Buy Shares Online Easily
Every time you have seen companies announce their financial reports probably gave you the fear of missing out (FOMO). Perhaps you even counted how much you could have made if only you had bought those shares. Well, the good news is that it’s never too late to start buying shares and make a killing. Even better, it can all be done online from the comfort of your home at any time; or even from your smartphone.
All you need is the right information on the best stocks to buy, which you can get through BuyStocksEasy. Our experts are always on the lookout for potentially profitable stocks for our visitors so that you don’t have to spend a lot of time researching over 600,000 stocks available worldwide. Moreover, you will also know the best time to buy a particular company’s shares to avoid drawdown. By the end of this piece, you will be ready to become an investor regardless of your location and start enjoying your returns.
How to buy shares online
There are 3 main ways you can buy shares online – from a broker, mobile apps or as CFDs. Occasionally companies offer direct stock purchase plans, but this option is not always open when you need it. That is why we will only focus on those strategies within your control.
Buying stocks from online brokers
In October 2017, Hong Kong Exchanges & Clearing (HKEx) finally shut down its trading floor for good. More than a decade earlier in 2006, the trading floor was reduced to a third of its size down from its original 45,000 square foot area. This followed a report by the exchange that floor transactions accounted for a mere 0.2% of the total trading turnover. Nevertheless, the exchange still continues to thrive thanks to online stock brokers. Although many major exchanges are yet to do the same, the number of floor brokers has been decreasing all over the world while online broker numbers continue to rise. It is now only a matter of time before even the NYSE trading floor is empty.
This presents an opportunity for you to buy shares online rather than having to deal with actual stock brokers. You probably already know the benefits of trading online over physically, which is why you’re reading this, so we shall not get into that right now. Instead, we are going to tell you how to go about it the right way. Remember that just because it’s advertised as being so easy, you still need to be careful in order to avoid falling into the hands of scammers. The Best Trading Brokers provides insights about who these brokers are and help you choose the best one.
That is indeed the first step to buy shares online – picking an online broker. There are many brokers who will advertise but ultimately it will be your decision. However, some of the qualities you ought to be looking for include:
Whether the broker offers what you need
This may sound obvious, but in stock trading, it may be a bit more complex. For example, one broker may provide downloadable trading platforms for install on your computer while another may not. This means that the former broker gives you access to a lot of trading tools to help you analyze the markets while the latter does not. That does not necessarily make the latter broker superior, because while these tools are convenient, they also often come at a cost. A seasoned trader would be willing to take the additional cost for the benefit of these tools, but a newbie trader who doesn’t know how to use those tools will only incur an additional cost for nothing in return.
There are many other similar situations you will find when comparing brokers such as investment advice, access to leverage, number of stocks, etc. All of these come at a cost yet not all of them will benefit everyone. To become a great investor, you have to know precisely where to allocate your resources and how to maximize returns. And that is why it helps to know what you need before spending money for no reason. Through The Best Trading Brokers, there will be no question your money is not going to waste.
How legitimate is the broker?
Everyone knows about the famous Bernie Madoff Ponzi scheme, but every year there are multiple similar scams that are carried out. Just last year, the SEC charged 5 brokers for a Ponzi scheme worth $1.2 billion. These brokers managed to scam investors of their billions while operating without a license and now those investors cannot receive their money because the companies filed for bankruptcy. This is often the case whenever a scam is discovered, which is all the more reason for you to ensure the broker you choose to work with is legitimate. The Best Trading Brokers will help direct you to the most trusted brokers to avoid losing money.
What are their charges?
Of course, these brokers are going to charge you for the service, the question is how much. Naturally, everyone wants to cut down on costs but it isn’t that straightforward. One has to weigh the cost against the quality of service. It’s like going to a 5-star restaurant – expensive but well worth the cost for top notch food and service. When it comes to stock brokers, you will need to do the same because a cheap broker can sometimes lead to more losses down the road. Therefore, make sure that the broker can provide you with the best products and services at a reasonable price friendly to your wallet and needs.
Once you have sorted out the many brokers available to you, the next steps are to register for trading and funding that account. Both of these steps are very easy because the entire process is done online. You will register your account by providing your personal information and validating your identity. Brokers are required by law to do this under the Know Your Customer (KYC) policy to prevent fraud, money laundering, and other nefarious financial activities. We only say this so that you’re not alarmed when the broker requests for your identification documents. As for funding your account, there are many ways to do so depending on the amount of money being transferred and what you are most comfortable with. For huge amounts of money, wire transfers are always accepted, but your credit card should do when you only need to deposit smaller amounts.
