Tesla, Apple, Google …
If you’re looking to buy stock and make some investments now is a good time even amid the pandemic.
But where do you start and who can help you do it right and make some money?
It’s not as hard as you think, so keep reading.
According to an article on Investopedia to buy stocks should seek out a professional stockbroker who has a background in the field.
For those who are experienced investors, there are two categories of brokers to pick from: a full-service broker or an online/discount broker.
Someone who is a full-service broker is typically traditional stockbrokers and someone who will get to know you on a personal and financial level.
When you interview them to see if they are the right fit they may ask you such things as your marital status, lifestyle, age, income, assets, debts, and more.
Think of it like this: The more they can learn about you they can develop a long-term financial plan that is best for you.
Full-service brokers aid with all your investment needs, as well as other help with estate planning, tax advice, retirement planning, budgeting, and any other type of financial advice.
Also, if you get along well a full-time broker can help with financial needs now and into the future and are for investors who want someone who can do it all.
Keep in mind full-time service brokers are more expensive but to have them do it all might be worth your while.
On the flip side, there are online/discount brokers who are for the most part folks who won’t offer investment advice but rather order takers.
They are less expensive than full-service brokers because they don’t work from an office and typically aren’t certified, investment advisors.
Instead, the cost is often tallied on a per transaction, and you may be able to open an account via the internet inexpensively.
After creating an account with an online broker, all you need to do is log on to the website and into your account and buy and sell stocks instantly.
It’s important to note a discount broker will give no investment advice, stock tips, or any investment help at all. In other words, it’s up to you to manage your stocks, investments. With an online discount broker, you will only get some tech help and possibly some links to resources and investments that could be beneficial.
So, the bottom line here is if you think you know enough about stocks and investing and can be managing your investments or you don’t know anything about investing but want to become more knowledgeable, this would be a good option.
In the end when you choose a broker the person should be tailored to your personal needs.
Full-service brokers are perfect for those who don’t mind paying a big price to have someone manage their finances.
Online/discount brokers are perhaps best for those who have minimal start-up money and may want to take some risks (and hopefully later rewards) of investing on their own, without professional help.
Direct Stock Purchase Plan
Some companies will sponsor what is referred to as a DSPP, or Direct Stock Purchase Plan program.
DSPPs was created for businesses to allow for smaller investors to buy ownership right from the company.
Being part of a DSPP requires an investor to get involved with a company directly vs a broker, however, some company’s way of administering a DSPP can be different.
Most companies (blue chip) usually offer DSPP through transfer agents or another third-party administrator.
To find out more DSPP ask the company’s investor relations department.
Another option is to seek out a boutique brokerage which is a smaller firm that caters to people on an individual basis
For the most part, you can buy or sell stock by yourself by opening a brokerage account with accredited brokerage firms.
Once you open the account it’s a good idea to connect it with your bank checking account then you can make deposits to invest when you’re ready.
If you’re serious about investing in general and just starting it’s suggested that beginners talk with a qualified financial advisor.
Investing can be fun and exciting whether you’re just starting or you’re more experienced.
Do your homework, do your research, and look for an advisor who has your best interests at heart when hunting for the right professional to guide you.
Disclaimer: This article is intended for informational purposes. Before acting on any recommendations, investments, or stock purchases related to this article please seek out investment advice from a certified financial advisor/and or your brokerage advisor.