How To

How to Open an Online Brokerage Account

Contributor

By eHow Contributing Writer

Article Rating:

(28 Ratings)

One of the advantages of the Internet is now you have the opportunity to buy and sell stocks online, using an online brokerage account.

How to Compare Online Brokers
The technology wave has brought easy access to many services, including stockbrokers. When comparing onlin… More
How to Choose a Stock Broker
Investing in stocks should be part of your overall financial plan. Whether for your retirement years or da… More
How to Open an Online Trading Account
Online trading is fast and costs less to trade and maintain than a traditional brokerage company. Everythi… More
How to Open a Trading Account at a Brokerage Firm
A trading account at a brokerage firm allows you to buy and sell a full range of securities available on t… More
How to Open an Online Stock Account
The Internet has made it easy for people to invest in the stock market. There is no longer a need to seek … More
How to Open an Online Brokerage Account
One of the advantages of the Internet is now you have the opportunity to buy and sell stocks online, using… More
How to Open a TD Ameritrade Account
Trading online is becoming easier, and setting up a TD Ameritrade account is first step.… More
How to Trade Online at Schwab
More and more investors are turning to online trading companies for their investment options. Charles Schw… More
How to Find Online Brokers That Offer Services Internationally
You're looking for an online broker, but you're also interested in international markets. An online broker… More
How to Buy Stocks Without a Broker
You can purchase stocks and avoid the high commissions charged by brokerage firms with alternative investm… More

Difficulty: Moderately Easy

Instructions

Things You'll Need:

Internet Access
Computers
Wall Street Journal
Financial Calculator
Brokerage Accounts

Step 1

Decide what your individual financial needs are: How much information about stocks do you need? Do you need to be able to reach a live person by phone? Are you more concerned with ease of use and speed?
Step 2

Decide which online broker is best for you based on your needs. Visit Gomez.com for an excellent, up-to-date comparison.
Step 3

Decide how much money you'd like to put into your new account. Some brokers have minimum requirements. Some people start with a few hundred dollars, others with $100,000 or more; the amount depends on your financial situation.
Step 4

Complete an account application for your selected broker. Most brokers have an online application, but you will probably have to send in some paperwork with your signature as well.

Tips & Warnings

Peter Lynch, a successful money manager and author of several books about investing, recommends that you never put any money into a brokerage account if you are going to need the money in the next six months.
If you're new to investing, select a broker that provides telephone service as well as online service. A live person to speak with can be a real comfort when you're just starting out.
Focus on smart picks and good timing, not on commissions. Very few people lose their money because of paying high fees. They almost always lose money because of bad stocks or bad timing.
Some online brokers allow you the option of wiring money instead of sending a check, which can allow you to open your account right away.
Not all online brokers provide telephone service with online trading. Be sure your broker offers that option if you want it.
Some online brokers that provide telephone service can have prohibitively long wait times to get through. Test by calling the 800 number and checking the wait time yourself. If it's longer than 30 seconds or so, choose another broker.