| Setting up an account with an online broker involves | | | | transferring money to and from your account using |
| three steps; entering personal information, funding | | | | the standard bank transfer method. If you require |
| the account, and executing your first trade. Follow | | | | money wired or a cashiers check there will be a fee. |
| these tips to get started with an online discount | | | | With no fees on standard transfers you can fund |
| broker. | | | | your account with as little as a dollar. Once you have |
| Setting up the Account | | | | an adequate amount of funds you can start trading. |
| To set up you account you'll need your basic | | | | Making your First Trade |
| personal information like a social security number, a | | | | Once your account is funded and the money has |
| physical address, and basic contact information. You | | | | settled you can make your first trade. You will need |
| will also need an active checking account. Most | | | | to know the ticker symbol of the company you'd like |
| investors already have a checking account. Brokers | | | | to buy stock in. Some discount brokers allow you to |
| can use your existing checking account regardless if it | | | | buy partial shares of a stock so you can buy a |
| is a local bank or an online company. You will also | | | | fraction of a share of an expensive stock. This |
| need a way to access the internet securely. Trading | | | | means you can buy an expensive stock without |
| from a public computer is not recommended as all | | | | having the full amount needed. In most cases brokers |
| you most sensitive information is available on your | | | | only sell full shares of stock. Find out how many |
| account. Setting up an account is easy and can be | | | | shares of stock you can afford and remember that |
| done within an hour. Once your account is setup you | | | | number. On the stock order screen you will need the |
| can fund your account. | | | | ticker symbol and the number of stock you'd like to |
| Funding the Account | | | | buy. If you want to do a limit order you can try |
| Some brokers require a checking deposit confirmation | | | | entering a lower price for the stock than what it is |
| to verify the account and routing number you | | | | currently being traded for. The broker will then |
| provided. Usually this involves depositing two small | | | | execute the trade at the lower price you desired. If |
| amounts of money in your checking account. Once | | | | you perform a market order you buy the stock for |
| you see the deposits return to the brokers website | | | | roughly the same price the stock shows at the time |
| and confirm the amounts. Once your account has | | | | of the order. Keep in mind that when you buy a |
| been verified you can start moving money to and | | | | stock you are buying it from another person. The |
| from your checking account. You can only move | | | | same is true when you sell a stock; some one needs |
| money out of your account that has been cleared. It | | | | to buy your stock before the trade is complete. Low |
| takes around three days for funds to clear before | | | | volume stock will likely take longer to execute than |
| you can withdrawal. It also takes time for money to | | | | more popular or high volume stock. Once you your |
| be available for trading after you deposit the money. | | | | trade has been executed you own that stock. Online |
| Most discount brokers don't have any kind of | | | | brokers will not send you a stock certificate but you |
| minimum balance to begin. There are no fees for | | | | can request them for a fee. |