• About Us
  • Contact Us
  • Privacy Policy
  • Terms
  • Unsubscribe
No Result
View All Result
Live and Invest Overseas
FREE REPORT
BEST PLACES TO RETIRE
*No spam: We will NEVER give your email address to anyone else.
  • HOME
  • COUNTRIES
    • Top Destinations
      • Portugal
      • Panama
      • Belize
      • France
      • Colombia
      • Dominican Republic
      • Thailand
      • Mexico
      • Spain
      • Argentina
    • Browse All Countries
    • Best For
      • Retire Overseas Index
      • Health Care
      • Cost of Living
      • Investing in Real Estate
      • Editor’s Picks For Retirement
      • Establishing Residency
      • Starting an Online Business
      • Single Women
      • Playing Golf
  • BUDGETS
    • Super Cheap ($)
      • Cuenca, Ecuador
      • Chiang Mai, Thailand
      • The Philippines
      • Las Tablas, Panama
      • Granada, Nicaragua
    • Cheap ($$)
      • Algarve, Portugal
      • Medellin, Colombia
      • Boquete, Panama
      • Carcassone, France
      • Buenos Aires, Argentina
    • Affordable ($$$)
      • Abruzzo, Italy
      • Barcelona, Spain
      • Las Terrenas, Dominican Republic
      • Puerto Vallarta, Mexico
      • Costa de Oro, Uruguay
    • Luxury On A Budget ($$$$)
      • Ambergris Caye, Belize
      • Paris, France
      • Panama City Beach Area
  • Real Estate
  • ARCHIVES
    • Living & Retiring Overseas
    • Raising A Family Abroad
    • Foreign Residency & Citizenship
    • Offshore Diversification
    • Our Latest On Coronavirus ⚠️
  • Making Money
    • International Real Estate
    • Banking
    • Employment
    • Investing
  • CONFERENCES
  • BOOKSTORE
Live and Invest Overseas
  • HOME
  • COUNTRIES
    • Top Destinations
      • Portugal
      • Panama
      • Belize
      • France
      • Colombia
      • Dominican Republic
      • Thailand
      • Mexico
      • Spain
      • Argentina
    • Browse All Countries
    • Best For
      • Retire Overseas Index
      • Health Care
      • Cost of Living
      • Investing in Real Estate
      • Editor’s Picks For Retirement
      • Establishing Residency
      • Starting an Online Business
      • Single Women
      • Playing Golf
  • BUDGETS
    • Super Cheap ($)
      • Cuenca, Ecuador
      • Chiang Mai, Thailand
      • The Philippines
      • Las Tablas, Panama
      • Granada, Nicaragua
    • Cheap ($$)
      • Algarve, Portugal
      • Medellin, Colombia
      • Boquete, Panama
      • Carcassone, France
      • Buenos Aires, Argentina
    • Affordable ($$$)
      • Abruzzo, Italy
      • Barcelona, Spain
      • Las Terrenas, Dominican Republic
      • Puerto Vallarta, Mexico
      • Costa de Oro, Uruguay
    • Luxury On A Budget ($$$$)
      • Ambergris Caye, Belize
      • Paris, France
      • Panama City Beach Area
  • Real Estate
  • ARCHIVES
    • Living & Retiring Overseas
    • Raising A Family Abroad
    • Foreign Residency & Citizenship
    • Offshore Diversification
    • Our Latest On Coronavirus ⚠️
  • Making Money
    • International Real Estate
    • Banking
    • Employment
    • Investing
  • CONFERENCES
  • BOOKSTORE
No Result
View All Result
Live and Invest Overseas
No Result
View All Result

How To Buy Your First Stock

Your Simple Guide To Gettting Started In The Stock Market

Leon Wilfan by Leon Wilfan
Mar 04, 2019
in How to, Investing
0
stock market board green
221
SHARES
3.1k
VIEWS
Share on FacebookShare on Twitter

I’ve written to you in the past about where the market is moving, which sectors will dominate the future, and which stocks you should look at buying right now…

While overlooking one very important point…

You could be new to buying stocks and not certain how to do it.

Indeed, a number of readers have written to me over the past several weeks to ask for some practical advice on how to get started investing in the markets.

Today, therefore, I’d like to provide you with this 101 guide to buying your first stock.

Step 1—Two Types Of Brokers And One Alternative

When people think about stock brokers, they typically imagine a slick-looking guy in a suit shouting orders on the trading floor.

That’s all in the past. Today, computers do the trading.

But this doesn’t mean you can’t talk to an actual person anymore. Full-service brokers still exist… and they look just as slick as they did in the 1990s.

Their job is to get to know you personally and financially. Specifically, they’re interested in what your level of risk tolerance is, your age (time horizon), your investable wealth, etc. Full-service brokers need to learn as much about you as they can so they can make the right recommendations for your portfolio.

