When you get in stock markets, do you need a broker or can you just do it all online. is it better to do it online or in person?

what is the age requirement to hold

 

  • Alex 11:12 pm on October 27, 2009

    You cannot trade or invest in stocks unless you open an account with a stock broker. Since investing in stocks has been much facilitated by the advent of computers and internet, you can easily register your account online with any stock brokerage firm. Before you open an account, you must find out the minimum amount you have to deposit with your broker irrespective of the type of account you opt for from the website of your brokerage firm. Each broker has his own minimum account limit, which may range from $500 to $10,000.

    The guiding principle before accepting the minimum amount deposit should be your budget and also the facilities and services that the brokerage offers for a particular level of minimum amount deposit. A comparison-shopping in this respect would prove highly beneficial in long term trading. While it may be true that the less minimum deposit you pay, the less you get in form of services as well, there are some brokerage firms that deliver much more value than the minimum deposit they demand.

    A good brokerage firm may demand a minimum deposit for example $ 2,500 but may deliver much more value in terms of lower commissions, as low as $1.50 to $ 3.00 per equity trade, free dividend reinvestment plans and a large number of free trades spread over a long time. They may not even charge you any thing if your account becomes inactive for some time. If you are beginner in stock investing, these benefits can prove to be of immense value in form of risk free investments and savings.

    The next step is to choose an account. You can choose an:

    1.Individual Account
    2.Joint Account

    1.Individual Account

    As the name suggests, an individual account is an investment account that is opened for one person. You must have reached the age of majority, i.e., you should be 18 years old or above in your state of residence. The age of majority entitles you to full legal rights as an adult. Besides, you must also be a US citizen or a resident alien with a valid social security number. A resident alien is a person who is a non-US citizen but legally resides in the US and also pays the taxes.

    2. Joint Account

    A joint account is an investment account that is opened for two or more people with the proviso that both people who open accounts should have reached the age of majority in their state of residence. Joint account can either be set up as Joint Tenants with Rights of Survivorship-JTWROS- –or as Joint Tenants in Common-JTIC.

    Opening both kinds of accounts is an easy process. It takes about five minutes to open an account on line. All you need to do is to select the account type you want to open and fill in your personal information.

    You also have to read and confirm the subscriber agreements, which include the ‘account agreement’, ‘customer acknowledgment of risk’ and ‘day trading risk disclosure statement’.

    Besides these you are also required to comply with the exchange rules. So you have to read, understand and comply with both the New York Stock Exchange and the New York Stock Exchange data subscriber agreements. You should read the agreement as you scroll it down to the bottom. Read both the sections of the agreement and check both the boxes before you move on.

    The next step is to choose your user ID and password. You also have to provide your email id for correspondence. You also need to select one of the four secret questions and provide answer to them. This information is needed to assist you to get your password in case you forget about it.

    You have also to provide your personal information including your name, date of birth, residential address, marital status, employment, number of dependents, phone numbers, mother’s maiden name, social security number and country of citizenship. You have also to provide your financial information including your employer’s name, annual income, net worth and liquid net worth.

    The answer to these and a few other simple questions completes the account opening process and you are ready to start investing in stocks and shares immediately thereafter.

    Don’t get frieghtened by online stock trading as it is secure as the sites are using secure technology. Moreover, accounts are also protected by SIPC.

    The tutorial below will also be useful for you.
    http://ezinearticles.com/?How-To-Invest-In-The-Stock-Market&id=815276

    I use SogoTrade.
    They offer cheap stock trading at $1.50 – $3.00.

    Some of the features this brokerage offers:
    1. $1.50 – $3.00 Online Equity Trades
    2. Fast Order Execution
    3. Excellent Customer Service
    4. Scheduled Investments and Fractional Shares
    5. 3 Great Trading Platforms: SogoTrade, SogoElite, Laser
    6. Enhanced Online Security and SIPC Protection
    7. Powerful Trading Technology
    8. No Account Inactivity or Account Maintenance Fees
    9. Free Dividend Reinvestments Service
    10. Complementary Stock News and Stock Charts

  • squadfix 11:12 pm on October 27, 2009

    i dont’ thinik there’s an age requirement although i wouldn’t be surprised if the fine print in the account agreements say something about being 18 yrs old or having a guardian/parent cosign or something.

    online is cheaper, but thoght to offer less service. in reality, actual human brokers spend most of their time on their top ten clients and will ignore you anyway, and w/online trading sites, you get all kinds of tools and access to research reports. which is kind of valuable. you use the research reports for only the most basic of guidance.

    but if you have the money to burn and feel green enough to let a broker run a discretionary account for you, then hey, more power to you. i would never do it, but i’m in finance, so i know a tiny bit about what i’m doing.

  • Theodore B 11:12 pm on October 27, 2009

    If you want to trade stocks, you must be at least 18 years old. Therefore, if you are under 18, and you want to invest in stocks, you will probably have to open a joint account with one of your parents. You don’t have to trade through a broker. You could purchase stocks directly from the company whose stock you are interested in through a dividend reinvestment program (DRIP). Not all companies offer DRIPs, but one popular choice is Disney. You can find more information on their website: http://corporate.disney.go.com/investors/shareholder_faq.html.

    Because not all companies offer DRIPs, I would recommend trading stocks through a stock broker. There are two types of brokers: full-service and discount. A full-service broker tends to be expensive, but they will give you plenty of stock trading advice. On the other hand, a discount broker will not hold your hand, but is usually much cheaper. You have to make your own choices and most of the services are usually provided online.

    There is no better way to trade. It all depends on what you want. Trading online is usually cheaper than trading in person, so if you would like to save money, online is the better choice.

    If you choose to go with an online discount broker, I would recommend Firstrade http://www.firstrade.com/. Their website is very easy-to-use and friendly for beginners. There is also no minimum deposit requirements so you don’t have to risk a lot of money for your first time investing. Commission rates are low and service is very good. You should definitely check them out.