That’s it! Now you’re ready to begin buying shares online. The best brokers also provide demo accounts to practice on. These are similar to actual accounts, except that the capital is virtual and only meant for practice. This is a good way to find out if you are ready to start trading with your actual hard-earned money and to find your way around the trading platform(s). Try taking suggestions from the BuyStocksEasy website and use them on your demo account to see just how much you have missed.
Using mobile apps to buy stocks
Since online stock trading became very popular, there arose a need for ‘smaller’ investors to participate. Coupled with people’s distrust in banks, many FinTech companies stepped up and created mobile apps to address their needs and the FinTech industry has grown significantly since then. Consultancy Europe recently reported that investment in FinTech companies more than doubled in 2018 to reach $112 billion. These mobile apps not only give everyone access to the stock market, but they also need very little capital and make use of Artificial Intelligence (AI) to analyze the markets and provide trading insights.
There are 2 basic categories of stock-trading apps:
These companies use AI to analyze markets and then buy baskets of stock as ETFs. As an investor, you select which ETF to invest in based on your risk appetite – riskier ETFs have potentially higher returns and vice versa. Some of these are:
- Wealthfront – since it was launched in 2008, it received funding from VC firms such as Greylock Partners and Benchmark Capital and it now has over $11 billion in AUM
- Betterment – with AUM above $16 billion, it is among the top robot-advisors yet with very favorable trading conditions
- Stock trading apps
If you instead want to pick your own individual stocks, then these apps are for you. Once again, they have low trading fees for ‘smaller’ investors including:
- Robinhood – it was launched in 2013 and now valued at $5.6 billion
- Acorns – since 2012, it now has 3.4 million active users
How to know what shares to buy
This is the most difficult part about investing in shares because it determines whether you end up winning or losing. To determine the best shares to buy, you basically have to analyze a company’s performance using various economic measures. From the financial reports, you can determine how profitable the company will be in the future. But this is all quite complicated requiring plenty of calculations, which you can all find at BuyStocksEasy. Here you will find calculators that determine a company’s financial status on the short and long terms depending on what you prefer. Finding the best stocks isn’t hard either as you can use our search engines to find any company you have your eye on. Don’t waste too much time doing the heavy-lifting when it’s already served on a silver platter.
How to buy shares in the UK
For UK residents, it is important to ensure that the stock broker is licensed by the Financial Conduct Authority (FCA). This is the financial regulator in the UK and is mandated with overseeing all financial service companies. The main role of the regulator is to prevent brokers from defrauding their clients, which it does by monitoring their activities. The FCA is well known for being an effective regulator, and you can feel safe f your selected broker has a license from them. To confirm, you can search the FCA website to check the status of the broker.
All licensed brokers are also required to keep their customer funds in a segregated account so that the money is always safe even when the company goes bankrupt. For additional protection, they also offer a Financial Services Compensation Scheme (FSCS) to help.
All the same, you don’t have to limit yourself to UK-registered brokers if you can’t find one that suits your needs. You will not be penalized for investing through an offshore broker in, say, the US, but you have to be prepared to cover the exchange rate costs from sterling pounds to USD and vice versa. Lastly, earnings are required to be reported for taxation as capital gains tax.
How to buy shares in Australia
The financial regulator in Australia is the Australian Securities and Investments Commission (ASIC). Once again, online stock brokers who operate in Australia need to be licensed by the body, but the law does not expressly prohibit residents from trading with offshore brokers. On the plus side, some of the world’s best online stock brokers are also licensed by ASIC, so there is no shortage of legitimate brokers to choose from. Some of them include Interactive Brokers, IG Group, CMC Markets, and Westpac. When trading US stocks, though, you may notice that some order types are not available due to the difference in trading hours, and many traders opt for US-based brokers.
How to buy shares in the US
Having the most robust stock market, buying stocks online is very easy. Furthermore, there are already numerous brokers in the US. The best brokers, however, are those who have been licensed by the (Securities and Exchange Commission) SEC and a member of the Financial Industry Regulatory Authority (FINRA). You can look up any registered stock brokers on the FINRA website to confirm their authenticity before starting to trade. Some of the leading brokers in the US include Fidelity Investments, TD Ameritrade, Interactive Brokers, etc. The regulatory environment in the US is also one of the most strictly controlled, keeping investors mostly safe from scammers. It is only when traders deposit their money with unlicensed brokers that problems arise, which is the opposite of what you should do. Through BuyStocksEasy, you will be able to identify the best US shares to buy and make a great return.