How to Buy Stocks Using Share Builder
The upside of a down economy is that this may be a good time to invest in the stock market while stock prices are lower. Sharebuilder is an online brokerage that allows you to buy stocks online. You can also use Sharebuilder to set up an automatic investment schedule so that you set up a predictable budget expense for investing in the stock market.
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Instructions
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Set up Your Stock Trading Account
Log into the Sharebuilder website and set up your own account based on your own investment goals. You will need to provide identification and mailing information.
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Choose the Type of Investment Account
Your options will be to set up a personal investment account, a retirement investment account or an account for your child. You can choose between three pricing programs : make single transactions at a cost of $4 per transaction (you will pay the cost of the stock you're purchasing and an additional $4 for the ability to place the transaction), make 6 scheduled investments for $12 per month, or make 20 scheduled investments for $20 per month. If you are interested in real time(transaction occurs almost immediately after being placed) trades, each transaction costs $9.95. Options trading and mutual fund purchase is also available at different price points.
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Fund Your Stock Trading Account
If you're interested in setting up an automatic stock purchase schedule, you can set your account up so money is withdrawn from your checking account every month at the same time your automatic stock purchase transaction takes place. You can also wire your funds to your sharebuilder investment account or send a check in.
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Start Investing in the Stock Market
Use the "Search for Stocks" tab to research what you want to invest in. This is extremely important. Invest in stocks that you have researched and that have long term potential. Setting up a monthly investment schedule is a way of dollar cost averaging so you are purchasing stock over a period of time. Also, be aware that if you are investing small accounts then the fees could be greater than gains made that month. Set up an investment schedule based on your budget and money that you have for investment after payment of debts and setting aside money for an emergency fund. Revisit and diversify your financial investments and stock portfolio periodically. Talk to a financial advisor.
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Tips & Warnings
Other online stock brokerage options to consider are Ameritrade.com and Etrade.com.
Talk to a financial advisor regularly. Be cautious and do your research prior to investing in the stock market. Be aware that you could gain or lose money.
Diversify your financial investment portfolio so all your eggs are in different baskets.
Make sure that you prioritize paying of debts and setting up an emergency cash fund prior to investing in the stock market.
Resources
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