How To Buy Stocks Online Without A Broker

Today’s question is how to buy stocks online without a broker. Before I answer this question, please make sure that you share this blog or anything that I have written to someone that could benefit from learning about personal finance.

Now about answering that question.. You can buy stocks online without a broker, but it doesn’t really matter nowadays. The reason being for that is because a lot of brokers are starting to offer $0 fees per trade. According to a website by ZACKS, it states that,

The key to buying stocks without a broker is a direct stock purchase plan. With a DSPP, a company uses a transfer agent like Computershare to move ownership from the company to investors. You simply choose a stock from the many companies that use the service, pay nominal fees and invest the minimum amount per transaction.

The biggest benefit of going through a DSPP is cost savings. A full-service broker typically charges around $150 per transaction, whereas you can find fees as low as $10-$15 when you go through a DSPP. You can also make an investment as low as $25, or agree to recurring investments for as little as $10.

https://finance.zacks.com/invest-stocks-broker-5612.html#:~:text=Buy%20Stocks%20Without%20a%20Broker&text=With%20a%20DSPP%2C%20a%20company,the%20minimum%20amount%20per%20transaction.

Now just like I said above, you don’t really have to worry about fees per trade anymore thanks to apps like Robinhood, Stash, etc.

Apps like Robinhood, Acorns, M1Finance all have to get approved before be able to allow trading on their platforms. There’s a lot of legal stuff involved when going about doing it.

According to the Robinhood website, it states that,

Brokers are the most common “transaction machines” investors use to trade stocks, as well as bonds, options, mutual funds, and more. To conduct business with publicly traded stocks, brokers must be licensed businesses (they must register with the Securities Exchange Commission and the Financial Industry Regulatory Authority) that pair people who want to buy or sell a specific amount of a security with the other side of the transaction.

Brokers, which can run electronically as well as in brick and mortar offices, usually generate revenue in part by charging a fee (aka a commission), for each security it moves from person A to person B. (Robinhood Financial LLC doesn’t charge a commission). FYI, they’re required by law to execute the trade at the best price available.

https://learn.robinhood.com/articles/3AalDDtYuWx4fp46eEZpxq/what-is-a-broker/

So to end this blog post, I would say you don’t need to worry about trying to find a way to buy stocks without a broker. Just do your research on what broker you decide to do business with.

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