How to Set Up a Stock Account

With the abundance of financial news available in the media, many individuals are interested in investing in the stock market, but don't know how to begin. For some, even the initial task of setting up a stock account is an unfamiliar process that can be intimidating. Fortunately, opening an account is an easy process that requires just a few steps,.

Things You'll Need

• Money
• Personal information

Instructions

Instructions

1. Assess your knowledge about the stock market, and decide whether you need the assistance of a financial adviser or if you have the ability to manage your own stock account. If this is your first time managing your finances, and most of your ideas come from financial television programs, you might consider at least speaking with an adviser. However, if you have experience handling your own finances, or managing the finances of a business, you may consider directing your own stock account.

2. Research the available firms that you might be interested in, whether they are online or bricks-and-mortar. Determine which one might be most appropriate for you, taking into account factors, such as trading costs, account maintenance costs, broker accessibility, reputation, safety and corporate culture. Understand that if you work with a financial adviser, you will be speaking to the same person whenever you want to talk about your account, but if you work with an online firm, you will most likely speak to whomever answers the phone.

3. Speak with a financial adviser at the firm, over the telephone or, better yet, in person. Make sure that you are comfortable with the firm and with the level of service you receive on this first visit with the broker. Discuss the various types of accounts that you may open, such as an individual account (for you alone) or a joint account (for your and your spouse, for example).

4. Complete the new account paperwork that your broker provides. Some of the information the broker is likely to require includes personal information, including your Social Security number, date of birth and address, in addition to more detailed financial information, such as your investment experience and your ability to handle risk in the stock market.

5. Confirm that all of the information on your new account is correct, and keep a file for your records. Usually, you will be required to deposit money before you make your first trade in a new account.

Tips & Warnings

• A recommendation from a friend is a good place to begin your research of firms and brokers.