Buying stock without broker

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.

Direct Investment Plans: Buying Stock Directly from the Company

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. If you are itching to invest your money, make sure to check out our great reviews on different ways to invest such as our Motif Investing Review.

With a house, you have to build a foundation first. Make sure you have those in place first before you go out and start buying stocks. The first place you can go is any discount broker. Sometimes you can open accounts and trade for free. Definitely read all the fine print and rules before you engage in buying stock from an online discount broker.

One website that has a lot of arrangements with a lot of different companies is Computershare. When I have clients that have a share of stock that they either inherited or it was given to them, quite often computershare. They will have to call them to liquidate it or to find out how many shares they own. Computershare just seems to be a common hub for a lot of these different companies.

They had the actual certificate, something we could frame and put it on the wall and have a keepsake. I was having difficulty trying to find a certain stock that I wanted to buy. Computershare has a relationship with a lot of those companies. You can go to computershare. You can sometimes buy stock directly from the issuing company, without using a service like Computershare.

This is mainly available with large, well-established companies. You can find out if the company offers the service by contacting their investor services department, which you can usually find on the company website. And some companies will even allow you to sell your shares back to the company. When you participate in this plan, your dividends are automatically reinvested in buying additional shares of the company stock.

This is a way to build a long term position in a company that you are committed to holding an investment position in for a very long time. Yet another advantage to investing in funds is that you can buy and sell them just as easily as you can trade individual stocks. You can buy them through a discount brokerage firm, as listed above.

But you can also buy them through mutual fund families, such as Vanguard and Fidelity. Those are two of the largest mutual fund companies, but there are dozens of others to choose from. Fund Families. Index Funds vs. Actively Managed Funds.

There are two general types of funds to be aware of, index funds and actively managed funds. Index funds are more typical for ETFs. Since they invest in an index, the individual securities within the portfolio are traded only when the composition of the index changes.

Since that is a relatively rare event, index funds have very little stock turnover, which means that their investment expenses within the fund are very low. Actively managed funds are typically mutual funds.

They tend trade a lot more than index funds, and have higher investment expenses. For this reason, index funds often outperform actively managed funds, and are probably the better choice for most investors. Load Fees. They can be charged upfront known as front end loads or upon sale backend loads , and sometimes both on some funds. Loads are high, which is why you should favor no-load funds.

A group of online, automated investment platforms have developed in recent years, commonly known as robo advisors. You set your allocation with the robo advisor — which they take care of for you — then your money is automatically managed and invested by the platform. There are now dozens of robo advisors available, but one of the most popular — and well-regarded — is Betterment.

They will provide professional management for your investments, for a fee of between 0. See my full review of Betterment for more details.

That can be intimidating for a lot of people. You have to open up an account online and send some money to some faceless operation. The other option you have is you could go to a local investment house, local stockbroker and buy stock through them.

They can share their expertise of what you think is going to make you a lot of money, if it really is. Also, you have somebody that hopefully is going to educate you in having that foundation set. The higher transaction you go, the more shares you buy, or the higher the share price is will then determine how much the commission is going to be.

Be conscious of that. Those are some of the different options you have. If you want to buy stock, you can go online to one of the online discount brokers or go to computershare. Then, when you shop around I would maybe interview one or two different brokers just to see what would be the potential cost to do so.

I would just say,. Make sure you read the fine print before you proceed and make that initial investment. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment s may be appropriate for you, consult your financial advisor prior to investing.

Think of all those people at Enron! Buying individual stock and often mutual funds other than the general index funds is at best partially speculative. It is safer to keep your basic investing in a solid Roth IRA and look at any other investing as a fun game with extra money. Great advice Jeff! I have many friends who do exactly what you mentioned. Sadly enough — they listen. Get burned. People need to use more common sense when it comes to investing.

Everyone wants to hit the home run without going through batting practice. Do your research. Become familiar. If you want the truth. Investing without a broker has its advantages and is definitely well worth it if you know what you are doing. Thanks for the post. They can. Your email address will not be published. All written content on this site is for information purposes only.

