Consider TradeKing as your Next Online Broker

If you're looking for an excellent online broker, look no further. TradeKing is a nationally licensed online broker with a mission to help you become a smarter, more empowered stock and options trader. At TradeKing we offer the same fair and simple price to all our clients - just $4.95 per trade, plus 65 cents per option contract. You'll trade at that price, no matter how often you trade, or how big or small your account may be.

To Your Online Brokerage!

Login  to your online stock brokerage account to start placing your trade. Let's say you're an ABC buyer, so you'll be purchasing at the ask price of $84.79. Now what?

Start by choosing Buy and entering your ticker symbol (or looking it up, then entering it): ABC. Enter the number of shares you want to buy, too.

You have a few more choices to make as you tee up the trade ticket. First, are you entering a market or limit order? A market order says you want to buy ABC at the best available stock market price, whatever it is. This is usually the fastest way to place your stock trade. If you're stock investing for the longer term and not too concerned with market timing, that might be fine for your needs.

Of course, if you were trading a fast-moving penny stock, or if there's suddenly a big run in IBM shares, that could get expensive. To lock in your stock price, you may prefer entering a limit order (a limit order may not guarantee an execution). For a limit order, you specify the price at which you want to buy ABC; if your discount broker can get you a better price on this buy, you'll be fine with that, too.

You can even get really fancy and opt for a stop order. A stop order tells the market: if ABC trades at or through a certain price, trigger my order to go. You can enter a plain-Jane stop order, that "triggers" a market price after your stop is reached, or you can enter a stop limit order. In that case, the order gets activated when your stop is reached, then gets entered automatically as a limit order.

You can also specify the duration of your order: a day order expires at the end of the current trading day, while a GTC is Good 'til Canceled.

If you really want to get specific, you can qualify your order, too: AON stands for all or None, meaning you want your full share quantity filled or no shares at all.

Make your choices, and then click to submit your order and start investing. That's it!

How to Buy Stock Online

Step -by-step guide on how to buy stocks through an online brokerage.

Buying stock at an online broker is easy - but you do need to know a few points before pulling the trigger on your online trade. Here are some pointers to get you started.

Anatomy of a Stock Quote

When you pull up a stock quote, the first thing you'll notice is that "quotes" include several numbers: the closing price, the last trade price, and the bid and ask.

Let's look at fictional company ABC. Let's assume that, as of this writing, the last trade was 84.77, but the price at the last trading session's close was $84.12. Meanwhile, the bid and ask are $84.76 and $84.79. What's the real quote then?

Start Trading Stocks for $4.95 per Trade

The bid price, or bid, refers to the price at which you can sell stock; the ask price, or ask, is the price at which you can buy stock. You'll see there's a 3-cent difference between these two numbers in the example above; that's called the spread. The specialist for ABC on the New York Stock Exchange makes its money on the spread

Which securities should you invest in

Once you’ve created and funded a brokerage account, you’ll be able to purchase your first investments. This is where things can get a little complicated, because there are more than a few asset classes to consider.

Individual stocks: When you invest in stocks, you are buying shares of ownership in individual companies. Buying individual stocks can be risky, because your potential for loss will be greater unless you make sure to diversify your portfolio. On the other hand, stocks also possess great potential rewards; if the company does well, your shares could soar in value.

You can lessen this risk of investing in stocks and increase your total return by spreading out your investments over a variety of stocks, across different industry sectors, such as basic materials, financials, health care, consumer goods, technology and utilities.

Mutual funds:  A mutual fund is a professionally managed investment vehicle that pools investor money to purchase securities, such as stocks and bonds. Mutual funds are popular with investors because they can provide asset diversification with a small upfront investment.

For example, if you have $1,000 to invest, it probably makes more sense to purchase $1,000 worth of shares in a diversified mutual fund than to buy $100 worth of shares in 10 different stocks. Tracking and following 10 different stocks can also be very time-consuming, making mutual funds an even more attractive choice for beginners and passive investors.

To choose a quality mutual fund, you should carefully compare the expense ratios of each fund, evaluate the fund’s investment objectives and past performance, measures the fund’s potential risks and returns, and go with a fund that is run by a high-quality management team.

Exchange-Traded Fund (ETF): An ETF is a fund that generally tracks an index, which can be traded on an exchange, exactly like stocks. ETFs generally don’t try to outperform a fund or an index; instead, they aim to match its performance. For example, if you wanted exposure to the U.S. stock market, you could buy an ETF that tracks the performance of the Dow Jones Industrial Average or the Standard & Poor’s 500.

ETFs can be an attractive option over actively managed mutual funds because they tend to offer lower administrative costs. The average expense ratio of an ETF is 0.43%, compared to an average of 1.4% for traditional mutual funds, according to ETF Database. On a $10,000 investment, you’d forfeit $43 in fees with the ETF, compared to $140 with the mutual fund.

How do you pick the right broker

Picking the best broker for online stock trading depends on your personal situation and your own individual needs.

If you are planning on trading stocks actively, you should try to focus on brokers that charge the lowest commissions and offer free trade promotions. If you have very little money to invest initially, you should also look for brokerages that require a small minimum opening balance.

