Buy Stocks Without a Broker

Even though the most employed and popular approach to buy and sell investments is to open a brokerage account, the truth of the matter is, it is not very necessary. Several investors do not know the alternative ways to procure stocks as well as mutual funds. While working with a skilled and qualified broker comes with definite benefits, in some instances, it would be more beneficial to buy stocks without a broker.

Here are some stock buying tips on how to analyze stocks and acquire them without a broker:

  1. Place your money with a firm that offers direct stock purchase plan – There are some companies that furnish direct stock purchase plans. These stocks to buy permit investors to purchase shares directly from the corporation. While many of them come with minimum initial deposit, for the most part, they are more than willing to waive such fees if you agree to make automatic monthly distributions from your savings or checking account. Through this, the firm automatically buys stocks on your behalf via debit from your bank account every month. This can be a relatively effortless and easy procedure to save both your time and money.
  2. Familiarize yourself with the DRIP program’s cash investment alternative – If the firm doesn’t present a direct stock purchase plan, determine if it offers a dividend reinvestment plan or DRIP. DRIPs are an excellent investment device for investment portfolio growth and they are also known for their diverse cash investment options. Most accounts permit you to forward a check in your preferred amount over $10 or $25 to the administrator of the program and they will buy additional stocks in your behalf. Buying stocks without a broker through this option permits you to obtain fractional shares, while your money starts building wealth.
  3. Purchase a single stock via a specialized service – Looking for ways on how to buy stocks without a broker will let you come across with companies that permit you to purchase a framed, single share of stock in several leading corporations. Though this may appear as a novelty gift, it grants the required requisite to apply in a DRIP. Once you get the share, your enrollment paper will only take a few minutes to complete. After you’ve applied, you can begin establishing positions in buying shares while preventing those huge and hefty brokerage commissions.
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Start Buying Stocks

If you plan to buy and trade stocks, you must pay attention to the stock traders commissions and transactions fees since they will eat away at your returns. The most popular option today for buying stocks without a full-service broker is to sign up for an online trading company.

Here is our list of Recommended Online Stock Trading companies:

Best IRA Company

For over 25 years, Scottrade has been the leader in the stock brokerage industry – and it’s for a reason. Scottrade provides a wide range of investment products to meet your investment needs and financial goals. Their fee per stock trade may be higher compared to others, but their service and support is great for beginners and have local branches you can visit to receive help and guidance to get you started.


TradeKing is an online broker providing low flat trading fees with no minimum account requirements and no hidden fees. TradeKing online brokerage accounts offer easy-to-use investment tools with low flat trading fees and no minimum account requirements.

Pointers to Remember

  • Numerous investment companies have catered to the demand of consumer to have the opportunity to trade stocks even without a broker. The great thing is that you can now open an online brokerage account and purchase and sell stocks on your own.
  • Use all the available resources. Look for an online trading company. There are several trading firms online that permit you to establish and trade stocks via internet. Make certain that you understand what you are paying for, including the account maintenance charges and per trade fees.
  • After setting up your account, it’s important to learn about the step-by-step procedure on how you will work on your account. You may be necessitated to transfer money or mail a check into your account for funding. Funding is the process of placing money in the account that you will utilize to make trades.
  • Research and study the good stocks that you want to house your money into. Many of these online trading websites also give out research materials so you can get educated on the bonds and stocks that you are interested in purchasing. These websites will assist you in understanding finance as well as trading terminology that you may be proverbial with. It is critical that you make educated and informed decisions to aid in minimizing the possibility of experiencing a financial loss.
  • Familiarize yourself with the ways on how you can buy stocks without a broker. When you are all set to purchase a stock, you will have to process your order. Keep in mind that each site is slightly different from others, though every site typically has line-by-line purchase “forms” that you should accomplish and then submit to be able to process the trade.
  • Use online stock trading companies to your advantage. Signup for Scottrade or TradeKing today and you can trade however you want for a low per-trade transaction fee.
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Lavern Maleszka
12 years ago

I like scottrade. I’ve been using them for a couple years and they are great. definitely meets my requirement to trade stocks online.