Creating Your Stock Trading Account
The Internet and E-Trade has made it easy for the average investors to buy and sell in the stock market. In the past an investor needed to employ a professional stock broker to buy and sell stocks for them but with E-Trade you can now create your own personal stock trading account. Opening a stock market account is simple, but you should have a good deal of knowledge about the stock market before you decide to do so. An online stock account will allow you to buy stock, sell stock, monitor the market in real time and research stock history but it doesn't prevent you from making disastrous financial mistakes. Like everything in life, take the time to learn as much as you can before you invest money you cannot afford to lose on the open market.
Before you open your new stock trading account here are a few things are going to need
- Social Security number
- Checking or savings account information
- Employer contact information
- Your Mailing address
- Your Email address
- Your Phone Number
Instructions for Creating a Stock Trading Account
- Take the time to learn how the stock market works before starting an online stock account and risking your money. Just because you have a stock account doesn't mean you have the knowledge or the inherent foresight to help you make decisions about where to invest, how much to invest or when to sell. The more you learn, the better able you will be able to make these stock buying and selling decisions for yourself.
- Read up and understand what discount brokers are and what services they provide. Discount brokers are the most common type of online stock account. Stock brokers will not provide you with stock advice but rather the ability to invest in stocks. All stock brokers are not created equal, compare companies for costs and for the services they offer before you open an account. Stock brokers typically charge you in a commissions range from a few dollars up to 10 percent or more of the profit you make, but they may also charge per transaction so really analyze what they are offering you.
- When selecting an online stock account, only chose one that is providing real-time information and stock quotes. Find out how often stock prices are updated so you have the freshest information available before making investments as even a few minutes of lag time can cost you financially.
- Take your time to determine which account offers the features you are interested in. As you research accounts you will find new features and benefits that may better suite your needs. Some accounts allow you to use a credit card while others do not. Quality stock accounts provide you with more ability to research information and providing particularly useful historical data. Still other accounts offer their account members consulting services.
- Select the best online stock account for your particular needs and fill out the application. Sometimes you are required to send a hard copy of the application to the broker before you can trade but many allow immediate access to the markets to trade. It is not uncommon for you to have to deposit funds into your account before being able to perform transactions, where some accounts will allow you to have an initial credit line.