How to Invest in Stocks Online
Not just limited to private sales, bitcoin is slowly starting to be accepted across America, and the world, by realtors. However, for the realtor investor or those who wish to turn their cryptocurrency into a tangible investment, many things need to be considered beforehand. Such a cryptocurrency volatility, land volatility, exchange rates, taxes, and more. Of course, as time goes by, and the economy undergoes various fluxes, it is evident that stocks are the best way to “save” your money until when needed.In this article we’ll outline a few ways in which you can invest in stocks online.
Investing in stocks online can be done though a broker or without one. When you decide to eliminate the middleman (i.e the stock broker), you are leaving yourself open to some risk. However, if you take adequate caution and know what exactly it is you want to invest in, and research on how to get it done properly you should be fine. Including a middleman means that a portion of your earnings will be allocated to the stock broker as his commission for helping you carry out the trade successfully.
INVESTING IN STOCKS ONLINE
- Set Up A Brokerage Account
A brokerage account is opened by an investor –to-be after making arrangements with a licensed brokerage firm to allow the investor deposit funds into the account under the firm and place investment orders with the account. In layman, it is the account you use to buy and sell stocks online. There are a good number of brokerage firms that provide an online platform for investors oversee their brokerage accounts, such as Charles Schwab and Smith Barney of Citigroup. These firms, however only let you see what’s happening with your account as opposed to using it to buy and sell stocks. Sites like E-Trade and Ameritrade provide a platform for future investors to create an online account, and use it to buy and sell stocks as you please.
- Hire A Stock Broker
After setting up your account, if you are new to the world of investment or online trading, then it is highly advised that you utilize the services of a stock broker. A stock broker gets paid in commission after successfully helping you to buy a stock, or place an investment within a company. All you need to do is tell you stock broker the number of shares you want, and where you want it from. When he is done, and if all goes well, he gets paid in commission, which is usually not more than a few cents per share.Employing the services of a stock broker is not always necessary. So if you’re confident with your stock market knowledge and experience, then you can visit DRIP Investor, which provides a list of companies that allow you to buy stocks from them directly.
- Buy Your Stocks
After deciding where you want to get your stocks from, and how much you would like to get you will then have to decide the price you want to get the stocks at. There are two types of orders: a market order, or a limit order.
A market order is an order made on stocks at the current stock price on the market. I.e if the stock you want is going for $50 per share, you are going to buy a single share at $50.
A limit order is an order you make when the market price comes down/reduces to the limit you can afford. I.e if the current market price is $50 per share, and you can only afford $40 per share, then you’ll need to wait until the stock reduces to $40 per share because making your purchase.