How to manage your own portfolio online without allowing brokerage fees to take too much of your money?

I recently decided to try and take control of my own portfolio and open an online brokerage account. I would like to take at least 20 positions, but that would mean at least 199 dollars in brokerage fees alone. Since I have only about 1000 dollars per month available to invest, how can I diversify without spending close to 20% on brokerage fees alone? I also invest in mutual funds, but I want to try and beat their performance with my own picks, but since brokerage fees seem to eat up so much of my initial investmant, I would really have to hit it big with my picks before I made any money and so far I haven't even recovered the cost of my brokerage fees. Are mutual funds the only way to avoid high brokerage fees? I know that mutual funds charge management fees, but I don't think that it's 20% of my investment. Any suggestions?

Asked By: ellerkampbrian - 4/10/2006
Best Answer - Chosen by Asker
It sounds like you have a good handle on the issues that you will confront. Modern portfolio theory says that you optimize your portfolio where you have maximum returns given the risk of the investments. Remember that the market only rewards you for market risk and not individual firm risk, so diversification, like... More
Answered By: ajherden - 4/11/2006
Additional Answers (6)
you need an online discoutn brokerage. BMO Investorline has been rated the best many years in a row. Look it up on google.
Answered By: skoochie - 4/10/2006
Scottrade is $7 per trade... More
Answered By: wasdadd - 4/10/2006
Answered By: pinky - 4/10/2006
Check out Interactive Brokers. Basically they are $1 per trade, but you have to watch out for minimums and exchange fees. If you are active they blow away Scottrade, Etrade, etc... More
Answered By: Houyhnhnm - 4/10/2006
You cannot trade on 20 stocks with $1000 even if you use Scottrade $7.00... More
Answered By: Frank Castle - 4/11/2006
Answered By: Gordon Gekko - 4/11/2006
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