The process to Purchase Stocks Online

The process to Purchase Stocks Online

It's easy to purchase stocks online. You can do it by creating an account with a broker. You can then transfer money into the account and buy stocks. You will also be able to monitor the performance of your stock portfolio while sitting on your couch instead of at a desk in an office building.

Here is how you can buy stocks online:

Open an online brokerage account

You can open an account with any number of online brokers, but you'll want to choose one that offers a range of investment options and also keeps costs low. You don't need to go for the biggest player; there are some great smaller companies out there.

When you're ready to start investing, put together all the information you think may be necessary: Social security number (or tax identification number), date of birth, address and employment details. Then head over to your chosen broker's website and follow their instructions on how to set up your account. The process should take no more than 15 minutes or so if everything goes smoothly.

Transfer funds into your new account

Once you have opened a brokerage account, it's time to transfer money into your new account. There are two ways in which you can do this: by bank transfer or credit card. With a credit card, the process is simple; all you need to do is provide your personal information and authorize a given amount of money from your current account to be transferred into your newly-opened brokerage account (usually at no cost). Bank transfers are slightly more involved—you will need to log on to the bank website, enter the appropriate information into their system and wait for them to confirm that they have received payment before transferring funds over.

Choose stocks to buy and sell

Once you've decided to buy stocks, the next step is to choose which ones to buy. As per the professionals at SoFi, “Stocks can be purchased in a variety of investment types, vehicles, styles and strategies.” For instance, investment type refers to how long your investment will last. For example, if you want to use your money for a few months or years until it's needed elsewhere (like an emergency fund or the down payment on a home), investing in short-term bonds may be ideal for this purpose. If you're looking for something more long-term—say, retirement savings—you'll want investments that provide greater growth potential but require more patience from investors (such as stocks).

Monitor the performance of your stocks.

It's important to know how your stocks are performing. You can monitor the performance of your stocks in many ways, such as through online services that track stock performance or through magazine subscriptions. Many brokerage firms offer portfolio tracker software that will allow you to access the latest information on all of your holdings at once.

If a stock's price has gone up, selling it back to the market can be just as simple as buying. You'll need to sign in to your account and choose the stock you want to sell. Then click "sell." This will open a new window where you can enter how many shares of that particular stock you'd like to sell and some basic information about yourself (your name and address). Clicking "Submit" will confirm that this is what you want—make sure you're ready before clicking!