How to Buy Stock Shares Online

Buying stock online is a low-cost and convenient way to invest in the stock market. Most online brokerage firms charge less than $15 to execute a stock trade, making online investing very affordable. You can take charge of your own investments and plan your portfolio rather than relying on costly financial planners and advisers.

Instructions

1. Go to the website of several online brokers to research which one is the best for you. Compare commission prices, minimum amount of funds needed to open and maintain an account and other fees, such as account inactivity fees. If you need help picking an online broker, many financial magazines publish guides to the best brokers. For example, Barron's has an annual ranking of the best online brokerages. In recent years Fidelity, Muriel Siebert and Scottrade have ranked well.

2. Open a brokerage account.

3. Fund your account. You can send the brokerage a check or you can transfer money directly from your bank account into your brokerage account. You can also set up automatic recurring investments. You will receive an email confirmation once the funds have been applied to your account.

4. Place trades. Log in to the brokerage website and place a trade. After you confirm the trade, the brokerage will send the trade to the stock exchange, execute the trade and send you a confirmation.

5. Track your Investments. Most online brokerages allow you to actively track your investments in real time. Log in to your brokerage account to see the current prices of your stocks, your profit and losses and your account balances.

Tips & Warnings

• Look for special offers and promotions when opening a brokerage account such as free trades for new customers.

References

• Barron's Magazine

Resources

• Fidelity Investments
• Muriel Siebert
• Scottrade