Watch Those Fees
Fees seem to be going up each year. As we were developing the list for Appendix C, we did see a number of companies that charge $5 or $6 plus a purchase charge per share. That purchase charge per share was usually 10¢ or less.
If you’re investing just $10 per month and pay a fee of $5 for that investment, half your money goes toward fees rather than shares of stocks. So make sure you understand the fees being charged. Fees can be a huge drag on building a long-term portfolio.
If you do want to invest automatically in companies with hefty fees, you may want to consider a synthetic broker like ShareBuilder. We talk more about those portfolio-building options in Chapter 10.
Even if you are investing $100 and have to pay $5 or ...