During this holiday season, you might be tempted to pick up video game, a toy, or some other disposable gift for your children, nieces, or nephews, but perhaps another gift would be better suited… the gift of stock.
Historically, it would have been nearly impossible to give the gift of stock to a loved one for the holidays or for a birthday present, but Stockpile has managed to create a seamless experience that allows you to buy shares of a company as easily as you might buy goods on Ebay or Amazon.
The way it works is you simply type in a ticker symbol of a stock you want to purchase for a friend or loved one, and you can buy stock using your credit card.
Now those of you who trade often will find one part of the transaction to be troublesome: the cost. If you were to compare the cost of buying stock for someone else as a gift to the cost to buy stock online in a brokerage account, you will be disappointed because it is quite a bit higher.
An e-gift costs $2.99 + 3% credit card fee so if you were to purchase a $1,000 gift of stock for someone you’ll set yourself back $32.99 in fees, which is a whole lot more than the few dollars you might pay at a brokerage firm.
If you buy stock in your own Stockpile account, you will only pay $0.99 to buy and sell stock, so the costs are cheap compared to other brokerage firms.
It is only when you decide to give the gift of stock to others that you will be hit with the hefty fees. But when you think about the alternative way to give someone shares of stock as a gift you might realize it’s actually not a bad deal.
After all, the only previous way to gift stock to a child for example would be to set up a custodial account and it would involve knowing their personal information, such as their social security number, plus you would need to complete a bunch of paperwork.
Stockpile saves you the hassle of the paperwork and if you are a distant relative or not an immediate family member you probably don’t know social security numbers for recipients, so this saves you asking for information that they may not be willing to share with you.
Across the spectrum of brokerage firms, Stockpile is highly unique in providing this feature where you can check out as easily as you would on any other website. But rather than buying physical goods, you are buying shares of a company.
And for the recipient, redeeming a gift card is as easy as you might redeem a Starbucks gift card.
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