The internet has made it easy for small investors to buy stocks online. There are a whole list of sites which charge low commissions to allow small time investors to get into investing, and most of them even guide investors on how to invest.

ShareBuilder, E*Trade, Ameritrade and Scottrade are some of the large online brokers, and they offer free analysis of stocks, grades of stocks, and all the useful quotes and profiles about a stock you might be interested in buying. The sites also offer fairly low fees, ranging from $5 to $10. The process of buying a stock is simple enough, one has to first do research. Find companies in segments of the economy that you can understand, and then use the tools on your brokerage site or sites like Google or Yahoo which also show stock information, and analyze a companies information. If their Price-to-Earning ratio is good, if their profit outlook is good, etc.

Once you have a company lined you, you have to put money into your online account. Most sites just require your checking account number and routing number, and soon you will be able to transfer money into your account, and buy a stock that you have picked out! You can set a buy option as a limit order or as a market order, or even use options to buy. A market order will buy a stock for you at the current market rate, while a limit will only buy stock at a set price or below. Be careful not to buy too small a quantity of stock, as fees are done on a “pet transaction” basis, and small trades can negate your amount of profit in fees! Always try to keep your transaction fee in mind to assure that any profit you make from a stock is not lost to the fee.

The ability to buy stocks online has revolutionized the small investor, and I urge you to make use of this power, learn how to invest, and build up a fortune for yourself!

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