Other factors to consider include the range of product offerings, the level of customer service, help and support, if free research and educational tools are provided, the use of a mobile app, and the quality and ease of the trading platform.

How Can I Buy Stocks Online

Online brokerages have made investing possible for anyone with a computer, an Internet connection and enough money to open an account.

You can buy and sell stocks instantly, with just a few clicks of the mouse. However, before you start trading stocks online, there are a few things you should understand, including how to pick the right broker and what investments to consider. Here are some tips to help you get started.

What is a brokerage account?

To purchase stocks, you’ll need to set up a brokerage account, where you can deposit funds and place investment orders. Starting a brokerage account online is usually free, but often requires a minimum deposit, which can range anywhere from $500 to $2,000 or more.

You will also pay fees for each transaction you make – buying or selling a stock can cost you anywhere from $5 to $10 or more in commission fees, depending on your broker.

If you are starting out with limited funds, keep in mind that trading stocks often can end up eating into your profits. For example, if you have $1,000 to invest and make 10 trades with a commission of $10 per trade, you’ll already have forfeited 10%, or $100, of your initial deposit

Online Tools

Find Brokers -- Tips about finding brokers and research about brokers, from the U.S. Securities and Exchange Commission (SEC).

DRIPInvestor.com -- Sign up for a free list of direct-buy stocks.

Tips

·       Decide whether to go through an online brokerage firm or through a face-to-face broker.

·       After evaluating a stock, decide the prices you'd like to purchase at, so you know whether to make a "market" or "limited" order.

·       To save on broker fees, you can buy some stocks directly from the company.

How to Buy a Stock

Investors most commonly buy and trade stock through brokers.

You can set up an account by depositing cash or stocks in a brokerage account. Firms like Charles Schwab and Citigroup’s Smith Barney unit offer brokerage accounts that can be managed online or with a broker in person. If you prefer buying and selling stocks online, you can use sites like E-Trade or Ameritrade. Those are just two of the most well-known electronic brokerages, but many large firms have online options as well.

Once you open an account you will tell your broker how many and what types of stocks you’d like to purchase. The broker executes the trade on the your behalf. In turn, he or she earns a commission, normally several cents per share. Online trading sites typically charge lower commission fees, because most of the trading is done electronically.

After selecting the stocks that you want to purchase, you can either make a “market order” or a “limit order.” A market order is one in which you request a stock purchase at the prevailing market price. A limit order is when you request to buy a stock at a limited price. For example, if you want to buy stock in Dell at $60 a share, and the stock is currently trading at $70, then the broker would wait to acquire the shares until the price meets your limit.

While purchasing stocks through a broker has its advantages, there are other ways to buy stock. You can purchase stocks directly through the company. Sites like DRIPInvestor.com will show a list of companies that allow direct-buy of stocks.

Why invest in stocks and shares with Barclays Stockbrokers?

·         Low cost share dealing - Deal online from just £5.95 to £11.95. The more you deal, the less you pay

·         Get the best prices available from our range of service providers - Barclays Stockbrokers Price Improver® gives you the best price available from our selected Retail Service Providers (RSPs) every time you deal. 91% of deals placed between January and October 2015 got a better price than the London Stock Exchange**

·         Make informed decisions using our analysis, research and education includingSmart Investor, Stockbrokers TV, Funds List, Funds Research Centre and Barclays Blog

·         Keep up to date with our daily stock market and equity news

·         Tailor your investment strategy with advanced order types including limit orders, stop orders and trailing stop orders.

Remember:

-  The value of your investments can fall as well as rise and you may get back less than you initially invested.

-  Investing is not for everyone, if you are unsure please seek independent.

Stocks buying on line

Q1: These questions and answers will be much beneficial on how to buy stocks on line.

When is the best time to buy, hold, or sell a stock?

A: There are a thousand factors here. As a novice, look for investment advice sources you trust while you expand your knowledge. A detailed look at the year-by-year performance and reports of the company is a good place to start learning.

Q2: What is the actual process for purchasing shares?

A: Almost all stocks are purchased through a stockbroker. This can range from an online broker that follows your instructions, to a personal financial planner who meets in person to plan your investment. The first option is cheap; the second option is more effective.

Q3: How do I buy shares online? Are there associated risks?

A: Search for an "online broker." This service will handle the transaction, but offer little to no advice. This can be risky if you don't have any stock experience, but as long as you read the terms carefully you can avoid problems with the broker itself.

Q4: People talk about buying stocks, equity, or mutual funds. What's the difference?

A:  An equity is a general term for ownership in a company, so "shares of stock" and "equity shares" are the same thing. A mutual fund is a collection of shares you can invest in with one purchase, which is a lower-risk tactic than betting your money on one company.

Q5: How do I invest in an exchange-traded fund?

A: Just like shares, most ETFs are purchased through a stockbroker. Although diversified, they are riskier than mutual funds, and the management fees can make them unprofitable for a small investor.

Q6: How do I find the unit cost of a company's product?

A: The unit cost, or amount the company spends to sell one unit of product, may be listed in the company's quarterly report. A company that sells products with a low fixed cost can reduce the unit cost as it grows through economies of scale.

Q7: How do I look up a share price?

A: A quick online search for "stock prices" will lead you to many free stock lookup databases.