How to Buy Stocks Online in the USA
- 1). Open your trading account with an online broker in the United States that has access to U.S. stock markets. During the opening process, you will have to complete a number of web-based forms that will provide personal information, your investment knowledge and objectives for the account.
After these forms are completed online, hard copies will be sent to you for your signature. You will return the signed copies, along with copies of your identification, and your account will be opened when the company receives the documentation. - 2). Fund your account with the capital you are planning to invest into the stock market. Funding your account is simply depositing money into it to pay for the stocks you intend to buy. Depending on the brokerage you selected to use, you may be able to transfer these funds electronically. Otherwise, you will have to send a check or money order to the brokerage for deposit into your account.
- 3). Write down the names and stock symbols of companies you are interested in investing in. See if your online stock brokerage has research available for its clients. If not, there are a number of online research sites where you may be able to obtain the information you need. Do not rely solely on one research report: read as many as you can and conduct your own research when possible.
- 4). Complete a "market" order to buy stocks for your portfolio. This will fill your purchase at the next available trade price. Once you send the order by either saving or hitting the "enter" button, your order is placed and will be filled right away. Market orders are the quickest way to buy stocks, as they are filled at whatever price the stock is trading at on the exchange at that moment.
You can also buy stocks using a "limit" order stipulating the price you want to buy the stocks at if they are trading above the price you feel is reasonable for the shares. When you place your orders, there will be a field on the order screen where you will select whether you wish to purchase using a "market" order or a "limit" order. If placing a "limit" order, you will also enter the price you wish to buy the stocks at. A limit order will give you control over the price you purchase at, but if you are trying to buy the stock at the start of a move either up or down, you may not get filled if the stock doesn't get back to the price you have entered.