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$50 Bonus From ShareBuilder

This article was written by in Investing. 4 comments.


Updated June 24, 2010.

Jonathan at MyMoneyBlog tipped me off to a deal at ShareBuilder, an online brokerage that lets customers invest small amounts with a low fee structure.

I didn’t qualify for Jonathan’s CostCo discount as I’m not a member of the shopping club. It did inspire me to perform a Google site search in attempt to find other available offers.

The half minute of research work paid off; I found a $50 bonus deal available to everyone, using the code a code that is no longer available, but you can take advantage of a $25 bonus deal using the code 25WO10. My plan is to invest $50 of my money (minus the $4 transaction fee) in an exchange-traded fund. I chose IYZ, a telecommunications sector fund with a 0.60% expense ratio and a relatively large dividend. When I receive the $50 bonus a few weeks, I’ll simply transfer it back to my checking account. Those dividends, by the way, are automatically reinvested in the fund at no extra cost.

Net expense for the investment to my cash flow: $4.

I chose the telecommunications sector because I believe it’s under-priced compared to the rest of the market right now and I think it will continue going up. I’m not a financial adviser, so don’t blame me if you follow my example and lose money.

Updated February 6, 2012 and originally published August 9, 2005. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes, also known as Flexo, is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow Luke Landes on Twitter. View all articles by .

{ 4 comments }

avatar Luke Landes ♦127,495 (Platinum)

Update: I received this email, so it looks like the promo is definitely legitimate:

Dear —-,

You have met the requirements of the iplanlife ShareBuilder promotion and will receive your $50 promotion within 4-6 weeks.

avatar crow

Actual cost: $4 plus taxes on $50 of interest income. I think that’s how it’s characterized by ShareBuilder. It’s still a warm deal, just not as good as it first looks, especially considering the cost of selling the shares…

avatar Luke Landes ♦127,495 (Platinum)

ShareBuilder does have a high fee for selling shares. I’ll most likely hold onto those shares for as long as possible before selling.

avatar Luke Landes ♦127,495 (Platinum)

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