A lot of people often wonder, ” how do I actually buy stocks?” This question can certainly be daunting, as the stock market appears to be a rich mans game. This negative sentiment is a leftover from trading in the latter century. I affirm that buyins stocks is easier than ever with the prominence of discount and premium brokerage services.
Buying a share of stock, whether it be common or preferred, seems like a daunting task to those who have never owned stock before. But to put it quite simply, stock is nothing more than a piece of paper resembling a portion of ownership in a company. Most big-time firms will issue stock in order to raise cash, so if they have cut up 100 shares and you buy one… you essentially have 1 ownership in that company! Cool huh?
Rather than buying the paperwork directly, most investors nowadays turn to stock brokers. What is a stock broker? Think about a broker as somebody who orders the shares you want, does all the paperwork for you, and keeps track of your money, your earnings and your losses.
Picking a Broker: Discount Brokers The most popular option for investing today is through a discount broker. These typically have a low minimum deposit and low trading commission fees. Here are my favorite three:
1. Scottrade This is the broker I use to make my trades. They are known for having the best customer service in the business, and very favorable pricing for beginning intermediate buyers. Trades are all just 7, including stock options. The minimum deposit is just 500, so anyone can put money in. Plus, they are the only major broker that hasn’t been hacked in the recent wave of phishing attempts. I trust them more than anyone else because they offer a sense of security. Customer service is very helpful and their trade execution time is apparently the best of all discount brokers. If you want to sign up, let me know so we can both get 3 free trades!
2. E-Trade These guys have a lot to their name. Even after their own stock was hit hard last November, they have managed to maintain their customers and continue offering value. Minimum investment at E-Trade is 1000, still very low, and they give you 100 free trades during your first month. Your first 1, 500 trades of each quarter are just 7, increasing incrementally after that. The company is stable, and you can definitely count on their security and reliability as brokers. I think that their rates aren’t as good as Scottrade, but a terrific option nonetheless.
3. TD Ameritrade This broker is a bit more pricey as far as discount brokers go. The minimum for a cash account is 2, 000, but you get their excellent” StrategyDesk” tool as an incentive. Their current promotion is 30 days free trades 100 back. Trades are just 9. 99 every time you place an order. As far as discount brokers, TD Ameritrade is probably the most prestigious with one of the largest networks around. You may be paying a few dollars extra, but the service and quality cannot be denied. They currently offer an” asset protection guarantee” on all of your information and money.
Picking a Broker: Other Brokerage Options There are some relatively new trading services that offer trades around 5 each like TradeKing. com and ShareBuilder. com, there’s even the 0 fees from Zecco. com! In a nutshell, I would rather trust an established broker with fees than mess with the uncertainty from these super-discount brokers… but judge for yourself if you want the savings. Premium brokers are much more for the experienced investor, so I am not going to go into detail about them. If you are interested in higher-end services, I suggest Charles Schwab, which straddles the line between discount and premium services.
In short, to trade stock you will probably want a stock broker to handle all of the messy paperwork for you. Choose your favorite, deposit money into your account, and start investing like a pro!
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CWR co-hosts Bill Baue and Francesca Rheannon speak with Eric Cohen, president to Investors to Slip and Tim Smith, senior vice president at Walden Means They and joined by captain of the Friendly Fashion Forum, about the campaign promoting targeted sacrifice to popular means for companies supporting the Khartoum government in the Sudan. Smith, who helped pioneer the use of shareholder activism encouraging companies in order to pass beyond sustainable and responsible practices as a author of the Interfaith Center on Joint Commission, discusses the novelty and efficacy on taking public funds, which has rarely been finished yet. Cohen explains the strategy in-depth, noting that the SEC upheld its power by mutual fund huge Fire challenged him legally. Him and cites a 2007 head to which 71 of respondents said that mutual fund companies must cover all cases of human rights abuses but investing overseas, rather than make their investment decisions of trade criteria alone. ListenInvestors against GenocideFidelity Confirms Back to Genocide-free InvestingWalden Asset ManagementSocial Investment ForumInterfaith Center on Corporate ResponsibilityJuly 5, 2006 part of CWR: ” Sudan Divestment” May 22, 2007 SocialFunds article: ” Fidelity Divests Great Number of Sudan-Related Holdings” July 21, 2006 SocialFunds article: ” Filing Resolutions at Public Funds: The Then Start to Shareowner Activism?” March 9, 2006 SocialFunds article: ” Sudan Presents Foundation Play so Genocidal Regime and Common Bond of Terrorism” June 1, 2005 SocialFunds article: ” Students and States Seek to Finding Fault with Soudan With Divestment Campaigns” December 10, 2004 SocialFunds article: ” Divesting For Evil: A Information about Eric Reeves of the Divest Soudan Campaign” December 14, 2004 SocialFunds article: ” Divesting for Evil: A few Words to Eric Reeves of the Divest Soudan Campaign”.