How to Buy Stock Without a Stockbroker
So you've determined what stock you want to put your money in, and now it's time to place the order. However, you would prefer to avoid some of the transaction fees that go with buying the stock through a stockbroker. If you're flexible, some options are available. Most promising are direct stock purchase programs, which allow you to purchase stock directly from the company.
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Instructions
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Many large companies, like General Electric, Intel and Procter & Gamble, have programs that allow investors to purchase stock directly. Often there will be a one-time setup charge for the account, as well as a minimum investment. Go to the company's website and click on "Investor Relations" to see if there is a direct purchase program. You can also go to Directinvesting.com for a list of available programs.
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Go to ShareBuilder.com. While this is an online stock brokerage, it operates a little differently from the typical brokerage. There is no minimum investment, and commissions are as low as $4 a trade. You can also invest in ETFs (exchange-traded funds).
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Go to Buyandhold.com (http://buyandhold.com/bh/en/). This is an online brokerage that works on a subscription basis. Instead of paying broker fees, you pay a monthly service charge, which includes a certain number of trades. Plans range from $7 to $15 a month.
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Purchase stock directly from a friend, family or colleague. You will need to write a stock transfer letter and possibly fill out a form to the stock's custodian (a financial institution) notifying it of the change in ownership. See Resources for a sample letter.
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