And Thomson believes most full-service brokers would prefer not to deal with his small purchases of 50 to 100 shares in which bigger transaction fees eat away at potential profits. And the smaller buys help keep the small investor engaged in business news, he said. Ken Schuster, a landscape company owner in Greenleaf, does more than dabble in online accounts. Schuster admits he could have a more well-rounded portfolio if he hired a professional. He limits the breadth of his holdings to keep up with news in a small number of sectors.
Brokers ought to know more.
They're not always right. They don't impress me as knowing any more than someone who seriously wants to find out some information. Schuster said the low online trading fees are a blessing and a curse. The cheap prices encourage investors to pull the trigger on more trades, for good or for bad. For people who use the tools rationally, online trading can be an efficient way to manage a portfolio, he said.