ShareBuilder Costco Sign-up Bonus Promotion

The online discount broker ShareBuilder currently has a sign-up bonus promotion for Costco members.  ShareBuilder encourages recurring monthly investment, dollar cost averaging, and the general idea of building your investment for the future — because of that, it wasn’t much of a surprise when ING Direct decided to purchase ShareBuilder a few years ago.

The promotion is simple. You get a $90 account bonus if you’re a Costco Executive member along with a 25% transaction charge rebate, or you’ll receive a $70 account bonus with a 10% transaction charge rebate if you’re a Costco Gold Star and Business member.

Sign-up Bonus Requirement:

  1. Visit the ShareBuilder/Costco sign-up page to register for an account.
  2. You must be a current Costco member with a valid Costco membership number.
  3. Bonus will be deposited into account 6-8 weeks after first stock purchase.
  4. Offer valid for only new Joint, Individual, or Custodial accounts. Offer doesn’t apply for IRA and Education Savings Account, bummer!
  5. Limit one bonus per unique customer or unique custodial account.
  6. Offer ends 5/31/09. First stock purchase must be made by 7/31/09.

If you’ve been looking  for a simple-to-use brokerage account to do automatic investing and dollar cost averaging with,  ShareBuilder can be a good consideration as their low $4 per trade cost  for automatic investing isn’t too bad for some stocks and exchange traded funds — but only if you buy in large chunks as $4 per trade can easily add up.

ShareBuilder is also an okay starter account for those that have limited fund but are interested in starting an Individual Retirement Account or an Education Savings Account, as they offer no cost, no load mutual funds from ING.  The ING mutual funds also offers a low initial investment minimum of $250 for IRA and ESA’s, compare with $1,000 to $3,000 for select funds at Fidelity or Vanguard.  Take note however that some of the fund’s expense ratio is slightly more expensive at around the 1.0% ranges.

A ShareBuilder account is perfect for those that fit into the above scenarios, and the current Costco promotion bonus can definitely be an icing on the cake for those opening a non-IRA/ESA account.