How To Buy Stock Without The Assistance Of A Broker

While the most common way to buy and sell investment is by opening a brokerage account, there are situations in which it is better to acquire mutual funds and stocks by taking a different approach, which is, to buy it directly.

So, here is a list of alternative methods that you can use to buy stock without the assistance of a broker:

#1: Check if the company is offering a dividend reinvestment plan (DRIP)

When you opt for a plan such as this not only will you be able to grow your portfolio but will you allow you to avail of the cash investments option that many people are not aware of. All you have to do is send the program administrator any amount above $ 10 to $ 25 who will purchase additional shares for you. This allows all of the investor’s money to build wealth since can purchase fractional shares. However, what you must keep in mind is the fact is that you have to acquire on share of the company before opting for a unique plan such as this.

#2: Using a specialized service to buy one share

There are several companies that allow investors to purchase one share of any leading corporation so that they can, in turn, invest in a DRIP. As soon as you acquire that single share, the paperwork to enroll into a DRIP takes very little time, and you can then begin to invest without having to pay brokerage commissions.

#3: Direct Stock Purchase Plan

Several companies offer this type of plan so that investors, as the name suggests, can purchase plans directly from the company itself. In allowing these companies to automatically withdraw monthly payments from your checking or savings account to buy stock for you, the minimum initial deposit that is a pre-requisite to participate is waived off.