How to Buy Stocks Without a Broker
You can purchase stocks and avoid the high commissions charged by brokerage firms with alternative investment strategies. One way is to set up an on-line brokerage account. It’s cheap and simple to do, plus you’ll learn about investing first hand. Another way is to buy stocks directly from a company through a direct purchase plan. Investing your money in stocks has never gotten easier.
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Instructions
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On-line Brokerage Account
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Open an account with an on-line brokerage firm. Some investment websites to look at are: Sharebuilder, eTrade, ScottTrade, Ameritrade, TD Waterhouse, etc.
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Deposit money into your account through an electronic funds transfer from your regular bank account so you have funds to invest.
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On-line brokerages have literally thousands of company stocks, bonds and exchange traded funds (ETFs) to choose from. Use the investment tool tutorials to orient yourself with the products offered.
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Make your stock picks, type in the ticker symbol and the number of shares you want to invest in and place your order. Transactions cost between $4.00 to $20.00, depending on the firm.
Direct Purchase Plans (DPP)
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Choose your stock, go to the company’s website and look for the “Investor Relations” page.
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Contact Investment Relations either by phone or e-mail and ask if they participate in Direct Purchase Plans. DPPs for the purchase of a company’s stock is usually handled through the company’s transfer agent. Costs are very low and depend on the handling agent’s fees.
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Set up an account with the company you want to purchase stocks from with the transfer agent, send them your check and they will invest your funds in that company.
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