How to Buy U.S. Stocks Without a Broker

You can buy stocks without a broker

Stocks can be an excellent investment, but the costs associated with buying and selling company shares can be high for those just getting started. Even though online brokers have brought down commissoins on stock trades, even those low commissions can add up over time. Fortunately, there is a way to buy many stocks without using a broker at all.

Instructions

1. Pick up a copy of a financial newspaper like the "Wall Street Journal," "Investors Business Daily" or "Barrons." Review the information and the articles for ideas on which stocks to buy.

2. Make a list of stocks you are interested in buying. You might want to invest in the stocks of companies whose products you use and like or in companies that appear poised to profit from future trends.

3. Log on to the website of each company you are interested in and search for the "Investor Relations" link. If the company offers a direct stock purchase plan that information should be listed under the investment relations section. Many companies allow investors to sign up and buy stock directly on the site. Others use services like Compushare to administer their plans.

4. Choose the stock or stocks you want to purchase directly, then complete an application for the firm's direct stock purchase plan. Send a check for your investment, along with the completed form, to the company. The firm will use the money you send to purchase the stock, with any money left over being placed in a cash account for future purchases.

5. Log on to your account by going to the company's website and choosing the "Investor Relations" link. Enter the logon ID and password you created when you set up the account, then choose the settings you want to use. For instance, you can have your dividends reinvested in additional shares or paid to you in cash.

References

• Wall Street - Direct Stock Purchases
• Comcast Investor Relations: Manage Your Account

Resources

• Compushare Website