How to buy stocks – investing guide for beginners

If you want to buy stocks online, you’ll need to go through a broker. But the concept of using a stockbroker to invest is quite different from how it used to be. Nowadays, brokers are available through extensive, online investment platforms, and they are open to everyday investors all over the globe. But if you were to rewind a decade or two, you’d have to go through larger institutions and work with an individual broker to gain exposure to the stock market. Of course, the benefits of using online brokerage platforms far outweigh the benefits of the ‘old school’ investment route. 

But first and foremost, you have to know which platforms shine above the others. With that said, there are two that fit the bill here:

• eToro - best overall stock broker
• Pepperstone - best stock broker for experienced traders
  
  

eToro - visit here

67% of retail investor accounts lose money when trading CFDs with this provider

eToro has rapidly become one of the go-to sites for investing in the stock market. These guys are regulated in multiple jurisdictions around the world, including the UK, Australia, the USA, and many other places. Of course, this makes eToro widely available, but the structure of this site is what really pulls in the customers. eToro boasts zero-commission stock trading, access to 17 total exchanges from around the world, and thousands of stocks in total. New users can get started from as little as £10 too, which means that you don’t need a ton of cash to get the ball rolling.

What’s more, eToro is one of the few sites that has truly mastered social trading. This is a form of trading where you can copy other investors, trade by trade, and it is available to use free of charge. Social trading is especially useful for those who are new to stock investing, as it can help users build confidence, and potentially gain better returns.

Pros

• Mobile app available on Android and iOS
• Competitive stock spreads
• Free access to social trading

Cons

• Inactivity fees do apply
• Withdrawals can carry fees (method depending)

>>> Sign up to eToro here <<<

Cryptoasset investing is unregulated in most EU countries and the UK. No consumer protection. Your capital is at risk. CFD crypto trading is unavailable for clients residing in the UK and US. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Pepperstone - visit here

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.2% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Pepperstone has long been regarded as a terrific platform for Forex trading. Of course, this involves trading on currencies, but the stock trading setup is also very competitive. Pepperstone has zero fees for trading execution, it allows you to trade in multiple currencies, and it is an incredible site for spread and CFD trading. These are essentially forms of leverage trading where you can boost your trading power, in effect, by using the available leverage tools. If that wasn’t enough, Pepperstone also provides 24/7 support for all users, combined with MT4 and MT5 trading software for the most professional experience possible.

Pros

• State of the art trading software
• Support of leverage trading
• No fees for deposits or withdrawals

Cons

• Not overly suitable for beginners
• Heavy focus on CFD trading

>>> Sign up to Pepperstone here <<<

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.2% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

How to Buy Stocks Online

If you are looking to get started with stock investing as quickly as possible, the best way to do this is through online avenues. And since we’ve identified two of the top platforms for buying stocks above, we figured it would be beneficial to also show you how you can register for a new account. This is necessary at any reputable investment site, and the good news is that it doesn’t take very long to do. So without further ado, here are the steps you must follow:

1. Choose an appropriate brokerage site
2. Complete the registration process (must provide personal info)
3. Login and verify your details as soon as you can
4. Deposit funds through a supported method
5. Choose your first stocks and hit that buy button

Getting Started With eToro

To start buying stocks online, we recommend that you sign up with eToro. Compared with other stock trading sites, eToro has significant advantages and benefits that are enjoyed by all customers. And since eToro is regulated in so many nations, you can feel secure that you are using a trustworthy platform when trading.

>>> Register with eToro here <<<

67% of retail investor accounts lose money when trading CFDs with this provider

How to Trade Stocks Online

There is actually a distinct difference between buying and trading stocks online. If buying, you are only ever making stock purchases, usually with the intention of holding long term. If trading, you will execute buy and sell orders in an attempt to outperform the market. But no matter which activity you are looking to engage in, it is just as easy to set up a stock trading account as it is to register for a ‘buying’ account, as identified below.

1. Pick the right broker for your needs
2. Create login details and supply personal information (name, DOB, etc.)
3. Sign in and verify your DOB, name, and address
4. Deposit funds with your preferred method
5. Browse the available trading products and pick one
6. Make your first transaction

Getting Started With eToro

Once again, we recommend that you register with eToro for the best stock trading experience. And with eToro offering a wealth of trading options, markets, and stocks overall, you won’t be disappointed by your experience here.

>>> Trade stocks with eToro here <<<

67% of retail investor accounts lose money when trading CFDs with this provider

How to Fund Your Account

Before you can even think about investing in any stocks after you sign up with eToro (our number one recommendation), you must fund your account. Of course, you must meet the minimum deposit requirement for your transaction to be accepted, which is £10 on eToro. With that said, you have a few methods to choose from, each with its own unique advantages, as discussed below:

Debit Card

Most of us own a Visa or MasterCard debit card. These are connected to our primary bank account in most cases, and naturally, you must enter your card details to execute a deposit with this method. Not everyone feels comfortable doing this, even with the latest SSL encryptions being used for online payments at top sites. However, if you don’t mind sharing such information, debit cards are arguably the quickest and easiest way you can fund your account.

Credit Card

Credit cards are obviously a little different from debit cards. While yes, they are also connected to your bank account, these cards let you spend money that you might not have readily available. You’ve also got added payment protection with credit cards, which is why many people like to use them for more substantial purchases. Much like debit cards, credit card transactions will come through instantly.

