If you are looking to start investing in stocks, here are the 5 steps to buy stocks.
1. Open an account at a brokerage
If you are just getting started, I would recommend opening an account with an online brokerage offering fractional shares so that you can invest in as little as $5 per company instead of having to purchase entire shares that at times can be hundreds or thousands of dollars, for example, a share of Tesla currently cost $
Here are a few online brokerage options worth considering:
- Robinhood
- SoFi Invest
- Webull
- Public
2. Choose a company you would like to invest in
If you're not sure of a specific company you would like to invest in, you may want to consider investing in ETFs or index funds. ETFs and index funds allow you to create a diversified investment portfolio by inbesting in hundreds or even thousands of stocks.
3. Choose how much you would like to invest
If your brokerage allows you to invest in individual shares, you can choose any amount you'd like above $5 per company.
If you must invest in full shares, decide how many shares you'd like to purchase.
4. Execute Your Trade
To purchase a stock, choose the type of order you'd like to place, the 2 most common are:
Market order: Invest in the company at the current market price
Limit order: You choose a specific price you would like to invest in a company and how long you want that v. The trade will be placed once you can get the specified price or better. Example: You may want to invest in Amazon, but don't want to pay more than $90, the share price closed on March 1, 2023 at $92.17, your trade won't be placed until or if, the price falls to or below $90.
Once you're order goes through, your stock investment will show up in your account.
Congratulations, you are now a stock investor!
Related articles:
9 Investment Brokerages Offering Free Stocks
What are Fractional Shares