What is needed to buy stocks online?

Buying stocks online has become a rather new phenomenon. Because for so long full service brokers took care of everything to do with buying stocks, many people do not know what is needed to buy stocks online.

In general to be able to buy stocks online all you would need are the following:
1. Wall street journal: you would want this to be able to educate yourself about the stocks, and decide which ones you want to invest in.
2. Broker account: you can sign up with a variety of online brokers to obtain this broker account, the key being to find one that is reliable, and affordable.
3. An education about the process of buying stocks: The following is a step by step guide about what you do to buy stocks online:

STEP 1: You will want to educate yourself fully about stocks before purchasing them. You can find information about stocks and brokers on the Internet, and by learning how to interpret and understand the Wall Street Journal.
STEP 2: The second thing you will want to do is decide what kind of services you want or need from your broker, or online brokerage account. Basically you will need to determine just how much face-to-face you need. If you want the personal service full service brokers offer, then online stock buying is not for you. You also need to decide if you want to buy and sell only stocks, or if would you also like to buy and sell mutual funds, bonds or foreign stocks as well.
STEP 3: Next you will choose an online broker, so whether that is Ameritrade, Charles Schwab, or a no namer, you need a brokerage account from which to purchase the stocks on your behalf.
STEP 4: With online brokers you can usually apply right there on the internet, and that is the next thing you will want to do. Some online brokers require money in the form of a check or money transfer (wire) before they will actually open the account. So make sure if you are snail mailing a check that you do it with enough time to get set up in time to purchase the stocks you want.
STEP 5: If possible, you may want to deliver a check in person to speed up the process, and eliminate the potential for human error (meaning the check getting lost in the mail).
STEP 6: Once the money is received you can officially buy and sell stocks online. So, you will want to start doing so.
STEP 7: last but not least, after you begin buying stocks online, you will want to keep track of how you do, evaluate your portfolio performance to determine if you need any extra help or advice, or if you are successfully moving toward your investment goals.

Some Tips:
 When buying stocks online do not trust all of the advice you find on the internet, much of it is hype meant to pump up a stock so some investor can dump their shares for a quick profit. So, do your research.
 Base your online broker choice on more than just price, also find someone reliable so that you do not run into problems like overloaded servers, etc.
 Recognize that while an online brokerage account is convenient and fast it is susceptible to computer glitches, so make sure you can make trades by phone if you need to so that you can still buy the stocks you want even if your computer is on the fritz.
 Online brokers are notorious for having hidden fees, so know exactly what you will pay before using a service.
 Open your account at least a few days before you plan to start buying stocks online as it can take a few days to process the information.

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Categories: Stock Brokers,

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