Use of an Online Brokerage Account

Online brokerage accounts have grown in popularity, and many people like the idea of making their own stock trades. Using an online brokerage account is fairly simple as long as you have a fairly good understanding of stocks and understand the risks of trading and investing.

Instructions

Things You'll Need:

• Computer & Internet
• Money
• Online Brokerage

1. Step1
   
   Choose what Brokerage you'd like to Use

   Before you can start trading stocks online, you'll have to choose which online brokerage that you'd like to use. There are many to choose from including eTrade, ScottTrade, and many more. Take the time to compare each brokerage, including what the minimum deposit is and how much you'll pay for trades. Also check to see what tools each brokerage has available for your use.

2. Step2

   Once that you have chosen an online brokerage to use, you'll need to set up your account. Setting up an online brokerage account is a relatively simple process. You'll need to enter all of the requested information and set up a user name and password so that you can log in to manage your account and make trades.

3. Step3

   During the sign-up process, you will also have to answer questions about your investing experience, risk tolerance, and investment goals. These are required and you will be asked them no matter which brokerage you select.

4. Step4
   
   Add funds to your account

   Before you will be able to use your online brokerage account, you will need to put funds into your account. Most accounts will allow you to do this in a number of different ways. You can complete an electronic funds transfer, or send a check to open your account. Other options may be available as well.

5. Step5
   
   You are Ready to Buy and Sell Stocks

   Once that your account has been set up and you have made a deposit, you are ready to begin buying and trading stocks. Most online brokerages have tools that will assist you with choosing stocks. They'll also allow you to set up buy and sell orders so you can buy or sell stock when it reaches certain prices without having to manually do it. It's wise to tour the website and make sure that you understand how it works before purchasing or trading any stocks.

6. Step6
   
   Use the Research Tools that you have Available to you

   Take advantage of the online brokerages research tools that are available to you. Most them them will have lots of ways for you to research and compare stocks. Use these tools to gather information when buying and selling.

7. Step7

   Once you have set up an online trading account, you can add or withdraw funds at any time. In many cases, you may have to sign and fax or send a request to have funds withdrawn from your account. You will have to follow the guidelines that are set out by your online brokerage.

Tips & Warnings

• Be very careful when investing in the stock market without professional advice. It is not wise to invest a large amount of your total portfolio in this manner.