The Pros and Cons of ShareBuilder

One of ShareBuilder’s greatest advantages is its convenience — the services are available entirely online, so you can open your account and maintain it from the comfort of your own home — without ever setting foot in a bank. Additionally, you’ll find a number of different account types to suit your needs, including:

• Traditional and Roth IRAs
• Individual and joint accounts
• Custodial accounts
• Education savings accounts

There’s no fee and no minimum amount needed to open your brokerage account, and the cost to trade is much lower than that of your average brokerage firm. You will also have several investment options at your disposal, including stocks, mutual funds and EFTs, so you can diversify your investment and get the most out of your money. You will also be able to purchase partial shares, which is an unusual and inexpensive perk of this platform.

Another big boost ShareBuilder provides is its Service Team, which consists of real people who are ready to answer any questions about your investments and guide you through the proceedings. There are also automated tools to help you track your accounts, such as a portfolio analysis tool, an investment screener, and stock and fund ratings to aid you in making informed choices. The ShareBuilder app even allows you to conveniently trade on the go.

Though the fees are low, there are quite a few associated with ShareBuilder investing. You will pay a fee for each trade, investment or transfer you make, and the amount of the fees involved can occasionally make this a more expensive route to take.

Another downside to ShareBuilder is that you won’t have access to all the benefits of the platform unless you sign up for an advanced plan — you will have to pay a higher fee every month to receive the exclusive perks. ShareBuilder also does not offer extended-hours trading, and some of its assistance and research are not as thorough as those provided by other full-service brokerages. This makes it necessary for you, the investor, to put in your own time and research to avoid making a poor investment.

ShareBuilder is geared toward beginner traders who want investments made automatically and to have a somewhat hands-off approach to trading. People who are active traders may have difficulty with the less intuitive trading tools and abilities, and this can be a big turnoff for serious investors who trade on a regular basis.

We look at the top investing sites that compare to ShareBuilder to give you a better idea of how ShareBuilder stacks up. We reviewed everything from cost to customer service.

To start trading on ShareBuilder, you’ll need to choose which type of account you want to open. You can select an individual or joint account, or set aside for your retirement with a traditional or Roth IRA (both of which are nontaxable). You also have the option of investing for a child by using a custodial account or education savings account.

At this point, you will also need to select the number of automatic investments you want to make per month, along with the amount that each investment should be. Then, depending on how many trades you plan to make each month, choose your plan (Basic, Standard or Advantage). If you plan to make a high number of trades per month, you will benefit from one of the upper-tier plans, as the per-trade fee lowers as you make more trades.

Once you’ve opened your account, you can start building your investment portfolio by trading or purchasing stocks, mutual funds or ETFs. You also have the option of purchasing partial stocks. You can keep track of your investments by logging into the ShareBuilder website or using the mobile app, and you may have tracking alerts set up to let you know when market changes occur.

ShareBuilder does not require any fees to open an account, and there is no minimum initial investment. There are also no fees for inactivity or annual maintenance. However, a number of fees do apply to trading and investing:

The main takeaway from most ShareBuilder reviews is that this investment firm is for beginning investors — or for those who prefer the autopilot approach to investing. The site tools and associated trading fees are not meant to accommodate someone who is actively trading on a regular basis.

However, for someone who is just starting the investment process, it is a simple way to jump on board. The fact that you can set your account to invest automatically ensures no need for persistent oversight or maintenance.

Additionally, most reviewers say the customer service department is both friendly and helpful, but its knowledge is pretty much limited to the use of the platform. The customer service reps are not necessarily financial experts, so traders need to come to ShareBuilder with some level of knowledge or have access to help from another source.

Lastly, one commonly noted advantage that most reviewers agree on is that the ShareBuilder site is easy to use. The platform offers your account info at a glance, allows you to navigate with ease, and makes basic automated investing as simple as it can possibly be.