While there are several brokers and companies providing stock trading, there are few in-house traders that specialize in stock indexing. As one can see from the chart, the average cost of an in-house trading account as of March 2017 is around $5,500 for a single account, plus costs for research and administrative and even brokerage commissions. For the average trader, this amount doesn’t leave much left over to save on trading expenses, leaving them looking to buy or sell stocks on margin.
If you’re looking to trade actively in stocks and actively manage your finances, you need money to spend on expenses to become an asset allocator rather than just a trader. We’ve listed several ETFs with low trading costs, which are perfect for a beginner when it comes to trading stocks.
The three most popular ETFs for indexing are the iShares S&P 500® (^SPY), the iShares Russell 1000® (^RUT), and the Vanguard FTSE® (^VE)). The former has the lowest expenses, the latter features index management, and the former is the most advanced ETF.
iShares iBoxx $ Dividend 5 Years High 1- Year Low 5-Year High 1-Year Low Dividend Growth iShares Russell 2000® ETF (^XBT) 9.99% 2.59% $4,079 10.05% 2.27%
The iBoxx $ Dividend 5-Year High 1- Year Low 5-Year High 1- Year Low iShares Russell 2000 Index Fund (^XBTX)
3.5% 4.14% 2.99% $3,521 5.49% 6.27%
The iBoxx $ Dividend 5-Year High 1- Year Low 5-Year High 1- Year Low iShares Russell 2000 Growth IBD ETF (^XBLIX) 5.69% 6.31% 3.69% $2,568 3.94% 4.13%
Vanguard FTSE iBoxx Large Cap ETF (^VBOXX) 5.29% 6.17% 6.99% $619.50 4.49% 6.52%
The iShares Russell 2000 Large Cap ETF (^XBTX) & iShares Russell 2000 Small Cap ETF (^XBLIX)
3.5% 4.14% 2.99
short swing trading definition financial hardship, swing trading stocks to watch, day trading vs swing trading vs position trading, swing trading stocks for this week, swing trade stocks or forex