How to Buy a Stock Online

The most investors buy and trade stock through online brokers. Its simple you can set up an account by depositing cash in a brokerage account. You can find many firms who offer brokerage accounts that can be managed online easily or with a broker in person. If you prefer buying and selling stocks online, you can find many online trading sites. Also many large firms have online options as well. Once you have managed to open an account you can purchase directly online or you tell your broker how many and what types of stocks you’d like to purchase. The broker executes the trade on the your behalf. In turn, the broker earns a commission, normally percentage of per share. Online trading sites typically charge lower commission fees, because most of the trading is done electronically.

After selecting the stocks that you wish to purchase, you can either make a “market order” or a “limit order.” Stocks are not just pieces of paper they represent ownership of part of a company. The process of buying stocks is easier than it has ever been. There are so many brokerage firms that would be happy to open up a trading account for you; places where making a purchase is as easy and simple by just few clicks. But just because the process of purchasing equities is easy does not mean you should approach it as a simple, understanding the tools available and save thousands in opportunity costs.