In most cases, you want to use a broker, such as those from EuropeFX. However, new investors may want to learn how to buy their stocks without using a broker. It’s a good thing to know if you can’t get in contact with your brokerage firm at the time, but it does take a little extra work. Remember, you aren’t required to work with brokers to invest in mutual funds or stocks. Direct investing can have some advantages and disadvantages, so it’s best to learn about both to make an informed decision.
Invest in Shares Through Direct Stock Plans
The easiest way to buy stock without using a broker is to find companies that sponsor DSPP (Direct Stock Purchase Plans). Most of these plans allow you to buy stocks if you agree to have a particular amount taken from your savings or checking account each month for at least six months. You may also choose to make a one-time purchase.
Dividend Reinvestment Programs
Another way to buy stocks without a broker is to use the DRIP (Dividend Reinvestment Program). These plans allow you to take any cash dividends paid from the company and put them back and buy more shares. Sometimes, no fees are involved, but in most cases, they are nominal. For many stocks, dividends are paid quarterly, which means many transactions throughout the course of your investing life.
Single Share Gifting Service
In the past, you could buy one share to get your name on the shareholder list and enroll in one of the plans mentioned earlier. However, because paper stocks have been replaced with electronic ones, this option doesn’t work without a broker.
However, if you are wealthy, you may not mind paying a broker to use such gift services, although many people don’t consider it because it can be more challenging to do so.
Submit your review