Things You'll Need:
- access to the internet
- money to invest
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Step 1
you need an online brokerage account to buy and sell stocks onlineFind an online broker.
You must have an online brokerage account in order to buy and sell stocks online. There are many online brokerages to choose from. Take the time to investigate each site before opening an account. Ask the following questions in order to determine the best website for you:
-- Is there a minimum account balance to avoid maintenance fees?
-- What's the standard commission per trade? Can you get the same services for less on another site?
-- Can you find the information you need here? Is the user interface easy to use?
-- Is it possible to access your employee sponsored retirement account from the site?
You will need to prioritize these questions for your own needs to select the best site. -
Step 2
Open an online brokerage account to buy and sell stocks online.
Find the option on the website to "Open a New Account".
In order to open an online brokerage account, you will need to give your name, address, social security number and other personal information. This is primarily for tax purposes as well as to prevent online fraud. -
Step 3
fund the account in order to buy and sell stocks onlineFund the account.
In order to buy and sell stocks online you will need funds in your account. There are several ways to do this. The most convenient method is to link your bank account to your new online brokerage account and transfer funds.
You can also mail in a check to put money in your account.
Some online brokerages also have real-world retail locations where you can deposit money into or withdraw money from your account like a bank. -
Step 4
select a stock to buy onlineSelect your stock.
Do your research using the stock screener on the website of your online brokerage. Once you've selected a stock to buy online, select "buy". As long as you have enough funds in your account, the Buy Order will be executed almost instantly and you'll be the proud owner of stock.
Comments
superdadbrad said
on 10/21/2009 a market order is the current price of that stock in the market. You're paying the price of the moment.
a limit order puts a top limit on what you're willing to pay. It's like saying "I'll pay up to X but no more"
a stop loss is a bottom limit you set on a stock in case it goes down. You are stopping the losses by putting in a floor where you want to sell so you don't lose any more money.
Most times, when you are buying/selling stock you use "market order"-- It's the open market price and you're more like to get your order executed that way.
jeremy19 said
on 10/21/2009 When I try to buy/sell stocks online, I am asked if I want a market order, limit order, stop loss, etc. What does this mean, and what should I pick? Thank you.