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Step 1
Discuss with your registered representative (broker) what investments are suitable for your situation. It is the job of brokers to understand the needs and objectives of their clients and find suitable investments.
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Step 2
Place an order with your broker. If this is a new account, you will need to fill out paperwork that reviews your contact information, assets, debts, income and investment objectives. The form will also discuss your investment experience. It is important for this information to be accurate to ensure your broker can give you the best advice possible as well as protect you from investments that your broker should not be placing you into.
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Step 3
Orders are placed during market business hours. Your broker should be able to give you a confirmation number immediately after the transaction is placed on the computer. This is known as the "transaction date." After-hours orders are placed the next business day the market is open.
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Step 4
Deposit the funds for the transaction including any fees associated with the transaction. You have three days from the transaction date to "settle" the account. This is noted as "T + 3" in the brokerage industry. If the trade is not settled by this date, the asset will be sold (even at a loss) and you will be responsible for the difference.
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Step 5
Placing an order to sell work the same way. The only difference is you are not responsible for getting the funds for the settlement date, but the funds will not be officially in your account until the trade does settle.
