How/Where to buy just 100 or 300 unit of shares?

L

lookingaround

New Member
Hi,

Recently decided to invest in some mining shares, but is a complete newbie in this area.

I have been watching a few junior minor shares, and want to buy just small amount, maybe like 100 to 200 unit of it.

However, with Commsec, the minimum amount is $500, which is too much for me, as I want to buy like 5 or 6 different stocks, and that would be like spending $2000 to $3000 on risky stocks.

For a newbie just learning how to invest in junior mining shares that is very risky.

So does anyone know any stockbroker, online or in person, that is happy to take tiny orders? I like 100 to 200 unit of shares, that are often priced less than a dollar?
 
That is a point I have considered too - $20 brokage fee out of $100 worth of share is a lot!

However, my plan is to go long on some of these investments - pretty much buying then when they are at a very early stages.

But to spend $500 on a company that may or may not produce anything, I probably would prefer to buy 10oz silver instead :)
 
You wouldn't bother with trading several shares for such low amounts. Even with stop losses in place taking a hit on any of them would amplify your losses when you add in trading costs. If you do your research properly 500 in one go should be fine. I noticed that CCC has just done a 1:10 share consolidation from something like 2.9c to 29c. I bought them at about 4.8c and sold in the mid 7c range before this last down turn. At 29c a share I think they are a great buying opportunity with growth ahead.
 
I think that the minimum amount you can buy is $500 initially, but once you've made that first purchase then you can purchase lower amounts of shares than that; that goes for all trading platforms.
 
Mate

Trading or investing $500 in junior mining shares in this climate! You are fodder, If you fail to research. I trade $10k packages, & just make a buck.

Buy Silver
 
Au.Ag.Mzch said:
I think that the minimum amount you can buy is $500 initially, but once you've made that first purchase then you can purchase lower amounts of shares than that; that goes for all trading platforms.
Click to expand...

This is correct, ASX Rules......
:)
 
the minimum share parcel 100% of the time on comsec is $500, if you sell and what is left is less than $500 comsec wont let you sell....

Comsec is hardline on this, its really crap when you want to purchase options as an alternative way of buying shares
 
$500 isnt really that much money. I think the minimum used to be $2000. So its not to bad these days if you want to go small.
There isnt much point going in smaller amounts than this as everyone has said brokerage will slaughter you.
 
Thank you for the reply.

Good to be a newbie, you can ask silly question :)

But I think this is the best time to investigate buying some of these shares, since everyone is so fearful and dumping... :)
 
I'm with Bell direct.

$500 is also the minimum, but that's per company.

Eg: If I buy RIO Tinto shares I need to buy minimum $500 worth.

If I buy Newmont Mining shares I need to buy minimum $500.

If I choose to purchase RIO or Newmont shares a second time round, then I can buy less than $500 worth.

Basically, the $500 minimum is for the first lot purchased of a new company.

If I keep purchasing new companies, I will always need to fork out $500.
 
In my opinion stay away from shares you will always loose as a small player. The big boys control the shares not economic forces. Unless you have $$$$ to spend i wouldn't bother. Just my opinion.
 
I'm pretty sure that Westpac Online Investing has the option of buying less than $500 worth of shares, though they charge $25 fee for each time you buy shares.
 
joshrichy said:
the minimum share parcel 100% of the time on comsec is $500, if you sell and what is left is less than $500 comsec wont let you sell....

Comsec is hardline on this, its really crap when you want to purchase options as an alternative way of buying shares
Click to expand...

Are you sure? that must be their own rules, I've seen lots of accounts with 1 stock left. Had one who had 1 stock left @ 2c, sold it @ $20 bro LOL.

I don't see how options has anything to do with that, you can buy 1 contract - that's not really a problem?

OP, if you only want to invest $500 or less in a stock, you shouldn't be investing in stocks. Your minimum parcels should be at least $1000, $20 bro is 2% gone right there. $20 bro on $500 is already 4%, that's a lot.

Narrow down to the top 2 or 3 speccy stocks you like then purchase those, if you only got a couple of thousand bucks, you shouldn't be diversifying to more then 2 or 3 stocks.

And to clear it up, no-one will allow you to buy less than $500, it's an ASX rule.
 
ReturnToZero said:
joshrichy said:
the minimum share parcel 100% of the time on comsec is $500, if you sell and what is left is less than $500 comsec wont let you sell....

Comsec is hardline on this, its really crap when you want to purchase options as an alternative way of buying shares
Click to expand...

Are you sure? that must be their own rules, I've seen lots of accounts with 1 stock left. Had one who had 1 stock left @ 2c, sold it @ $20 bro LOL.

I don't see how options has anything to do with that, you can buy 1 contract - that's not really a problem?

OP, if you only want to invest $500 or less in a stock, you shouldn't be investing in stocks. Your minimum parcels should be at least $1000, $20 bro is 2% gone right there. $20 bro on $500 is already 4%, that's a lot.

Narrow down to the top 2 or 3 speccy stocks you like then purchase those, if you only got a couple of thousand bucks, you shouldn't be diversifying to more then 2 or 3 stocks.

And to clear it up, no-one will allow you to buy less than $500, it's an ASX rule.
Click to expand...

It not asx rules, its only comsec.

