How to Buy Shares

If you’re looking toward the future, one of the smartest things you can do is invest so that your money has a chance to grow. Fortunately, it’s easier than ever before to buy shares and become an investor. Nonetheless, there are still things you’ll want to make sure you know. Keep reading to learn more.

Choosing a Stockbroker

You can’t simply purchase stocks on your own. That’s one of the unique features of buying stocks—someone has to do it for you. The person who will purchase stocks on your behalf is known as a stockbroker. Generally speaking, there are four types, so you’ll need to think about the kind that is right for you before you buy any stock.

Online Brokers

An online broker, sometimes called a discount broker, is as simple as it gets when it comes to stockbrokers. For the most part, they literally just take your order and make it for you on your behalf. This is one of the reasons they’re the cheapest option. The other is that there is typically little overhead on their side of things. You’re not visiting them in their office, for example.

Discount Brokers Plus

The next step up isn’t so different from online brokers, except this version will actually provide you some assistance in terms of the stocks you decide to purchase. Generally, this takes the form of investment reports their firm has put together or some kind of investment tips. They charge a bit extra for it and then place your order for the shares you want.

Full Service Broker

A full service broker is a world away from the other two options. With a full service broker, you get someone who sits down with you and asks you a lot of questions to get to know you on a personal and financial level. These brokers can also cover far more than simply purchasing shares on your behalf. They can also assist you with things like estate planning, retirement planning, your taxes and more.

Money Managers

If you want to learn how to buy stock, but essentially want to be left out of the process, a money manager is the professional for you. They’ll essentially manage your financial affairs, when it comes to investing, with their own discretion. Money managers are really only an option for individuals who have at least $100,000 they want to see managed and grown. It’s also not for the people who want to have any control in terms of the shares that are purchased. When you hire a money manager, you’re looking for a professional who will handle everything for you and then essentially allowing them to do so.

Choosing One

Obviously, your choice will be hindered by what you can afford. But it will also come down to your goals. If you’re simply looking for someone who can purchase the shares you want on your behalf, the first two options are right for you. If you’re looking to purchase shares because you want to have money for a college fund or retirement, you’ll want to consider the latter two options.  More on how to buy stock.