You don’t need a broker to buy stocks. For a large majority of the population, there are more efficient and cheaper ways to buy stocks than using a full-service broker. Buying stocks through an online brokerage account such as WeBull or SoFi comes with many benefits over a traditional broker.
First, most online brokerages offer commission-free trades. Regular brokerages charge about $7 per stock trade. That can add up quickly, especially if you’re trading frequently or if you have a smaller investment account. An individual making only 3 stock trades per year would pay $210 in commission fees alone over 10 years. Ouch!
What Are Broker Fees?
Broker fees are the amount of money that stockbrokers charge to execute stock trades. Broker fees range from firm to firm, and typically depend on the size of the trade, so it’s important to estimate how much stock you plan on buying and selling. Some firms offer a flat-rate fee for all stock trades, whereas some firms can charge a per-share fee for stock transactions, which can be significantly more expensive.
Second, you’re able to buy stock at any time without having to deal with brokers who may have different hours. With a stock broker, you would have to work with their hours. Through an online brokerage account, you can buy stocks at anytime (as long as the market is open) without having to interact or reach out to anyone else.
Finally, these online brokerage platforms make investing in stocks easier and more accessible than ever before. You could buy stock from the comfort of your own home!
Buying stocks is a great way to invest money that will grow over time. For those with a smaller investment account, commission-free trades and accessibility make online stock trading the best choice for their needs. If you’re looking for an easy way to buy stock and want all of the perks that come along with it, then check out our list of favorite online brokers.