How to Buying Stocks Without a Broker

Stock certificate

Working with a qualified investment broker often is the best plan if you are inexperienced in the stock market, but you can invest in stocks directly if desired. While unconventional, it is by no means a terrible idea, and you may do fine on your own if you are cautious. This article will guide you in buying stocks without using a broker.

Instructions

1. Look around for a major company that allows you to buy stock directly, such as Walt Disney, General Electric, Kellogg or Home Depot. They will sell you stock, and some even waive some of the fees and minimums if you agree to automatic monthly purchases funded by your bank account.

2. Check for dividend reinvestment plans (DRIPs) so you can enroll and use the cash investments option to purchase fractional shares and start growing your portfolio without a huge investment. You have to have at least one share of a company to qualify.

3. Consider purchasing from several different companies to diversify your portfolio. You don’t want all your eggs in one basket. Be smart with your money and spread it around.

4. Avoid stocks that cannot be bought or sold on the open market. You want to have liquidity and the option to change your mind if desired. Look for stocks with a good background and a bright future.

5. Keep careful track of your stocks and account for any money you earn or lose. Check with a CPA to find out how to minimize your tax burden. As the markets shift, you will need to constantly track and evaluate your stocks to ensure they are being productive.

Tips & Warnings

• Investing without a broker can be done but if you are a complete novice to investing it may be wise to consult with a trusted professional. At the very least take your time and do some thorough research before investing.

• Don’t let yourself be pulled around by the latest fad, or roped into buying company stock that you can’t afford. Invest wisely and don’t put at risk more than you are willing to lose.