How to buy stock online without a broker

While many investors choose to buy and sell investments through a brokerage account , some investors may wonder how they can buy stocks without a broker. Direct investment plans offer the brokerage alternative that those investors are seeking. If your primary investing goal is to acquire a single company's stock as directly as possible, one of these plans can help you achieve that goal, but be aware of the drawbacks that come with avoiding brokerage services before you abandon them completely. Often, the easiest method of buying stocks without a broker is by participating in a company's direct stock plan DSP.

How To Buy Stocks Online Without A Broker [21 Tips]

In most cases, the buying and selling of stocks takes place through an intermediary agent known as a broker. For a fee, the stockbroker listens to your wants and needs, gives stock market investment advice , and then takes your financial capital and buys or sells stocks to try and help you make the most out of your investments. For most investors, this method works just fine.

However, for one reason or another, some people prefer to buy stocks without a broker. For example, non broker intermediated transactions may have cheaper or no commissions. There are actually three ways methods of buying stock without a stockbroker. See also: stock trading definitions. The rise of the internet has affected just about every single aspect of life, and financial trading is no exception.

In the past twenty years or so, online stock purchasing has grown into a multi-billion dollar venture, with many companies leading the way. This has happened because these online trading companies have made buying stocks incredibly easy and affordable. Most of them have graphs and charts to help you do your own research, they give you advice as well, and best of all: they charge a very minimal fee, usually amounting to nothing more than a few dollars per trade.

Online trading is mainly for the self directed investor. Although the online broker may seem to act like a traditional broker, most of the buy and sell matching is done via computer without human intervention.

Most online brokers also offer traditional human brokers that you can call or meet for a more hands on investment experience. See also: how to invest in stock market. With a DSPP, you choose a company to invest with.

Every month, you pay a set amount of money to the company in exchange for however much stock that happens to buy at that time. This transaction is automatic. See also: exercise of warrants effect on share price. With a DRIP, though, rather than using capital to purchase stocks, you are using the dividends paid out from the stock you already own. So, if you own stock in Company X, rather than collecting the dividends and putting them in your bank account, you simply direct them back into the company and use them to buy more stock.

Like DSPPs, you can set these up to happen automatically, which results in less hassle on your end. As you can see, there are several different methods of buying stock without a broker. Whichever one you choose, however, make sure you do you research to look at the advantages and disadvantages of each.

Stock Rover Review. Become a Premium Member. See also: stock trading definitions 1.

You can buy stocks without a broker by taking advantage of direct stock their commission fees for online trades.7 8 It's now just as cheap to acquire stock. Today, the easiest option is to buy stocks online through an online stockbroker. Opening an online brokerage account is as easy as setting up a bank account: You.

The Johannesburg Stock Exchange JSE is renowned as the best stock market in Africa, delivering exceptional returns for investors and traders. However, for people looking to enter the exciting world of trading and investing in shares , knowing how to buy JSE shares can be a daunting prospect. But how do you go about selecting the best JSE shares to buy? There are plenty of JSE shares under R10 in price, and these are a good start for new investors looking to invest a relatively small amount. You could also decide to invest in penny stocks, which include JSE shares under R1.

Instead, all you need to do is push a button to trade stock. You can bypass a broker and buy stock by using a transfer agent, but the costs can be high.

Enter your mobile number or email address below and we'll send you a link to download the free Kindle App. Then you can start reading Kindle books on your smartphone, tablet, or computer - no Kindle device required.

Best Online Stock Brokers for Beginners

Advertiser Disclosure: The credit card and banking offers that appear on this site are from credit card companies and banks from which MoneyCrashers. This compensation may impact how and where products appear on this site, including, for example, the order in which they appear on category pages. Advertiser partners include American Express, Chase, U. Bank, and Barclaycard, among others. Do high brokerage costs deter you from investing in stocks of financially stable, profitable companies? Once companies list on a stock exchange, they employ the services of a transfer agent, who handles all administration related to share transactions — most listed companies use Computershare to provide these services.

Follow the Author

Why Zacks? Learn to Be a Better Investor. Forgot Password. When you use a broker to buy stocks, you put your trust in someone else. Stories of broker fraud only boost those fears. The good news is, you can purchase stocks in a company directly, without help from a broker, saving money on commissions and leaving the control in your hands. You just have to know how to participate in a direct stock purchase plan. You can invest in companies directly through a direct stock purchase plan, using a site like Computershare. You can also use discount brokers or participate in a dividend reinvestment plan to enjoy reduced costs.

In most cases, the buying and selling of stocks takes place through an intermediary agent known as a broker. For a fee, the stockbroker listens to your wants and needs, gives stock market investment advice , and then takes your financial capital and buys or sells stocks to try and help you make the most out of your investments.

Young investors are understandably wary about investing in the stock market. The financial crisis of severely disrupted our formative professional years, and its spectre still lingers a decade later.

How to Buy Stocks Without a Broker

We recognize that we all are living through a particularly volatile time as we deal with this global crisis, and financial markets have also seen unprecedented change, impacting all investors. Our mission has always been to help people make the most informed decisions about how, when and where to invest. Given recent market volatility, and the changes in the online brokerage industry, we are more committed than ever to providing our readers with unbiased and expert reviews of the top investing platforms for beginning investor. In our list of the best brokers for beginners, we focused on the features that help new investors learn as they are starting their investing journey. Brokers were selected based on top-notch educational resources, easy navigation, clear commission and pricing structures, portfolio construction tools, and a high level of customer service. Some brokers also offered low minimum account balances, and demo accounts to practice. TD Ameritrade, one of the largest online brokers, has made a priority of finding new investors and making it easy for them to get started. TD Ameritrade is also very welcoming in terms of test driving the platform without making a commitment. The education offerings are well designed to guide new investors through basic investing concepts and on to more advanced strategies as they grow. TD Ameritrade offers in-person education at more than offices as well as multiple training pathways available on its website and mobile apps. The TD Ameritrade Network offers nine hours of live programming in addition to on-demand content. The well-designed mobile apps are intended to give customers a simple one-page experience that will sit well with a younger, mobile-first crowd.

Member Sign In

They called to ask me a question that I just figured everybody knew. It was such a basic question when it comes to my profession that, like I said, I just took for granted and thought that everybody knew how to do it. The question was,. To give you some background on the person that called, they were in a K so they were investing for their retirement, but they never actually had gone out to invest into individual stocks. There was a certain stock that they were hot on and thought that they could make some money on so they wanted to go buy it. I gave her a few different places that she could go to do her own research and buy the stock.