Do you want to buy stock online, but don’t know How To Buy Stock Online? Well, wanting to buy stock is a great first step. If you are new to the stock market, the main goal is to make it easy to start buying stocks online.
This article includes four steps that will walk you through opening a stock account. And placing your first trade in less than 15 minutes:
What’s A Brokerage Account?
A brokerage account is a place to buy and sell stocks or other securities. Brokerages are companies that make it easy for you to buy and sell stocks, bonds, options, and more.
You can open up a brokerage account either with a stock broker (who will charge you transaction fees) or by linking your bank account directly to an online broker like Fidelity or Charles Schwab (which won’t charge any transaction fees).
Below are some of the best online brokerages:
- Charles Schwab
- Fidelity Investments
- TD Ameritrade
How To Buy Stock Online
Now, let’s get started with the steps to buy stock online and start trading:
Step 1. Apply for an account
To buy stocks online, all you need is an account with a brokerage firm. Before you can open an account, you’ll need to fill out some paperwork and submit it to the broker of your choice.
The broker will then review your application and decide whether or not they want to grant you access. This process can take anywhere between a few days and a few weeks, depending on the broker and how busy their offices are at that time.
Step 2. Verify your identity and personal information
Before you can buy stocks online, you must verify your identity and personal information. Many platforms require different types of verification, so it’s important to be prepared with the following:
- Your Social Security number
- Address verification (in some cases)
- Date of birth verification (in some cases)
If you have any questions about the verification process, we recommend contacting customer support directly before proceeding.
Step 3. Fund your account on an ongoing basis
Once you have set up your account, it’s time to fund it. This means that you need to deposit money into your account so that you can start buying stocks.
There are several ways that you can fund your account. You can:
- Set up recurring deposits from a bank or other financial institution
- Set up direct deposit through payroll or government benefits
- Transfer funds from another brokerage firm
Step 4. Place a trade via the broker’s platform or another app.
Now that you have learned how to buy stocks online, it’s time to place a trade via the broker’s platform or another app. For example, TD Ameritrade offers an app for both Apple and Android devices that allows users to purchase stocks directly from their phones.
In addition to using a mobile app for buying stock online, there are also desktop trading platforms available at discount brokerages. These platforms usually offer more features than standard web browsers and may be easier for beginner investors who want a more user-friendly experience.
Can I Buy Stock Online Without A Broker?
Can you buy stock online without a broker? No, you need a broker to buy stocks online. Brokers are licensed and regulated professionals who have access to more information than you do, so they can help you make better decisions with your money. They can also save you money by recommending cheaper trades or by helping you avoid mistakes that could cost thousands of dollars in losses.
How Do I Buy Stock On My Own?
- What is the best way to buy stock?
- Should I sell my stocks if they have gone up in value?
- Should I invest in Apple stock because it’s a high-growth company?
If you’ve answered “no” to any of these questions, then you may want to consider investing on your own. You can do this by buying individual stocks or purchasing a small fraction of large mutual funds that invest in several companies at once.
The first step toward becoming your own broker is learning how the market works—specifically, how prices are determined and what makes them change. Stock prices depend on supply and demand: How much money people want to spend on buying those shares, versus how many there are available for sale (or how many people want to sell). The price goes up when demand outstrips supply; conversely, when more sellers come into the market than buyers are willing to pay for shares at that particular price level.
How Much Money Do You Need To Buy Stocks?
The good news is that you don’t have to be a millionaire to invest in stocks. In fact, you can start investing with as little as $1,000 and still realize the benefits of diversification.
If you are looking for more flexibility, other brokerages like Fidelity and Robinhood offer monthly minimums of $1,000—so if there’s a big chunk of cash that has been sitting in your savings account for a while and you want to put it toward something productive like investing in stocks, this may be the right option for you.
If committing to a larger investment seems daunting or puts too much pressure on your wallet at this time, don’t worry—you can always scale things down later!
How To Buy Stock Online For Free
First off, you need to open an account with a brokerage firm. If you’re not sure which one is right for you, check out Investopedia’s list of the top online brokers here.
Once you’ve selected a firm, it’s time to get started! Once again, this is where we run into a little bit of trouble: Some brokers require that users have both their Social Security number and driver’s license number before they can even open an account. And some brokerages charge fees for opening new accounts—as in $50 or more—while others don’t charge anything at all.
Fortunately for us non-Americans (and those who don’t want to use their SSN), there are many companies that offer free stock trading without requiring any personal information whatsoever (or at least without requiring it up front). Here are some of our favorites:
How To Buy Stock Online Without A Broker
You’re ready to buy stock online, but you don’t want a broker. You might feel like you can do it yourself and save money, or maybe your friends have told you about all the ways they’ve made money investing in stocks.
Either way, buying stocks without a broker is possible—and if done properly, it can be just as safe as paying someone else to do it for you. But before deciding whether to go pro or DIY in the world of investing, we have some things that need explaining on behalf of our friends at [Broker].
You can take more control over your finances by investing in stocks yourself
You can agree with that sentiment. Investing in stocks is a great way to take control of your financial future, and there are plenty of online tools available that make it easier than ever before. There are actually two ways to invest without a broker:
- Buy and sell stocks directly from the source (the company) or through an online brokerage firm like TD Ameritrade or E*TRADE that allows you to trade on their platform. You’ll be charged a small fee for any transaction you make, but no commission fee for each buy or sell order placed by you. This option is often referred to as “buying on margin.”
- Trade shares through an online broker like TD Ameritrade or Fidelity Investments; these brokers charge commissions for any stock purchase made through them, but they also offer more trading options—specifically, fractional shares (shares not divisible by 100) and short selling—than most other companies do.
If you want to invest in stocks but don’t know where to start, we recommend opening an account with a brokerage. Brokerages make it easy for you to buy and sell stocks, ETFs and other securities on their platforms or through mobile apps. They also provide educational resources like investing tutorials and analysis from experts so that you can learn more about how markets work.