The individuals who cannot afford to invest more finances at some point of time, then dollar-cost averaging will be an efficient method of investment for them. For instance, if a person can make investment of a very small amount, i.e. from US$20 to US$40 every month and he/she can still be befitted with a large variety of investment products, such as exchange traded funds and stocks.
Difficult in Past to Make Investment
During the times of yore, it was not easy for large number of individuals to make an investment of cash in the stock market owing to the condition of least amount of brokerage which was pretty high.
Share builder
The situation was altered with the inception of Share builder (an online stock brokerage company) in 1996. Nowadays, this company is Supplementary of ING Bank, as ING Group bought this company in November 1997. After that, the shares have become available to all Americans in Wall Street.
Share builder and Dollar-Cost Averaging
Why do people offer Share builder despite the availability of other online brokerages firms in abundance? Some of these even charge fewer commissions on the instantaneous deals. Actually Share builder provide certain services that are offered by none:
