Do you have to hire a broker to invest in stocks?
Or is there a way to just buy the stocks directly?
Not investing, just trying to understand how it works.
- ?Lv 78 years agoFavorite Answer
To buy and sell shares in the secondary market (trading/investing) you need to go through a broker (or market participant). Otherwise it would be a right old mess! (think about it). In the primary market (companies raising funds for the first time) you could buy through a Public Offer for Sale. You just fill in a form and send off your cheque. But, of course, you cannot pick and chose your stocks. So, I'm afraid, and contrary to some beliefs, you need a stockbroker to deal in stocks.
Every trade in the markets is ;'trade reported'. That is reported back to the stock exchange (for various reasons, the main one being price transparency). How would they be reported if 'outside' the market? Also, what about settlement? Delivery stock and settling the money?
"no broker is needed...use Scottrade" ??
"absolutely not....contact Fidelity" ??
- Anonymous8 years ago
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- 8 years ago
You don't have to hire a broker, but you'll need a brokerage service.
You're going to need to set up an account with an online broker like Trade Monster, OptionsXpress, Etrade, etc. You'll buy stocks through their service and pay a service fee.
It sounds like you're new to this, so you may want to take some time to learn the ins and outs of investing before you drop money on this.
I recommend visiting www.investopedia.com to learn some basics. You're also going to want to do at least some basic research into what you're investing in. I recommend apps like Chaikin Power Tools and web sites like StockCharts.com.
You should also do a google search for "Free stock market simulator" - these will let you play around with fake money to see how well you do in the market before you get into it for real.
- kelby7670Lv 78 years ago
Absolutely not. They are very very expensive. There is a lot of better advice on the internet.
You could log on to Fidelity.com and open a brokerage account in about 10 minutes.
You then fund the account by transferring cash from your checking account to Fidelity.
When that clears, you simply select a stock and buy it online. The transaction cost $7.95
It is really that simple
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- 8 years ago
Retard good luck losing your money
- out2lunch4now2Lv 78 years ago
No broker, as such, is needed. There are companies like Scottrade and others that you can use. They charge a small fee per transaction but you decide what to buy or sell, how much and when. You set up your account and send them the initial funding for it. Some have a minimum initial investment level. After your account is activated, you simply go on line and follow the sites instructions after deciding what stocks and how many shares you want to buy.
Disagree? That's what I do - and I actually make a few dollars doing it.
- Go with the flowLv 78 years ago
Just find a discount brokerage.
Many good ones out there.
Google: Kiplinger review of best discount brokers.