How to buy stocks online
There is no doubt the stock market is one of the best ways to make money. You probably know several people who became rich through stock trading, and you can be one too. Furthermore, it’s not as hard to buy stocks today as it was in the past. With the advent and spread of the internet worldwide, anyone can now buy stocks online. While that may be true, it’s not enough to make you a successful investor.
To really succeed and make money, you need a partner to help you navigate the world of stock trading. A quick google search will show you that there are over 600,000 publicly traded companies! That is a huge number of stocks to analyze and pick one to invest in. At BuyStocksEasy, this is exactly what we do – help you to select the best stocks to invest in. on our website, you will find everything you need to know about the best-performing stocks and use our calculators to estimate your potential earnings. In this particular post, we shall start by showing you how anyone can access the stock market and a few stocks you should be looking at. Afterward, use the best trading brokers to start immediately.
Where to buy stocks online
When we think about buying stocks, most people imagine the scenes shown on the news with crowds on the trading floor screaming orders at each other. The truth is that those are floor brokers – they too are buying stocks for other people. No one can actually walk into a stock exchange like the NYSE and buy stocks; you would have to go through a broker. How the brokers partner with the exchanges is another discussion we shall not be getting into today. For now, suffice it to say that everyone must go through a broker when looking to buy stock.
Nevertheless, the process has become a lot easier nowadays because these brokers have moved their business online. There are two main ways through which you could acquire stocks:
Using online stock brokers
There are many stock brokers offering their services through online platforms. Some of the best trading brokers include:
- TD Ameritrade – one of the most popular brokers with over 11.5 million client accounts and almost $1.3 trillion in client assets
- Fidelity Investments – managing $2.46 trillion in AUM, this is another popular online broker with even more favourable conditions than TD Ameritrade
- Interactive Brokers – handling the highest daily average revenue trades, IB is perhaps the most affordable online stock broker
These are just three of many brokers, and you can choose between any of them as long as your needs are satisfied.
Through FinTech companies
The above stock brokers usually have high commissions and require significant capital, which is where FinTech companies have stepped in. Some of these companies include:
- Wealth Front
All of these allow anyone to quickly sign up and start trading stocks. They don’t demand any minimum account deposit and their commissions are very low. They even use robo-advisors to assist new traders through automated trading by picking the best stocks as we do on BuyStocksEasy.
How to choose between the two
From the two options above, how can one choose the one most suited to them? Well, there are many criteria, but the main ones include costs, accessibility and extra features. When it comes to cost, of course you want to get the best deal, but not at the expense of quality service. For example, a broker like TD Ameritrade charges almost $7 for every trade while another like Robinhood doesn’t. On the other hand, the former offers a lot more stocks to buy, which makes TD Ameritrade more attractive when diversifying. Your choice would depend on where your priorities lie between costs and variety.
Other than costs, you will need to find out which broker has the best trading platforms that can be accessed from most devices. Access to margin is also great to have because it allows you to buy more stock’s worth than your capital would allow. Most FinTech companies don’t have this feature, while the major online stock brokers do.
What stocks to buy
Now that you know where to find the best stocks to invest in, it’s time to decide how to go about it. This is where things start to get really tricky, and any errors could lead to disaster. At BuyStocksEasy, we try to help investors from all levels achieve their goals by showing them various investment strategies.
Consider what your goals are
Some people invest to make quick profit, and there’s certainly nothing wrong with that. You probably know of some traders who made good profits within weeks of buying certain stocks. However, the most successful investors have been those who invested for a long term. Consider someone like Warren Buffett, probably the best investor of our time. He made his fortune by investing heavily in a few companies and watching them grow. He told CNBC that just a $1,000 investment on an S&P 500 index fund in 1942 could have turned into over $5 million today. Now that’s what a nest egg should look like!
But you don’t have to be like Buffett, as long as you can spot a good opportunity every so often. This is exactly what you can expect from the BuyStocksEasy website. Financial experts keep an eye on the industries and companies with the most potential so you always have a good opportunity to invest in. Regardless of your goals, you can always make money as long as you stick to your goals.
Combine both fundamental and technical analysis
The debate between fundamental and technical analysis still rages on. But rather than choosing a side, the best way is to make use of both strategies. Investors like David Tepper made huge profits through technical analysis back in 2009 by investing in bank stocks whose value had hit rock bottom and oversold. In that single year, he made $7 billion. The best trading brokers should provide live charts with current market quotes to help you do this. Meanwhile, traders like John Paulson made their fortunes by studying reports on the US housing market and shorting the market. Either way, you can make money; but it would be even better if both strategies were applied.
Study and research
Above all, the most important thing is to fully understand what you’re getting into. Patience really pays when investing in stocks as you try to understand a company’s financial performance. At BuyStocksEasy, we keep tabs on the best performing companies with details on their financial records and calculators to indicate potential profits. Through such tools, you will know exactly when to invest in which companies. Add to this, a variety of stocks help you diversify your portfolio and hedge against risk.
How to buy stocks online without a broker
Although stock trading requires a broker, there are certain circumstances where you may not need one. Such a way is by a Direct Stock Purchase Plan (DSPP) where a company sells stock directly to individuals. Another way is through the dividend reinvestment program where a stock’s dividends are used to buy more stock. Both of these methods are usually very cheap because there are no broker commissions, but it only happens occasionally.
Which stocks to buy today
Once you know how you can actually buy stocks, the next step is to identify which stocks to buy. As we mentioned in a previous section, there are different ways to choose the best stocks to invest in. If your intention is to invest in a company over the long term, then some of the safest stocks are those of Google and Amazon. As you can see from the BuyStocksEasy analysis, these stocks have declined in value recently, and as we all know – buy the dip. A company like Tesla, on the other hand, seems to have a lot of upside potential, but it could be a risky bet.