| Buying stocks online is relatively easy and is probably | | | | Always do limit orders as compared to market |
| much easier than you might think. More people are | | | | orders. When you do a limit order, you specify a |
| trading stocks than ever before and the internet has | | | | price, which ensures that you get into (or out of) a |
| made online trading incredibly easy. There are | | | | stock on your terms and price. A market order, on |
| numerous online discount brokers that can help you | | | | the other hand, is an order to buy or sell a stock at |
| with making trades and with the growing number of | | | | the current market price. |
| brokers you'll be able to find the right one for you. | | | | For example, take eBay (EBAY) |
| Some of the things you need to check out when | | | | Shares: 100 |
| looking for an online broker are: | | | | Limit price: $12 |
| FeesEvery broker charges a fee and they can vary | | | | What I'm saying is that I want 100 shares and will |
| between approximately $5 to $10 a trade. If you do | | | | pay up to $12 per share |
| a lot of trades this can make a huge difference in | | | | There is also an option called 'All or None'. If you |
| your profits. You also need to make sure and read | | | | select this option, then your order will only be filled if |
| the fine print to see if there are any other hidden | | | | all 100 shares can be purchased. If only 99 shares can |
| costs. | | | | be bought, then your order will not go through. |
| Customer Service | | | | Yet another option is the 'Order Duration', which |
| If you run into trouble you should be able to reach | | | | could be 'Just for today', or 'Until I cancel'. |
| someone easily. This should be one of the main | | | | Stock Price |
| criteria in searching for any good online broker. | | | | When you look up a stock, there will be two prices |
| Accessing your money | | | | 'Bid' and 'Ask'. The Ask price is the price that sellers |
| Be sure to check if there's a charge for withdrawing | | | | are willing to sell the stock for and the Bid price is the |
| money from your account. There will probably be | | | | price buyers are willing to buy it at. |
| times when you'll need to withdraw money and if | | | | So if the Ask price for eBay is $14 and you're only |
| there's a charge, then is the brokerage firm the right | | | | willing to pay $12, you will just have to wait to buy |
| one for you? | | | | the stock until the price drops. But this is to your |
| And are there any sign-up bonuses? | | | | advantage, since you're basically saying I only want |
| So you're signed up with an online broker, now you | | | | this stock at my price, only on my terms. |
| get to buy your stocks. Find the stock symbol of the | | | | So, buying stocks online is very straightforward and |
| stock you're interested in, either through your online | | | | easy, but just take your time, as you should with |
| broker or at Then, you'll need to state how many | | | | any investment. First, find the right brokerage firm, |
| shares you want. | | | | and then find the right stock for your portfolio. |