Buy Shares Online

The old days of investing are gone, having been replaced by a new, innovative system of online investment. In the past, people who wanted to invest their money had to go through a lengthy process and enlist the help of a certified broker. They had to wait around for that broker and pay big fees for his services. Now, you can buy shares online with the click of a mouse. It can be done in real time, and the fees that you will pay will seem minuscule in comparison to some of the exorbitant brokerage fees of the past. The following is a guide to buying shares online.

Finding the right online broker
Just as you would shop around before selecting a human stock broker, you will want to put in some time researching the options before you commit to an online brokerage firm. There are plenty of things to consider. When you buy shares online, you will have to pay a commission for each trade, and some sites have lower fees than others. Additionally, you will want to have as many research tools as possible at your disposal when you make investments. This will help you make the best investment decisions. When you buy shares online, you have to choose the broker that is right for you. The following online brokers are popular today:

• E-trade
• Scottrade
• Sharebuilder
• Kingtrade
• TDAmeritrade

There are many more, as well, so make sure that you dedicate the necessary time to researching all of the options.

Funding an online investment account
There are strict rules to how money must be processed when you buy shares online. You cannot just use your debit card as if you were buying a cheeseburger. Instead, the money will need to be loaded through a wire transfer, a physical check, or some sort of electronic fund transfer. This is often one of the most cumbersome portions of the process, as investors have to dedicate a significant amount of time to funding their account before they ever get a chance to buy shares online. You will want to follow all of the rules and make sure that you are working with a legitimate broker throughout this process.

Doing the research
Before buying shares online, investors will need to research the various stocks and develop an investment plan. Deciding on your level of risk tolerance is the first step, then choosing stocks and funds is the next part of the equation. Luckily, the best brokerage sites provide research tools. You should learn how to read stock charts and you should take the time to study companies prior to buying shares. A comprehensive investing approach is always the best policy, as you will want to consider both the numbers and the surrounding news about a company.

Pulling the trigger
After all of the research is done, you will buy shares online right through the website. All sites offer real-time trading, while others offer weekly, planned investment periods. It is more expensive to buy shares online in real time, but this is the only way to take advantage of fortuitous pricing points.