Investing in stocks is a great way to grow wealth. But how do you actually start? Follow the steps given below to know how to invest in the stock market.
Decide to want to invest in stocks marketing
There are many methods for stock investing. Choose the option below that shows how you want to invest, and shows how you want to invest.
“I’m of the DIY type and am interested in choosing stocks and stock funds for myself.” Keep reading; This article breaks down the things that investors need to know. Or, if you already know the stock-buying game and just need brokerage, check out our roundup of the stock marketing course for beginners.
“I know that stocks can be a great investment, but I like that someone manages the process for me.” You may be a good candidate for a Rambo-advisor, a service that provides low-cost investment management. Virtually all major brokerage firms offer these services, which invest your money based on your specific goals. See our top pics for robot-advisors.
Once you have a preference in mind, you are ready to shop for an account.
Open an investment account
Generally, to invest in shares, you need an investment account. For hand types, this usually means a brokerage account. For those who want a little help, opening an account through a robot-advisor is a sensible option. We break down both processes below.
Worth noting: A 401 (k) is a type of investment account, and if you are participating in one, you can already invest in shares, possibly through mutual funds. However, a 401 (k) does not offer you access to individual stocks, and your choice in mutual funds will likely be quite limited.
Employer matching dollars make it worth contributing despite a limited investment selection, but once you are contributing enough to earn that match, you can consider investing through other accounts.
DIY Option: Open a Brazer Account
An online brokerage account potentially provides your fastest and least expensive way to buy stocks, funds, and many other investments. With a broker, you can open a personal retirement account, also known as an IRA – here are our top choices for IRA accounts – or if you are already saving enough for retirement. So you can open a taxable brokerage account.
If you need to take a deep dive, we have a guide to open a brokerage account. You want to evaluate brokers based on factors such as cost (trading commissions, account fees),
investment selection (if you are on the money side, for a good selection of commission-free ETFs) and investor research and instruments.
Below are three strong choices from our analysis of the best online stock brokers for beginners: TD Ameritrade (a top pick for customer support), Meryl Edge (a top pick for no account) and E-Trade (for educational resources A winner for):