How to Buy Stocks Without a Brokerage Account

You really want to buy stock but the cost of a broker is too high for the small amount that you want. Going online isn't much of an option either, since a single share would still cost as much as the stock. However, there is a way that you can buy small amounts of stock without a brokerage account. Read on to learn more.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Computer
• Investment money
• Checking account

1. Check with the company's website under investor relations. This will lead you to the website of their transfer agent, the company that's in charge of maintaining the records for that stock. Many times that website will tell you if there's a Direct Investment Program. This means you can buy it directly from the company.
2. Sign up for a systematic purchase program. This program allows you to put a little money down for the initial purchase and continue at a specified investment, automatically taken from a checking or savings account.
3. Find out if the company offers a Direct Reinvestment Program (DRIP). This program allows the investor to reinvest the dividends of a particular stock back into the purchase of stocks or fractional portions. Once you're in the program, you can also send additional amounts of money to purchase more shares or fractional shares.
4. Buy a share through a discount brokerage house to get started and then sign up for a DRIP. To avoid any further brokerage fees, request the brokerage account be closed and a certificate issued. This will also cost you money, but it will be the last fees that you pay. From that point on, you will be dealing with the Transfer Agent.