Capital One Sharebuilder Review

Joseph Meyer
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Automated Withdrawals with Capital One ShareBuilder

The standard Capital One Sharebuilder fees apply to all trades, and a small charge for Automated Deposits. For customers who prefer avoiding fees on their sales, Capital One Sharebuilder does have a system in place.

As long as you have the funds in the capital one Sharebuilder account to cover the buy confirmations your selling, sales can happen for free.

You only pay standard fees when you actually place the order for a sale, which is different from some other brokerages. An American Express credit card is required to sell shares of your portfolio.

There is currently a promotion that subsidizes the same day sales charges. If you have access to free checks and cashiers checks, that do not have a service charge, then you can use those to pay for the day sales charges associated with sales. If your household has two Capital One Sharebuilder accounts, most sales will not incur day sales charges, with the exception of off-market executions.

The Capital One website assures that all methods of checking accounts of funds will be available, but no specific details are mentioned. The automated deposits system assures that Capital one Sharebuilder will make a transfer for you automatically.

Different Accounts That Capital One ShareBuilder Offers

Excellent Research

Even if you are pulling in a six-figure salary, you may still have to sock away a big chunk of your paycheck in order to save for retirement. If you are in this boat, you may be considering putting money in an annuity. Although this is a potentially good option, you have to be aware that not all annuities are the same.

The reason I’m pointing this out is because the person that introduced me to the Capital One Sharebuilder plan (Sharebuilder has since taken over and will handle all future promotion) promised me that I would enjoy a stronger return than what I would get from my low interest savings account. I was so impressed by this idea, that I wanted to research this opportunity for all to read about it.

So, before you go back to sleep, bear with me and keep reading to learn more about this unique opportunity that has the potential to deliver a strong return on your investment.

Building a Diverse ETF Portfolio with Capital One ShareBuilder

New Investor: Open a Roth IRA

If you’ve never invested before, an Individual Retirement Account (IRA) can be your best bet. After all, it’s an easy way to save for retirement with tax benefits and an added safety net. And as an added bonus, IRAs have flexibility that enables you to access some of the money that you’ve saved. If you’re starting small and don’t have a lot of money to spare, starting a Roth IRA is one of the best things you can do to start saving for retirement.

Seasoned Investor: Lower Your Trading Costs

Sharebuilder is the brokerage arm of Capital One Financial, a Fortune 500 financial services company. It is a brokerage geared toward no-load open-end funds (no-load mutual funds have no fees of any kind). The "shares" of stock that you purchase do not represent real shares of any individual company, but a small fraction of one of those "funds" of all different funds. It is a "mutual fund" broker. There are no minimum initial deposit requirements and if fees are charged at all they are small and paid indirectly.


A Free Service For Minimal Investors

Capital One Sharebuilder is a free investing service that provides low-cost brokerage and tax-advantaged investing. The company is owned by the Capital One bank and is commonly used by bank customers.

If your bank offers Sharebuilder, this is an excellent no-cost investing option that can assist you in either building your portfolio or adding a littler more breathing room to your overall financial plan.

Overall, the Capital One Sharebuilder platform is surprisingly well developed for a free service. It’s simple and very easy to use. The only thing that’s missing is the ability to choose the actual stocks or ETFs that you want to invest in.

This limitation should not be a deal-breaker for anyone, so I’ll recommend using the service for new investors and potential investors who are looking for a simple and easy way to invest on a regular basis.