How To Get Started Investing In The Stock Market

    So I recently was just asked in a previous post of where do I start to get into the market and how much money would I need to get into the game?

    There are multiple ways to begin investing in the stock market. Here I will suggest a few common ways to start investing. One option would be to open an online brokerage account. Opening an online account is very easy to do and is a great way to learn about stocks because it provides you with the tools to do your own research and allows you to buy and sell stocks at your discretion. Some online accounts require a minimum deposit to get started. However, Sharebuilder is an online service that requires very little money to get started. They state there is “No account minimum open an account with any amount.” I personally have experienced their service and highly recommend someone that would like to start investing to check out ShareBuilder and with a fee of $9.95 a trade it’s a low cost way to get your feet wet. Another great online broker is Scottrade. I personally invest in stocks through Scottrade. To open an account requires a modest $500 min Deposit and trades are only $7.00. I would suggest if you want to trade individual stocks to start out with at least $500. If you invest with less then $500 the transaction fees of buying and selling stock add up rather quickly and may affect your return on investment. Other comparable online reputable brokerage accounts are E*Trade (no min for retirement account $500 min deposit $9.99 a trade), Fidelity (min deposit $2,500 as low as $7.95 a trade), and TD Ameritrade ($1,000 min retirement account $2,000 min non retirement account $9.99 a trade) to name a few. I have only had experience with ShareBuilder and Scottrade so do your research to figure out which online brokerage best serves your needs. Online trades are subject to change and may very in prices depending on your account balance.

    Another way to invest would be through your bank. Banks offer many of the same types of services that online brokers provide and banks have the added benefit of building the one on one relationship that many desire. This is a great way for people that are uncomfortable investing online to have exposure to the stock market. Plus when you have a question about investing you can pay a visit to your local branch and do your banking at the same time.

    The last common way to invest would be through your employer in a retirement account. Depending on your employer they may match your contribution up to a certain percentage of your income. This is definitely a great advantage and gives you jump start on building wealth. I tell everyone that I come into contact with to take advantage of the company match. IT’S FREE MONEY!!! Another advantage is that the contributions you allocate per pay period are tax deferred, which means you will not be taxed until retirement. This will also lower your taxable income and may put you into a lower tax bracket. And lastly if you happen to change jobs you can always take your money with you and roll it over into another account.

If you have any specific questions that I didn’t cover please comment as this was only a brief overview of ways to begin investing in the stock market.

Thank You,

Clay-

If this information has been beneficial feel free to let me know. This will give me a good sense of direction for future topics.