With the use of the internet, consumers can now set up their own brokerage accounts to buy and sell stocks without the assistance of a broker.
However, with the current market volatility being what it is, many people feel more comfortable using a broker. You are the only one who knows your financial savvy and comfort level when it comes to investing. Therefore, you are the only one who can answer the question of whether or not you need a broker. If you feel you are comfortable investing on your own, there are steps that you can follow to trade your own stocks.
The first step is to choose an online trading company where broker assisted trading is not required. There are many to choose from in today’s market. More familiar names include TD Ameritrade, Charles Schwab and ETrade. However, there are other reputable sites available as well. Some people choose companies based upon name recognition, but that may not be the wisest course of action. Be sure to do your research to determine the company that is right for you. Sites that charge less for trade fees may be able to do so because they charge higher amounts for the initial set up fees for the account, or for monthly maintenance fees. Some sites may require you to deposit larger sums to fund your account.
Once you determine the company you wish to use, you may then set up and fund your trading account. Funding an account means placing the money within the account in order to begin trading. Each investment site will provide you with step-by-step set up instructions. Once you have set up your account, you will need to mail a check or transfer the funds necessary to fund your account.
If you are new to the world of investing in stocks, you may wish to familiarize yourself with financial and trading terminology in order to maximize your investing success. You may also want to watch stock investment shows on television such as Fast Money and Mad Money. Watching these shows may help you gain a further understanding of the investment world. However, as with any financial advice you may receive, do your own homework, and don’t just rely on what others tell you when it comes to investing.
Another option for investing is to purchase stocks directly from a company. Many large companies have this option available, allowing you to purchase their stocks directly without the use of a brokerage firm.
If you find you are interested in buying and selling your own stocks, acquaint yourself as much as possible with the market, online trading sites and the companies whose stocks you will be trading. It is possible to become a successful investor without a broker if you are well informed.