PayPal

Unless you already have a PayPal account, you’ll need to set one up. This is free to do, and it takes just a few minutes. Regardless, it still means you’ve got the hassle of setting up an account before using it, making PayPal less convenient than debit or credit cards. However, once your account is set up, you can enjoy some awesome benefits including top-tier security, higher deposit maximums, as well as 24/7 fraud detection services for your account.

Bank Transfers

Bank transfers have a nice degree of security to them since you must manually perform and approve the transaction. This payment option also tends to have higher deposit maximums, and with the introduction of ‘rapid transfers’, deposits are now processed almost instantly with bank transfers. The one and only downside is that there is always the possibility of human error here. That’s because you must accurately enter the bank details for your investment provider, and there is usually an extra reference code related to your personal account too.

Skrill/Neteller

Skrill and Neteller are two different digital wallets that you may also use to fund your stock trading accounts. Much like PayPal, these guys are third party providers that boast higher deposit maximums, instant transactions, and top-level security features. You can also manage accounts in multiple currencies with Skrill and Neteller.

>>> Visit eToro here to get started <<<

67% of retail investor accounts lose money when trading CFDs with this provider

What to Consider When Buying Stocks

Making the decision to get involved in the stock market isn’t one to be taken lightly. After all, stock markets can be volatile, and picking individual stocks to trade can be even more so. On that note, you can manage the risks involved with stock investing by taking the following into consideration:

Volatility

Since we’ve mentioned volatility above, we may as well start with this one. Volatility simply means that stock markets can go up and down in value. This is true of the broader indexes, as well as the stocks that make them up. So before you invest, you have to be prepared to ride out those ups and downs.

Account Fees

Fees are extremely important when buying and selling stocks. Basically, the more you can wipe out any unnecessary fees, the better. That’s why we love platforms such as eToro, as they have removed trading commission, deposit fees, as well as other fees that are common with less popular sites. Of course, the more you can reduce these fees, the more cash you’ll have to trade with.

Investment Intentions

Before you get involved in the stock market, it’s important to assess what your actual intentions are. Some people like to simply invest in index funds for a less volatile and more predictable return, but these returns won’t exactly make you millions overnight. That’s why some people prefer to actively trade stocks in search of greater returns. You need to think about what kind of stock investor you want to be while ensuring that this aligns with your personal risk tolerance.

Available Funds

No matter what somebody might tell you, the stock market isn’t predictable. If you choose to invest, you can lose money. Of course, you can also make money, but we cannot turn a blind eye to the potential downside of stock investing. That’s why we recommend that you only invest what you can afford to lose. In addition to this, make sure that you aren’t investing money that you may well need in the near future.

Is it Safe to Buy Stocks Online?

As long as you stick with regulated, reputable, and ideally, popular investment platforms, it is perfectly safe to buy stocks online. On that note, if you sign up with eToro, you can rest assured that you’ve joined a platform that ticks all of these boxes. However, picking a reputable stock investing platform is just half of the battle when it comes to keeping your funds safe. The other half involves certain things that you can personally do to keep your account as secure as possible, as identified here:

• Enable two-factor authentication
• Verify your account details as soon as possible
• Sign out of your investment account when finished
• Avoid using public WiFi or any unsecured internet connection when trading
• Establish Face ID or Touch ID when using apps
• Set up email backups, unique PINs, and security questions

In most instances, you can proceed to follow up on these tips through the settings within your account. 

>>> Buy stocks with eToro here <<<

67% of retail investor accounts lose money when trading CFDs with this provider

How to Sell Stocks 

Eventually, there will come a time when you decide that it is appropriate to sell the stocks that you hold. The good news is that these can usually be done through the same brokerage site that you have used to purchase them in the first place. And when you do want to sell, you have two main ways in which to do this. Firstly, you can simply choose to sell your shares at the current market value, and then place the sell order through whichever product you are using.

The other option you have is to sell your shares at some predetermined future value, which is known as a stop order. This allows you to automatically sell your shares if the price reaches whatever you decide. Of course, a downside of this is that the stock might not reach the price you have set!

Are Stocks a Good Investment?

Over the years, the stock market has long been a good investment choice. It is far less speculative than other markets such as cryptos, and on the whole, stock market values have consistently increased throughout history. That’s why many choose to invest in index funds. However, if you go down the individual stock picking avenue, whether the stocks you pick would be described as a good investment can depend on a bunch of financial indicators.

With that said, stocks such as Amazon, Apple, Tesla, and others have long been good stock picks, although these carry a higher price per share than many others. 

>>> Visit eToro here to get started <<<

67% of retail investor accounts lose money when trading CFDs with this provider

Final Thoughts

At this point, it should be clear that it is very easy to get started with buying stocks, no matter where you might be based. It should also be apparent that the stock market carries plenty of potential for healthy returns, yet this does depend on your investment choices within this asset class. And finally, if you want to buy stocks at one of the most competitive platforms available right now, make sure you sign up with eToro today.

>>> Sign up to eToro now <<<

67% of retail investor accounts lose money when trading CFDs with this provider

FAQs

Can I buy stocks in any country?

In the vast majority of countries around the world, you can invest in stocks, yes.

Is there a limit to how many stocks I can buy?

Not really. The only limits you might face are how many stocks you can purchase for a single buy order, although this doesn’t always apply.

Can I buy stocks without ID?

No, you will need to pass the KYC process before you can buy any stocks at regulated sites.

Can I buy stocks instantly?

After you’ve registered and funded your account, you can immediately start buying stocks, yes.

This article is supplied by Sitelink and is not necessarily representative of the views of The Herald.