No doubt exists that the best way to buy or sell stocks is through the medium of a stock broker by a brokerage account. But still there are some viable ways by which you can invest in stock market without a broker. If you plan to accomplish this task you can achieve this with varying degree of success. No hard and fast rule exists that you have to link up with a stock broker to invest in stocks or mutual funds.
The concept of direct investing does have its own pros along with cons based on your personal preferences. You can also cope up with low brokerage high exposure situation. Hereby an overview is provided by which you can invest in stocks. The onus has to be on the fact that such an approach is commendable.
Investment in stocks can be done with the help of a direct purchase plan from the company
The best way to invest in stocks is where a company goes on to provide an option of direct investment option. This plan had its emergence a few years back where small investors could have ownership in a company. Most plans are going to allow investors to purchase stocks if they commit to a certain amount of money from their savings account every year. Even the possibility of a one top purchase is an option to be exercised.
These transactions are devoid of any commission, though you might incur a small transaction fee in this bargain. In fact the charges are a lot lower than you end up paying full time broker.
By cashing in on the dividend reinvestment program you can purchase stock without a broker
One of the better ways to invest in stocks is through the medium of a dividend stock program. The reasons for investment can be a linked program but it does make a point that you need to reinvest in the program. In case of a typical stock program, dividends are rolled out nearly 4 times in a year. This you can align with cash investment options that goes on regulate cash investment options. This means you can take out money from your savings or stock account.
Finally let us reconsider our thoughts on why you need to invest in stocks without the help of a stock account. In modern times no need of worry exists when you are planning to open an account with a stock broker. In case if you are worried about re hypothecation risk you have to only opt for a cash brokerage account, and do not operate on a margin account. At the same time you need to assure that an insurance coverage is in place. The key is to be smart about the firm where you are working and ensure you only purchase ordinary stocks. In doing so you can get away with ordinary commissions or stocks and not a trip to your favourite coffee shop.This augers well in the days to come.