Tag: online trading

How to Buy Stocks Online Without a Broker?

How to Buy Stocks Online Without a Broker?

You don’t need to have a broker to buy stocks, mainly if you don’t want any expert advice to guide you in choosing which stocks to buy or not, because brokers can sometimes cost extra money. It is true that the well-known way to buy and sell investments is by opening a brokerage account, but still, there are others who want to buy stock without a broker. If you want to go down this way to business ownership, you can do so, but with varying degrees of success – there is no condition that you have to work with a broker to invest in stocks mutual funds, particularly equity funds.

You have two choices if you like to buy stock without a broker: The first is to use a discount brokerage service online. The second is to buy stocks directly from the company.

However, direct investing offers some advantages and disadvantages, with which you will have to weigh things based on your personal condition. You will still need to decide whether such an approach is appropriate for you given your unique circumstances and preferences.


  • Look for a discount brokerage that fits your needs.

Check the price of buying individual stocks directly and account minimums. Other companies provide discounted trades, if you maintain a high balance in your account. Oftentimes, there are hidden fees. When you differentiate companies, find the trading cost and search the section that reveals the fees.

  • Observe how hard it is to utilize the online broker’s software.

Other companies provide good buys in trading stocks, but sometimes it is quite hard to trade, unless you’re a technology-savvy. Some companies provide a spot to try their trading software. Use their demonstration model prior opening your account.

  • Open the account and send your check or money order.

Other companies provide automatic withdrawal from a checking account, but most it needs you to mail in a check to put money in the account. You are ready to trade once the money is in your account.

  • Choose the stock and number of shares you want to buy.

You also need to decide on the cost you wish to pay. You can pick a market price or limit your order. A limit order means you will only pay a specified amount for a stock. If the stock did not drop to that price, you will not be able to buy it. Click on “Buy” after you decide all or nothing. This option just means you do not want a partial buying or if  you can’t get the order, kill it.


  • Find companies that provide the right to buy stocks directly from their transfer agent, the company that handles their stock. Often, you will see the information on the company’s website under investor relations and DRR or DRIP programs.
  • Look for the resource area to find a list of companies that give DRIP plans. Once you find the company, simply find their site and their minimums. Sometimes, there is a minimum investment with lesser amounts if you add to the account.
  • Open an account with the company’s transfer agent. You can buy anytime or have automatic regular investments.


As an investor, one of the most critical decisions you will make is on how to pick or choose a broker. Choosing the right online brokerage boils down to your priorities. Some investors are prepared to pay higher trade commissions for a state-of-the-art platform. There are a lot of companies providing a brokerage service on the web, and some of them are just as good or better than traditional. But the real question is how to choose which online broker is best for you? Settling on the best choice for you means considering different factors, which may vary from broker to broker.

Below are some factors you would want to consider in choosing an online broker.

1. Markdown is not always a good deal

If you are a neophyte investor, you may consider starting out with a full-service broker. It’s often best to help the beginners to build confidence and knowledge  about the markets. And as you become a more refined investor, you can move on to investing more of your money on your own.

2. Accessibility is the key

You may try to look at the company’s website at different times throughout the day, especially during the hours of peak trading. Try to observe how fast their site loads and check some of the links to confirm that there are no technical issues or difficulties.

3. Alternative trading offers flexibility

You may check the firm’s other options that they offer for placing trades. Other alternatives may consist of touch-tone telephone trades, fax ordering, or doing it the low-tech way of talking to a broker over the phone. You should make sure to pay attention to these alternatives because they often differ from an online trade.

4. Broker’s background matters

You should do some essential research about the broker’s background before buying a stock. As much as possible, you should find out everything about your broker.

5. Price doesn’t mean everything

The price may be an indicative of the quality. You should not open an account with a broker simply because it gives the lowest commission price. Company’s advertised rates vary between zero and $40 per trade, with the average around $20. You may find that the advertised commission rate may not be applicable to the type of trade you want to do.

6. Minimum payments may not be minimal

You may check how much of an initial payment the firm requires for you to open an account. Be cautious of high minimum balances, some companies require as much as $10,000 to start. This might be okay for some investors, but not others.

 7. Product choices are essential

When picking a brokerage, a lot of people are probably thinking initially about buying stocks. You should remember that there are also many investment alternatives that are not specifically provided by every company. This includes CDs, municipal bonds, futures, options and even gold or silver certificates. Some brokerages also provide other financial services, such as checking accounts and credit cards.

Online broker can help you buy and sell stocks effortlessly. The essential tools for the trade are vital to every progressive venture and searching for success in the market starts with choosing the right broker.