If your new to the stock game, and your wondering how to buy stocks for beginners without a broker, you have come to the right place. And your answer is probably a lot simpler then what you might expect. Buying stocks through a broker is diminishing somewhat, but it used to be the only way to buy stocks. Now that we have the internet, we are able to bypass the traditional broker, and his crazy fees, and go straight to the source. So if your a beginner investor and you want to buy stocks without a broker, its actually very simple, and most likely the best way for you to go about investing in stocks, options, commodities etc… Lets take a closer look below at some of the specifics for buying stocks without a broker, as a beginner.
What Platform To Use As a Beginner
If your a beginner I would advise you to stay away from all the gimmicky forex and stock trading platforms, and try to find a solid reliable online trading platform. Some of the best ones can be set up through your bank. For example, TD Canada Trust has a web-broker that is very easy to set up (as long as you have a bank account with them) and also very easy to use, I would highly recommend them if your a beginner, its a great platform to learn on. Buying stock without a broker is a lot cheaper then the traditional way, but you will still be charged anywhere from $1 to $20 for a single trade.
If your more advanced, you can find some online trading platforms that will allow you to buy stocks with live features, such as moving charts, with live bids/ask stats, and much more. Back to the beginner aspects of buying stocks without a broker, once you have your account set up, its up to you to search for the stocks that you want to buy. Usually this is done by entering the companies ticker symbol, but can sometime also be found by just entering the company name.
Buying The Stocks Without a Broker
Once you have done all your stock research, and you have located your stock inside your online trading platform, you can then view the stats. Inside a very basic trading platform, like the one provided by your bank, you can usually view the stock chart in different views. The stock chart should show you the 5 year, 4 year, 3 year, 2 year, and 1 year history. Along with this information, you should also be able to view volume of the stocks and sometimes the bid/ask.
When your ready to buy the stock, you can put in your bid. You can make this bid anything you want, so if you want to buy the stock lower then it is, you can put in a low bid, although it may never get filed. If your confident enough and you want to buy the stock at the current price, just place a bid at the market value, your bid will then get “filled” and you will own the stocks. As simple as that!
Buying stocks as a beginner online also gives you many important options that are also available with a regular broker, such as a stop, which will automatically sell your stocks if they sink to the low price you have placed your stop at, which is very important to avoid huge losses. It may take you a few weeks to get used to everything, but once used to it, you will wonder why anybody would ever pay 5 times the price for a broker.
After making your first buy you usually have to wait 24hrs to see your new stock holdings in your online trading account. Congratulations you now have full control over your investment portfolio!