By Adam Jusko, ProudMoney.com, firstname.lastname@example.org
If you’re a beginner to the world of stock buying and selling, this guide will help you get started. Note that this is NOT a guide on how to choose which stocks to buy, but instead the basics of how to set up a stock trading account if you’re a beginner.
Step 1: Choose An Online Broker
In order to buy and sell stocks, also known as “stock trading”, you will have to have an account with an online broker. “Online broker” sounds sort of intimidating and mysterious, but an online broker is just an online trading platform — it’s a company’s website (or mobile app) where you go to buy and sell stocks, and also to see your current stock holdings, deposit money for trading, etc. You have probably heard some of these brokerages’ names before, even if you’re not sure how they work — Charles Schwab, E-Trade, Robinhood, Fidelity, TD Ameritrade, etc. All of these will let you set up an account for free, and once you’ve done the next step below, you’ll be ready to buy stocks.
Step 2: Fund Your Account
If you’re going to buy stock, you’ll need money in your account. Whichever online stock broker you choose, there will be a way to add money. In most cases, you’ll give information about your bank account (account number and bank routing number) and how much money you’d like to transfer to the broker’s platform. Here’s how that looks on E-Trade: