How Do You Buy Stocks Online?

If you're asking the question, "How do you buyExecuting A Buy Order With A Market Order or a
stocks online?" Then you've come to the right place.Limit Order
Not only will I tell you exactly how to buy stocksNow you'll need to collect the following information:
online, but I'll give you advice that is far morethe stock's ticker symbol, where the stock is traded
valuable than the simple, actionable answer. Please be(NYSE or NASDAQ?), the volume you wish to buy
sure to read the last section of this article as it isand the expiration of your order. The expiration
vital to your stock investing future.indicates when you want your order to expire should
So... How Do You Buy Stocks, You Ask?it not be fulfilled right away.
Create An Investment AccountYou'll also select either a market order, where you
The very first step is to create a separate bankingask that the order be executed immediately at
account from your primary share draft and savingscurrent market price, or a limit order, where you ask
accounts. You really don't want to intermingle thesethat the order be executed when the stock is in a
different bank accounts. You want to isolate yourspecific price range. If it doesn't reach the defined
investing money from the money you secure in yourprice range before your expiration, no transaction is
savings and you use for living in your checkingexecuted.
account. Move however much money you plan onAfter you've made these decisions and collected this
investing into this separate account.data, you then execute an order or put in a "bid"
I strongly encourage you to have at least a couplewith your broker. With online discount brokers, this
thousand dollars in this account. If you can't safelywill be a matter of clicking a few buttons. With some
put that much money in an investment account, youfull service brokers, you'll send the order to your
probably shouldn't be messing with buying stocks justbroker who will then execute the order for you.
yet.There's a tiny bit more to it than that, but the
Apply With A Brokerage Firmterminology varies depending on the broker you've
Now you'll see why we setup that investmentselected, so it's best to verify the last details through
account. Go to the website of an established,your individual broker.
trustworthy stock broker and apply for a newThe Most Important Answer to How Do You Buy
account. Don't go cheap if you're new to buyingStocks Online
stocks. You'll regret it. Go with a well-known fullTo be honest, I worry a little when I read questions
service brokerage firm. Fidelity and Charles Schwablike "How Do You Buy Stocks Online?" I worry
are often among the best rated, but do somebecause the person asking this question is clearly
research of your own before you commit.very new to investing online. There's nothing wrong
To register your account, you'll need to offer a bankwith that, but please, please be careful. These are
account to which you will connect your brokerageshark-infested waters.
account. It often will take a couple days for yourWhether you're investing in blue chip stocks or penny
accounts to be connected, at which point a selectedstocks, you'll find people online trying to exploit you.
amount of money will be moved from your bankTreat stock investing like a real profession. Be
account to your broker's account.thorough and thoughtful in your research and never
There is the universe and more between this stepact on impulse. Be poised and disciplined. Develop a
and the next step, but for now I'll proceed with therigorous system and stick to it.
purely functional aspects. The point of this article isDon't skimp on transaction commissions when you
to simply answer the question, how do you buyfirst get started. Let a full-service broker help you
stocks, afterall. But I still want to point out that youlearn the ropes. When you really know what you're
absolutely must do your due diligence before youdoing, you can graduate to cheaper transactions
invest real money. Don't just throw cash into thethrough a discount broker.
wind.