You can buy a one-time amount of $500 of Coca-Cola stock on ComputerShare for a $5.00 fee, or set up at least 10 recurring $50 purchases for a $2.50 fee. In contrast, most online brokers charge zero commissions to buy and sell shares of stock. Both firms charge additional fees for direct purchase plans. The two most common direct purchase plan administrators are ComputerShare and American Stock Transfer & Trust Company ( AST). You’ll most likely be charged additional fees, however.ĭirect purchase plans are almost always administered by third parties, rather than the companies themselves. Not all publicly traded companies participate in direct stock purchase plans, but many of the largest, most popular names do, and you don’t need a brokerage account to buy stocks this way. If you’re already identified stocks that you’d like to buy, you may consider a direct stock purchase plan. This lets experienced investors buy more shares of stock with less of their own money in exchange for some additional costs and much more risk. With a margin account, the brokerage lends you money to buy stock. Your online brokerage of choice might also ask if you want to open a margin account. While they don’t offer the tax advantages of IRAs, they also don’t have any limitations on how much money you can deposit or when you can withdraw funds. If you’re investing for a day sooner than retirement-or you’ve already maxed out your retirement accounts-look to a taxable brokerage account.

If you want to buy stocks to fund your retirement, consider an individual retirement account ( IRA) that offers you certain tax advantages, like tax-deferred growth of your investments and potential tax credits on your tax return. Online brokerages offer taxable accounts and tax-advantaged accounts. If you see yourself as a hands-on investor who likes researching companies and learning about markets, an online brokerage account is a great place to get started buying stocks. Open an Account to Buy StockĪ brokerage account is the most convenient place to buy stocks, but it’s far from your only option. Here’s our step-by-step guide on how to buy stocks: 1. Between 19, a 100% stock portfolio returned an average 10.1% a year, according to Vanguard-almost twice the return of an all-bond portfolio over the same period. Stocks play a key role in your investment portfolio, and learning how to buy stocks is your first job as an investor.

Cheapest way to buy stock on the nasdaq