A complete guide on how to buy stock: Stocks are the most popular asset to invest your money in today. The emergence of online brokers has made buying stock as easy as never before. Brokers from the world’s oldest banks to new discount brokers are available today. The array of investment platforms online to choose from has grown to a great extent. An opening account on some of these platforms is as easy as opening an account on any website online. Buying stock online is as easy as buying any other product on eCommerce websites. They are also cheap to the extent of no brokerage fees on trades.
Moreover, websites and blogs are available to give users guidance to be an expert trader. Online blogs on stocks and investments provide you with an in-depth analysis. You can track assets you have your eyes on with great ease today. With all these tools available online buying stocks will be a cakewalk. In this article, we will look at some of the key things to cover as you get into the world of stock trading. Including but not limited to how to identify and open an account on online brokers to the best stocks to buy now.
Step 1: Choose An Online Broker To Buy Stock
Identifying an online broker is as important as choosing the asset to invest in. There are hundreds of online brokers out there with unique features to choose from. While choosing an online broker you need to look at the country of their registration. Whether they can run business in your jurisdiction. Confirm the fees charged including trading fees, deposit withdrawal fees and so on. Some exchanges provide free deposits and withdrawals and zero trading commission. We have reviewed and ranked them considering lower fees as criteria to help you buy stocks.
Likewise, you should also confirm the deposit withdrawal options they provide. Most online brokers partner with third-party service providers to process payments. They use services like PayPal and Skrill to process your deposits and withdrawals. Many online brokers also offer a wire-transfer facility. But, in most cases limited to high-value transactions. You should consider the fees third party websites charge to process your transaction. You may end up paying quite a lot of your money in fees in that case if you fail to choose the right broker.
Best Stock Broker
Based on our reviews of the online stockbrokers, we have listed the top broker to buy stocks. We have ranked these brokers based on many factors taken into consideration. Their credibility is the number one priority. We have looked at how easy is it to register an account. How quick and safe is it to deposit and withdraw money. Variety of assets and markets offered. Easy of use of the platform. In particular, Quality of customer service. Availability across devices and more.
IQ Option provides trading on a variety of financial instruments. Starting from Binary Options, Stocks, ETFs, Forex, Commodities, and Cryptocurrencies. You can buy shares of 169 companies including Apple, Google, Amazon, and Microsoft. Founded in 2013, they have grown to one of the most found after trading broker. Registering and depositing money on IQ Option is quick and easy. You can start trading on their platform within minutes. Their customer service is available 24/7 in many languages. They provide deposits via credit card, debit card, payment gateways, and wire transfer. They also allow deposits in many currencies. With the smallest deposit of $10, you can start trading. You can buy a position as low as $1 to start with. They also provide leverage trading on many assets. You can go up to 20x leverage on CFDs of your favorite stocks. You can access IQ Option on desktop, mobile, and web.
Step 2: Register With An Online Stock Broker
Once you have identified a broker that works best for you. After considering their country of service, fees and deposit methods. You can register an account with your personal email id. Keep the password of your trading account different from your email as a standard rule. Follow this rule as financial platforms are prone to attacks more than any others. Your email and password would be all some sites ask for. WhereasOne-click others may have many questions and forms for you to complete registration. One-click registration is what everyone prefers.
But, some online brokers have more inputs required as per the laws of your country. Sometimes due to the laws of the country under which they operate. Refer YouTube videos on registration of these brokers to know the process upfront. Many brokers provide a demo account to try their platform. We would recommend registering on a couple of brokers to try out their platform. As well as get a hands-on experience on trading before you make an actual trade.
Step 3: Complete ID Verification
Once you have completed registration, you will have to verify your identification. Some platform lets access all features before verification. But, in most cases, ID verification is compulsory to enable key features of the platform. To follow AML KYC rules companies have to verify the user’s identity. Like any other financial institution, online brokers have to follow AML KYC rules. This is to ensure the information provided by the user is the identity of a real person. Users can verify their identity by submitting documents like driving license and passport. Likewise, online brokers may also ask you to verify your address. You can do so by providing a country issued document or bank statement. Most of the companies accept verification documents online. Some use secure third-party tools to process verifications. Providing your identification documents through such verification tools is the better option.
