How to invest in stocks without using a broker?

Question

I am really interested in investing in the stock market, but I don't want to use a broker. Is there a website or something to go to, to invest in a companie?

Answer 1

Best Answer - Chosen by Asker

You are right not to want to use a broker. I learned that hard lesson several times. Brokers make money from commissions when you buy and sell. That means they profit from 'churning' your account. Some of them have no more experience in picking good companies than you or me. Having a brokerage license has little to do picking great stocks.
You can do better on your own with a good discount brokerage firm. Try some place like Charles Schwab. (not sure if I spelled it right either.). You won't get a full service broker, but they will help you do what you tell them you want to do and it will be a lot cheaper when you do buy or sell stock.

Before you invest, read some books on the basics of making money in the market using tried and true methods that minimize risk and allow you to identify winning companies.
There are many good books on stock investing. The "Motley Fool" books are good, and the Peter Lynch books are good. Do a search on amazon.com and you can see what is available. There will be many reviews of people that have read them sharing their thoughts on each book.

Good luck.

-Kevin

Asker's Rating:

Asker's Comment:

Still doing research on certain companies. Thanks

Answer 2

Some companies have Direct Investment Plans. You can buy directly from the company without going through a broker. Disney and Exxon are two that have Direct Investment Plans. Check out companies you want to invest in and look at the Investor Relations part of their site to see if they offer a plan.

Answer 3

Brokers are so cheap today that it's well worth spending a couple of bucks.......

But;
DRIP plans are available for little or no fees from some of the largest companies in the world. I've had DRIP's with;
GE
Johnson & Johnson
HSBC
P&G
Reuters
Barclay's Bank

Check out some books written on the subject by Chuck Carlson.

Also you can search on the web for: DIVIDEND REINVESTMENT PLANS.

Also..... Bank Of New York has several hundred plans available (I did HSBC and Barclay's Bank with them).

Answer 4

Sure you can trade (buy and sell) stocks on the internet, but you should be very careful...and you should do your research. Keep up with the companies you are interested in buying, because with out a broker, you won't know when you should sell or buy more, etc.

Using a broker is a very safe bet though, and they are not always incredibly expensive, and can be very helpful providing advice as well as assessing your financial picture.
There are companies like www.etrade.com or www.schwab.com that offer internet trading for consumers.

Source(s):

http://www.sec.gov/investor/online.shtml

Answer 5

Be really careful when you do this because if you are a first time investor, not using a broker is kind of like having surgery without a doctor.

Source(s):

CFP

Answer 6

Hi, i recommand you a good and basic tutorial for investing. it covers all Issues related to your Investing and everything around it.

http://www.tutorialforyou.net/investing/

wish it will help you.

Answer 7

E*trade is a good site. There are so many, you should just Google "online brokers" and you can find a huge amount of sites where you can buy and sell on your own for a minimal amount of money. Good luck.