The development of the Internet has made it possible to do almost everything online, including buying stocks. While it seems easy to purchase the stock via the computer, there are still some steps you should follow to ensure a smooth buying process.
Choose the Right Trading Platform
Choose the wrong trading platform can lead to wasted money, time, and effort. When you are selecting the platform, two major factors should be taken into consideration. The first is the specific feature of the platform. An ideal trading platform should include some important features like an easy-to-use interface, the convenient access to different stock markets, in-depth information, and enough flexibility for your transaction. Another fact worth considering is the fee. Obviously, platforms with lower charging fees will be more popular. What you should do is to try your best to combine the two factors when picking the platform.
Open an Account
After choosing your trading platform, you can start to open an account. Generally, you are required to provide both your personal and financial information, including your name, date of birth, address, social security number, investment experiences and goals, etc. Your funding information, like your routing number, account number or debit card number is also entailed.
Pick Your Stock
The types and options of stocks can be overwhelming. Before you start your investment, think about the objectives you have and the risk you can afford. Stay patient and learn about the individual stocks as much as possible. Remember: Only invest in what you know. You may do some research to know more about the stock or a particular company. For example, consulting analyst research reports, conference call transcripts, and industry trend bulletins can help you get an idea of the performance of an enterprise.
Understand the Order
You are pretty much likely to put in a market order as you purchase your first stock. If you are in a market order, you will buy the stock at whatever the current price is. Sometimes you can encounter a limited order, which is a special type of order designating a price that you may feel reluctant to exceed. Whether you are entering a limited order or a common market order, you have to make sure that you can afford your purchase.
There are five online brokers recommended for beginners: Fidelity, Charles Schwab, TD Ameritrade, E-Trade, and Citigroup. You may start your fist online investment now.