Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

? asked in Business & FinanceInvesting · 5 years ago

Do you need to have a broker to buy stocks?

7 Answers

Relevance
  • Spin
    Lv 5
    5 years ago
    Favorite Answer

    Depends on what a broker is.

    A stockbroker? Not needed.

    A brokerage firm? Needed unless you open a DRIP with a company that sells you its stock directly.

  • 5 years ago

    You need a brokerage account at some online firm like Fidelity.com. Then you can trade stocks for about $8 per trade. A broker would cost much much more.

  • 5 years ago

    No, you can open an account online with Scottrade, Ameritrade, Schwab

    or any broker. Decide which one you want, call them and find out the minimum you have to deposit. Online you buy/sell yourself and there is

    a small charge. Do some homework before blindly jumping in.

  • 5 years ago

    Usually you need a broker. Some companies may have a way to purchase stock and dividend reinvest (DRIP) directly, but that may be unusual.

    I did that with Washington Mutual long ago when they were consistently paying 5% dividends. But I saw that they were overextending themselves (too many branches competing with themselves) and bailed out of it before their stock price dropped and they went bankrupt.

  • 5 years ago

    Yes,If someone wants to buy stock then he/she needs broker,

    1. Open a stock broker account

    Find a good online stock broker and open an account. Become familiarized with the layout and to take advantage of the free trading tools and research offered to clients only. Some brokers offer virtual trading which is beneficial because you can trade with play money (see #9 below). A great tool for comparing online brokers can be found at StockBrokers.com.

    2. Read books

    Books provide a wealth of information and are inexpensive compared to the costs of classes, seminars, and educational DVDs sold across the web. Here on the site we have a full list of 20 great stock trading books for investors to consider. My personal all-time favorite is How to Make Money in Stocks by William O’Neil, founder of CANSLIM Trading

    3. Read articles

    Articles are a fantastic resource for education. Our free Stock Education page here on StockTrader.com lists over 100 unique investment articles broken down into categories. Recommended websites for investment education are investopedia.com and of course Google search.

    4. Find a mentor

    A mentor could be a family member, a friend, a past or current professor, co-worker, or any individual that has a fundamental understanding of the stock market. A good mentor is willing to answer questions, provide help, recommend useful resources, and keep spirits up when the market gets tough. All successful investors of the past and present have had mentors during their early days.

    Forums can be another source for question and answer. Two recommendations include Elite Trader and Trade2Win. Just be careful of who you listen to. The vast majority of participants are not professional traders, let alone profitable traders. Heed advice from forums with a heavy dose of salt and do not, under any circumstance, follow trade recommendations.

    5. Study the greats

    Learning about the greatest investors of years past will provide perspective, inspiration, and appreciation for the game which is the stock market. Greats include Warren Buffett, Jesse Livermore, George Soros, Benjamin Graham, Peter Lynch, John Templeton and Paul Tudor Jones, among others. One of my favorite book series is the Market Wizards by Jack Schwager.

    6. Read and follow the market

    News sites such as Yahoo Finance and Google Finance serve as a great resource for new investors. For in depth coverage, look no further than the Wall Street Journal and Bloomberg. By monitoring the markets each day and reading headline stories investors can expose themselves to trends, 3rd party analysis, not to mention economic concepts and general business. Pulling quotes and observing fundamental data can also serve as another good source of exposure.

    TV is another way to monitor the market each day with CNBC being the most popular channel. Even turning on CNBC for 15 minutes a day will broaden an investor’s knowledge base. Don’t let the lingo or the style of news be a nuisance, just simply watch and allow the commentators, interviews, and discussions to soak in. Beware though, over time you may find that a lot of the investing shows on TV are more of a distraction and are overall full of junk recommendations. This is a natural evolution; you are not alone!

    7. Consider paid subscriptions

    Paying for research and analysis can be both educational and useful. Some investors may find watching or observing market professionals to be more beneficial than trying to apply newly learned lessons themselves. There are a slew of paid subscription sites available across the web, the key is in finding the right ones for you. View a list of the services I use use myself. Two well-respected services include Investors.com and Morningstar.

    8. Go to seminars, take classes

    Seminars can provide valuable insight into the overall market and specific investment types. Most seminars will focus on one specific aspect of the market and how the speaker has found success utilizing their own strategies over the years. Examples include Dan Zanger and Mark Minervini. Not all seminars have be paid for either. Some seminars are provided free which can be a beneficial experience, just be conscious of the sales pitch that will almost always come at the end.

    When it comes to classes, these are typically pricey, but like seminars, can also be very beneficial. Will O’Neil workshps, Investools, Online Trading Academy, and Bulls On Wall Street provide a variety of courses on investing and trading.

    9. Buy your first stock or practice trading through a simulator

    With your online broker account setup, the best way to get started it to simply take the plunge and make your first trade. Don’t be afraid to start small, even 1, 10, or 20 shares will serve its purpose of getting you in the game.

    If trading with real capital is not possible initially, consider using a stock simulator for virtual trading. A variety of online brokers offer virtual trading for practicing.

    One of the most common mistakes traders make is to go all-in and try to score big with a full portfolio position out of the gate. This is an often painful mistake and why many new investors suffer big losses early on. Proper portfolio allocation is extremely important. For more tips of wisdom, see my article, 60 Stock Tips for Investment Success.

    10. Sign up for our free daily market recaps

    Join over 17,000 other investors and receive our daily posts via email using the subscribe box below or on the sidebar. I invite all new investors to make StockTrader.com a part of their daily investment routine.

  • Anonymous
    5 years ago

    Use a discount brokerage site like merrill edge

  • Anonymous
    5 years ago

    You need a brokerage account, yes. You do not need anyone's investing advice.

Still have questions? Get your answers by asking now.