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Reader Comments just a question now if i just want to trade stock and buy do i have to use Etrade and othere Corporation to buy and trade. Absolutely true, Jeff. Leave a comment Cancel reply Your email address will not be published. All Rights Reserved. Disclaimer Privacy Policy.

With Best-in-Class Trading Tools & No Hidden Fees, Trading Anywhere Else Would be Settling. Use a Transfer Agent like Computershare – high commissions.

If you felt burned by the stock market following the financial crash of , you are not alone. The financial crash of left many wary of investing in the stock market and working with stockbrokers. In recent years, however, the investment landscape has undergone a transformation. Between the internet and numerous investment apps, it is possible to purchase stocks directly online without a broker. As a result, you have more flexibility in what you trade, when you trade and how much you pay in fees.

You can generally buy and sell stock without a broker if you trade directly with the company issuing it through a direct stock purchase plan.

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How to Buy and Sell Stock Without a Broker

In order to buy stocks , you need the assistance of a stockbroker since you cannot usually just call up a company and ask to buy their stock on your own. Full-service brokers are what most people visualize when they think about investing—well-dressed, friendly business people sitting in an office chatting with clients. These are the traditional stockbrokers who will take the time to get to know you personally and financially. They will look at factors such as marital status, lifestyle, personality, risk tolerance , age time horizon , income, assets, debts, and more. Not only can these brokers help you with your investment needs, but they can also provide assistance with estate planning , tax advice, retirement planning , budgeting and any other type of financial advice, hence the term "full-service. In terms of fees, full-service brokers are more expensive than discount brokers but the value in having a professional investment advisor by your side can be well worth the additional costs.

How to Buy Stocks

Can you be an online investor without a broker? Direct investments are where you buy the stock straight from the company. Many direct investment programs are connected with dividend reinvestment plans DRIPs , where the companies let you use dividend payments to buy, or reinvest, additional shares. Potential commission savings: The fees charged by direct investment programs can be lower than what some brokers charge. Dividend reinvestments: Dividends can be reinvested for free. Not free for all transactions: Some companies even charge commissions that exceed what deep discount brokerages charge for certain services. Setup fees: Although opening a brokerage account is usually free, some direct investment plans charge a fee to get started. Some plans also have minimum initial deposits.

Why Zacks?

Call the company, talk to their investor relations person, and ask who the Transfer Agent for the stock is. The Transfer Agent is the person who accomplishes the transfer, i. The name of the Transfer Agent is probably printed on your stock certificates, but it might have changed, so it is best to call and check.

How to Buy and Sell Stocks on Your Own

You can set up an account by depositing cash or stocks in a brokerage account. If you prefer buying and selling stocks online, you can use sites like E-Trade or Ameritrade. Those are just two of the most well-known electronic brokerages, but many large firms have online options as well. The broker executes the trade on the your behalf. In turn, he or she earns a commission, normally several cents per share. Online trading sites typically charge lower commission fees, because most of the trading is done electronically. A limit order is when you request to buy a stock at a limited price. While purchasing stocks through a broker has its advantages, there are other ways to buy stock. You can purchase stocks directly through the company. Buzz Fark reddit LinkedIn del.

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Company Filings More Search Options. Many companies allow you to buy or sell shares directly through a direct stock plan DSP. You can also have the cash dividends you receive from the company automatically reinvested into more shares through a dividend reinvestment plan DRIP. Direct Stock Plans — Some companies allow you to purchase or sell stock directly through them without your having to use or pay commissions to a broker. But you may have to pay a fee for using the plan's services. Some companies require that you already own stock in the company or are employed by the company before you may participate in their direct stock plans. You may be able to buy stock by investing a specific dollar amount rather than having to pay for an entire share. In that case, you could have your checking account debited on a regular basis to make investments in the plan. Some plans require a minimum amount of investment or require you to maintain specific minimums in your account.