How to Buy Stocks Online for Cheap
Buying securities online is relatively easy and takes two to five business days. Online brokers charge the lowest commission rates and rarely charge additional fees.
In order to buy securities with minimal fees, avoid using margin, which charges an interest rate. Margin means buying shares using funds you borrow from your broker.
Consider your investment goals before buying stocks. Peter Lynch, a financial advisor, advocates never to invest money if you may need that money back in six months or less.
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Instructions
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Research various online brokers to determine which one suits you. Online brokers charge different commission rates and fees depending on the services provided and the account size. Thoroughly research the portfolio size required to open an account.
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Request an application and any additional required information. Many online brokers also provide online applications, which take significantly less time to process. At this point you should have a list of potential securities to buy.
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Gather all required account information to fill out the application. All brokers require a valid photo identification card, a completed W-8 form and a social security card.
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Fund the account through a debit card, money wire or check. This process takes one to three days due to security clearances.
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Buy the securities once the account is fully funded. If the account is not yet funded, the broker may charge interest.
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Resources
- Photo Credit stock chart with a pencil mark image by Dmitriy Lesnyak from Fotolia.com
