When you first get started delving into the world of insider trading, youll probably begin with free sites where you can access a list of all insider trading activity, like:
Yahoo! Finance Where you click on Insiders for a list of the latest trades, although some recent activity isnt logged into their database for up to a month after the insider trading actually occurs And
SEC EDGAR Database Where you can search for the central index key for a company and look up individual filings as they occur in real-time, although its not a very pretty website to stare at all day.
As you can see, there are drawbacks to the DIY
insider trading method. Youll find you have loads of questions as you get started, too. For example: How do you know a major trade from a minor one? How is the individual affiliated with the company? What is this persons past history of insider trading? Are other insiders within that same company trading similarly or are they diametrically opposed? It can be a real headache, you see, which is why many people elect insider trading assistance. When looking up insider trading companies, its important to consider the following questions:
How much does the company charge for insider trading information?
What services does the company offer besides information?
Can you trade right through the site? Are there account fees?
Is there an option to receive real-time alerts as insider trading occurs?
Are you locked into a set amount of time or can you cancel as you wish?
Some full-service insider trading companies like eTrade act as brokerage firms too. While the monthly fee may be low, you have to watch out for added charges associated with using their other services. For example, in addition to the $9.99/month, youll also need to pay 75 cents per trade, $2.99 for futures contracts and $45 for all broker-assisted trades, to name a few extras. Less expensive insider trading companies like TrackingTheInsiders.com offer information only, leaving you to decide how and where to trade. If youre the independent type, you can get your market analysis for $9.99/month and sign up for free stock trading through Zecco. Why pay hefty brokerage fees if you can gather your own information and make your own decisions?
Monthly access to an inexpensive insider trading site can save hours of time and, as you know, time IS money! These arrangements offer more independence for the intelligent investor who is sick and tired of being led astray by so-called professional brokers. Before signing up with an insider trading website, make sure there are no strings attached and you can cancel anytime. Also check to see that the people running the site are truly passionate and experienced, not just some fly-by-night company looking to make a quick buck. Only time will tell if the advice youve received is sound, so try it for 6 to 12 months and see if your
insider trading investment strategy really pays off.