Step 4: Learn Trading And Markets
Millions of people try their hand in stock trading every year. But, only a few make it to the world of successful trading. Most beginners burn their hand chasing hot chips in the market. Without understanding the underlying principles or reasons behind these price movements. Everyone who succeeds will have mastered the trick of tilting the odds to their favor. This comes with years of trading experience. But, thanks to the internet, today there are hundreds of online portals to help you. There are inexpensive articles, books, and videos you can refer to learn to trade. Patience is a crucial skill to have to be a successful trader. From learning all aspects of trading to not burn your hands in crazy price swings, you need patience. Learn the basics of technical analysis. There quite a lot of them. But, learning to read charts will come in handy at all times.
Step 5: Invest Only What You Can Lose
Invest only what you can lose. This should be your primary motto as a trader. Luck could sometimes flip the odds to your side and win you big. This will likely give new traders an urge to give another try, something bigger, all in. But, even if you are an expert trader this is a big mistake to do. The odds of losing everything is as equal to winning it all. Many online brokers today provide demo accounts. You should always make use of it to try out your strategies and learn to trade better. Bottom line is to start your trading journey small, try to learn as much as possible, and watch the markets. Try to test your strategies small, practice with demo accounts and once you are sure, make the big moves.
Step 6: Deposit Money
Depositing money on an online broker is quick and secure these days. Most of the brokers provide many options to their users. You can deposit money using a credit card, a debit card or payment gateways. Payment gateways like PayPal and Skrill are popular methods of deposit. Users can also use the wire-transfer facility. But, in most cases, this is available to the transaction of large amounts. The primary preference for most users on these platforms is credit cards. The user needs to confirm the fees for the payment options provided and chose the one that fits best. You should also confirm the modes of withdrawal available before depositing the money. You should also confirm the fees for withdrawals. Some brokers even let you withdraw money back to credit card within a period of time. But, this is always limited to the amount of money you have deposited.
Step 7: Find The Right Stock To Buy
Identifying the stock you want to buy is the first step to building your portfolio. That’s right, portfolio, As a trader, you should always invest your money across a bunch of stocks. Stocks that have good fundamentals to reduce risk. You become a part-owner of the company you buy the stock of. So understanding the business of the company and their future is your responsibility. Like the owner or management, you should understand the business model and vision. You will have to do tremendous research on the company to invest in it. Even if you are a day-trader looking to make some quick bucks from short term price movement. Always learn to avoid hype and fall into the fear of missing out. FOMO might drive you to a decision quick. But, decisions after understanding the fundamentals is the best path to take.
Step 8: Identify Right Entry Point To Buy Stock
Many traders, especially beginners buy a stock on hype. They hear about the parabolic price rise and decide to invest. You should always restrain from such mistakes. Understanding and identifying the right entry point is very important. The entry point is a price at which a user buys or sells stocks. Once you understand the fundamentals and watch the market, you will be able to find the right entry point. A beginner could always try out a few entry points with demo accounts and see if you have got it right. Researching on market and stocks is one way to find an entry point. Likewise, you could also learn to read charts and trading signals. This is another way you can find the right price to buy stocks. A chart reader will be able to guess future prices with great precision. Always trade with this in mind.
Step 9: Buy Stock And Track Your Position
Once you have learned to identify shares and the right entry point, start buying. Build a portfolio with many stocks that have strong fundamentals. This way, you will reduce the risk by spreading your position across companies. Some online brokers also provide a handpicked set of stocks as a portfolio for you to start easy. The social trading platforms are another way to go. You can watch and copy a trader. This way, you will be copying the trade actions of that trader. Once you have bought the stocks, it’s important to track your position. You should watch the market, follow news and keep updated with the latest trends. A successful trader always watches his position and reposition his investments.
Step 10: Finally, Be Aware Of Trading Rules
Always be mindful of basic trading rules. Do your research to find and learn trading rules most traders follow. You should never forget some of the key rules. Like, not investing money you can’t afford to lose. Create and follow a trading plan. Keep learning every day. Do not let losses or wins get into your nerves. Learn one skill at a time, but try to master them all. Learn to read charts. Be aware of as many trading rules as possible and follow them.
Opening account with an online stock broker is not a complex task. Some of the websites take as low as a minute to get you started with an account. But, we have listed the most popular steps to start a trading account these days. Some of the brokers may or may not have all these steps for you to start your first trade. We have also listed the popular brokers to buy stocks in this guide to buy stock. Easiness to register an account is one of the most important factors we have considered to rank them. The above steps will make it easy for you to buy stock.