ShareBuilder Free Trades for a Year

If you have not opened an IRA yet - Now is the time to do so!  Or, if you are unhappy with your current broker, this new promotion from ShareBuilder might be what it takes to convince you to try something new. ShareBuilder is offering a new promotion to new IRA account holders to receive free trades for the entire year of 2010 with Promo Code: 2010IRA.

*Open an IRA before 4/15/10 to receive 1,500 Automatic Investment Plan credits. The trade credits will be posted to your account the next business day and will expire on 12/31/10. This offer applies to Individual Retirement Accounts only. AIP credits for mutual fund purchases apply only after the minimum investment has been met. Visit the ShareBuilder website for complete pricing and rates.

Personally, I think this is a great deal. Trade commissions can eat up a large portion of your contribution. For example, if you do a monthly investment plan and buy only two stocks or funds - that is 24 trades. Your costs could range from $4 at ShareBuilder to $10 or more at other brokerage houses. Granted, some brokerage houses waive trading commissions if you are buying their brand name funds. For the year, your costs would range from $96 to $240+. And if you are only investing $5000 into a Roth, those trading commissions quickly become an expense of almost 2% to almost 5% of your total investment.

Are you a ShareBuilder investor? What is your experience? Share below in the comments.