Once you’ve made the commitment to start investing, the only question is how to start. In this post, we’ll cover how to open an account and buy stocks online.
In most regulated markets, only certified professionals can buy stocks. Stockbrokers pay for a seat on the exchanges and make their money from fees or commissions when people give them orders to buy or sell.
Opening an online investing account is nearly identical on any of the websites. You’ll first be asked the basic personal information like name, address and to choose a username/password.
The process for buying and selling stocks online is so easy that you will be tempted to ‘trade’ your investments, jumping in and out over very short periods trying to make a quick profit.
Resist this temptation at all costs. The online investing sites make their money on commissions so they want you to buy and sell as often as possible. Sure, it’s veiled in the interest of you making more money but it will end up costing.