Stock trading is easier than it sounds. Once you have a brokerage account, everything else is straightforward. There are several ways to stock trading online; scroll down to explore these options.
Open a brokerage account
The first step to buying stocks online is to open a brokerage account. A brokerage account is an online account where you can buy and sell stocks, mutual funds and other securities. You can open a brokerage account through various financial institutions, including discount brokers, banks and full-service brokers. To open your first brokerage account, you must provide personal information about yourself, such as your name, address and social security number. Typically, when setting up an investment portfolio for the first time at any institution, some initial fees are associated with opening that account. However, after this initial setup fee, there should be no additional charges unless you add additional funds or securities into your portfolio later on down the line.
Transfer funds into your brokerage account
To transfer funds from your bank account to your brokerage account, you’ll need to know the bank’s routing number (the 9-digit code above your checks) and account number. You can find these in the bottom left corner of a check or by calling your bank directly.
Research the stock you want to buy.
When you’re ready to buy stocks online, you should first research the company and its competitors. For example, you can find all kinds of information about a company on its website and on financial websites like Yahoo! Finance. However, if a company has good management and is profitable, it’s more likely to continue to be profitable in the future. When buying stocks online, keep an eye out for companies with steady revenue growth but spending less on new product development.
Choose how many shares you want to buy.
Now, you’re ready to choose how many shares you want to buy. To do this, go to the Quantity field and enter the number of shares you want to purchase. If you’re buying for the first time or are still determining your portfolio, starting with a small number of shares is wise.
Once that’s done, move on to setting up an order type and choosing an account type (if necessary) and your broker if it still needs to be selected.
SoFi financial advisors say you can “Trade Bitcoin, Ethereum, Cardano, Dogecoin, Solana, and 25 other coins on a safe and secure platform that ensures your holdings are protected against fraud and theft.”
Pick an order type and submit the trade.
After you’ve picked a stock, decide how many shares of it you want to buy—and at what price—you’re ready to go. It would be best if you made sure that the order type matches up with your goals and expectations (more on this later). Then all that’s left is hitting the Submit Order. That’s it!
Confirmation means waiting for a check or wire transfer if you’re paying for your trade with cash. Depending on where your bank is located, this could take anywhere from one business day up to several weeks; generally speaking, most banks will process wire transfers within 24 hours (or sooner).
Buying stocks online is easier than ever. With a bit of research and preparation, you can buy your first share of stock in no time!