Remember that since balance transfers and cash advances on credit cards are not considered purchases, these charges will most likely not earn any redeemable points through your card’s reward program. We cannot emphasize enough our dislike for the idea of using a cash advance or balance transfer to buy stock and our recommendation is to read your cardholder agreement to see if it’s permitted if you insist upon trying it. If you decide to use your credit card to make a balance transfer or cash advance from your credit card account into your checking account, you can then invest directly from your checking into a brokerage account. Whatever amount you pay for the gift card, you will owe that on your credit card balance and will also be charged the additional investment and trading fees through the app. Again, be sure to calculate beforehand what your actual gain will be after the fees incurred. If you’d like to make a purchase for more than $200 with a credit card, you’ll have to contact customer service to make the request. Stockpile allows a maximum purchase of $200 per 24 hours. You can buy a Stockpile gift card with a Visa or Mastercard (note that American Express or Capital One-issued cards are not currently able to be used to buy gift cards) and then redeem the value on the card for purchasing stock shares. With the Stockpile app, you can buy fractional shares using gift cards, which have a wide range in value starting at $1 and go as high as $200. If you do decide it is worthwhile to buy stocks with your credit card, you will likely have to route your money indirectly to land it in your brokerage account. These methods are often more straightforward and more secure for the investor. Understandably, brokerage firms prefer you fund your brokerage account using bank transfers or checks. Be sure to do your research and consider the risk-reward proposition before making a financial commitment. Using a credit card to buy stock can add risk to an already risky transaction, but credit card rewards may make it worthwhile. You can invest using a credit card, but just because you can do something doesn’t mean you should. Buying stocks is a risky game, but some ways of financing your stock purchases are less risky than others.
0 kommentar(er)
