Buy Stocks

      Investors most commonly buy and trade stock through brokers. You can set up an account by depositing cash or stocks in a brokerage account. Firms like Charles Schwab and Citigroup’s Smith Barney unit offer brokerage accounts that can be managed online or with a broker in person. If you prefer buying and selling stocks online, you can use sites like E-Trade or Ameritrade. Those are just two of the most well-known electronic brokerages, but many large firms have online options as well.


     Once you open an account you will tell your broker how many and what types of stocks you’d like to purchase. The broker executes the trade on your behalf. In turn, he or she earns a commission, normally several cents per share. Online trading sites typically charge lower commission fees, because most of the trading is done electronically.

     After selecting the stocks that you want to purchase, you can either make a “market order” or a “limit order.” A market order is one in which you request a stock purchase at the prevailing market price. A limit order is when you request to buy a stock at a limited price. For example, if you want to buy stock in Dell at $60 a share, and the stock is currently trading at $70, then the broker would wait to acquire the shares until the price meets your limit.

     Many people wonder how forex markets differ from other markets. Forex markets are not like other financial markets like options, futures or stocks; currency trading is not a regulated exchange. Another thing that people wonder about in forex trade is the commission. People who are used to trade in stocks or futures normally use a broker. The broker ensures that he or she must do the exchange according to the instructions given by the customer. In that case, the broker has to be paid some commission whenever the customer sells or buys a tradable instrument.