If they guy wants to invest with such low parcels - I think the consensus (excluding individual advice) is that you better have a well thought out plan and manage risk other wise the chances of loosing whatever you invest is pretty high. There is nothing wrong with buying 20 shares in BHP every month and accumulating, conversely I think we would all agree that there is equally nothing wrong with buying $500 worth of ETPMAG every month.... the thing is (regardless of how little or much you have to invest) do you really have aplan and understand what the risks are? If the answer is yes - the ultimate test for you plan is to buy, coz at the end of the day you will have to live with your own choices....
 
joshrichy said:
ReturnToZero said:
joshrichy said:
the minimum share parcel 100% of the time on comsec is $500, if you sell and what is left is less than $500 comsec wont let you sell....

Comsec is hardline on this, its really crap when you want to purchase options as an alternative way of buying shares
Click to expand...

Are you sure? that must be their own rules, I've seen lots of accounts with 1 stock left. Had one who had 1 stock left @ 2c, sold it @ $20 bro LOL.

I don't see how options has anything to do with that, you can buy 1 contract - that's not really a problem?

OP, if you only want to invest $500 or less in a stock, you shouldn't be investing in stocks. Your minimum parcels should be at least $1000, $20 bro is 2% gone right there. $20 bro on $500 is already 4%, that's a lot.

Narrow down to the top 2 or 3 speccy stocks you like then purchase those, if you only got a couple of thousand bucks, you shouldn't be diversifying to more then 2 or 3 stocks.

And to clear it up, no-one will allow you to buy less than $500, it's an ASX rule.
Click to expand...

It not asx rules, its only comsec.

If they guy wants to invest with such low parcels - I think the consensus (excluding individual advice) is that you better have a well thought out plan and manage risk other wise the chances of loosing whatever you invest is pretty high. There is nothing wrong with buying 20 shares in BHP every month and accumulating, conversely I think we would all agree that there is equally nothing wrong with buying $500 worth of ETPMAG every month.... the thing is (regardless of how little or much you have to invest) do you really have aplan and understand what the risks are? If the answer is yes - the ultimate test for you plan is to buy, coz at the end of the day you will have to live with your own choices....
Click to expand...

100% correct mate. The only problem is that bro is an issue - if you are buying $500 a month, your giving away 4% a month for no real reason @ $20 bro.

You can effectively dollar cost average even if you only buy 4x a month over a long enough time frame. I.e. instead of buying $500 a month and paying 4% in bro, buy 1500 every 3 months, paying only 1.3% bro, you will be much much better off. The only reason you would buy 500 a month is if you are a super bull and you see the stock rising an extra 2.7%+ every 3 months to break even with your bro costs vs buying every 3 months.

Also keep in mind of when you buy, just cause its 3 months to the day doesn't mean you should buy on that day - BTFD.

In addition, keep in mind what you are doing here OP, it doesn't look like you are willing to take on too much risk by only buying tiny parcels but for some odd reason you want to take on mega risk by buying speccy stocks in a bear market, fundamentals don't matter if there is a run on the market and small caps always lead the charge down.

You also have to ask yourself do you have the willpower to hold on to stocks with good fundamentals when there is a run and you lose 60%?
You also have to know, is the run just a general market run or if the fundamentals have changed (in that case, get out)? You need to be constantly alert at the news that comes out and know how to read their balance sheets. Finding out from a forum is too late.

Remember you are not buying low risk stocks with high volatility, you are buying high risk stocks (speculative, non producing) with high volatility (low volume) - that's about as stressful as it gets. Is a few hundred dollars worth that much stress?
 
ReturnToZero said:
100% correct mate. The only problem is that bro is an issue - if you are buying $500 a month, your giving away 4% a month for no real reason @ $20 bro.

You can effectively dollar cost average even if you only buy 4x a month over a long enough time frame. I.e. instead of buying $500 a month and paying 4% in bro, buy 1500 every 3 months, paying only 1.3% bro, you will be much much better off. The only reason you would buy 500 a month is if you are a super bull and you see the stock rising 2.7%+ every 3 months to break even with your bro costs vs buying every 3 months.

Also keep in mind of when you buy, just cause its 3 months to the day doesn't mean you should buy on that day - BTFD.

In addition, keep in mind what you are doing here OP, it doesn't look like you are willing to take on too much risk by only buying tiny parcels but for some odd reason you want to take on mega risk by buying speccy stocks in a bear market, fundamentals don't matter if there is a run on the market and small caps always lead the charge down.

You also have to ask yourself do you have the willpower to hold on to stocks with good fundamentals when there is a run and you lose 60%?
You also have to know, is the run just a general market run or if the fundamentals have changed (in that case, get out)? You need to be constantly alert at the news that comes out and know how to read their balance sheets. Finding out from a forum is too late.

Remember you are not buying low risk stocks with high volatility, you are buying high risk stocks with high volatility - that's about as stressful as it gets. Is a few hundred dollars worth that much stress?
Click to expand...

All true, commsec have $600 worth of free brokerage if its a new trading account with cash account, so if he is a new investor - the brokerage would not (initially) be an issue - but when the free brokerage runs out hopefully his positions are set, or he will have to rethink his strategy to something like what you have said above.
 
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