Often, their services extend to other investment agendas beyond the stock market, including retirement planning, tax advice, or estate planning. Hence, the name “full-service.”

They are also the most expensive option. Though minimum deposits can be as low as US$1,000, the transaction fee for a full-service broker is around US$150 per trade. If you’re buying US$1,000 worth of stock, that means you’re paying 15% in commissions.

A cheaper option, and the one preferred by most investors, are online/discount brokers.

But this doesn’t mean you can’t talk to an actual person anymore. Full-service brokers still exist… and they look just as slick as they did in the 1990s.

Their job is to get to know you personally and financially. Specifically, they’re interested in what your level of risk tolerance is, your age (time horizon), your investable wealth, etc. Full-service brokers need to learn as much about you as they can so they can make the right recommendations for your portfolio.

Often, their services extend to other investment agendas beyond the stock market, including retirement planning, tax advice, or estate planning. Hence, the name “full-service.”

They are also the most expensive option. Though minimum deposits can be as low as US$1,000, the transaction fee for a full-service broker is around US$150 per trade. If you’re buying US$1,000 worth of stock, that means you’re paying 15% in commissions.

A cheaper option, and the one preferred by most investors, are online/discount brokers.

These are essentially order-takers. They leave it up to you to decide what to invest in, when to buy, how to manage your portfolio, etc.

However, while these might not give personal advice, they still can offer plenty in terms of research, market reports, and investment education.

Most important, their fees are a fraction of those charged by a full-service broker.

All the trades are entered by you, online, with no help from a certified advisor.

Transaction fees are flat and range from US$5 to US$30 per trade, depending on the broker.

There is another alternative if you want to avoid brokers, full-service, or discount.

You could also purchase shares through a Direct Stock Purchase Plan (DSPP). Some companies occasionally sponsor these to attract small investors.

Each DSPP is different, so you should turn to the company’s investor relations department for more information on how to participate.

Step 2—Ask Yourself These Three Questions When Choosing A Discount Broker

I always recommend making trades yourself through an online/discount broker.

It’s OK to seek professional advice, but if you can get a discount to enter the trades yourself, you should. Just think how much you will save in exchange for a few extra minutes of your time.

When choosing an online broker, ask yourself three questions.

Question #1 to ask yourself when choosing an online broker is: How much do you plan to trade?

A broker may have low trading commissions but may also charge inactivity fees. That kind of broker is best suited to an active trader.

Question #2 to ask yourself when choosing an online broker is: How much do you plan to invest?

Moreover, some discount brokers allow you to open an account without a minimum deposit. Otherwise, they require US$10,000. But all work with tiered systems, whereby they offer better discounts to investors with the highest deposits on account.

Question #3 to ask yourself when choosing an online broker is: How much support would you like to have?

Finally, online brokers vary in the type and quality of support they offer. Are you OK with a chatbot addressing your issues or would you prefer a real person handling your case? Also, consider the type of investment research, market report, and educational tools on offer.

After you’ve answered these three questions, then you’re ready to choose your broker. Here are some of the best options available:

TD Ameritrade

Stock trade fee (flat): $6.95
Minimum deposit: $0.00
Best for: Beginner investors
Pros: Research quality
Cons: Slightly more expensive than others

Charles Schwab

Stock trade fee (flat): $4.95
Minimum deposit: $0.00
Best for: Beginner investors
Pros: Research quality
Cons: No forex trading

Interactive Brokers

Stock trade fee (average): $1.00
Minimum deposit: $0.00
Best for: Active traders, advanced trading, options
Pros: Low trading fees
Cons: Inactivity fee

Robinhood

Stock trade fee (flat): $0.00
Minimum deposit: $0.00
Best for: Mobile users, high-yield savings, margin accounts
Pros: Zero commissions
Cons: Limited number of stocks

Good Investing,

Leon Wilfan

Comments

Tags: stocks
Share90Tweet55
Previous Post

An Apothecary Garden Plus Other News From Los Islotes

Next Post

How You Can Stay Compliant With Offshore Taxes

Leon Wilfan

Leon Wilfan

Leon Wilfan is the Chief Investment Strategist for Lahardan Financial.In his early 20s, Leon started a career in real estate, working alongside his father to learn the principles of value investing. After five years, he took a break from his career to pursue an MBA degree at the prestigious Vienna University of Economics and Business. Vienna University is the birthplace of the Austrian Economic Theory, a way of thinking that explains that the reality of economics cannot be captured by mathematical models, but rather by the behavior of individuals on the market.

Today, Leon applies these principles in his analysis of the stock market, which allowed him to predict:

- In December 2018, the rise of gold prices
- In November 2019, the stock market expansion caused by the Fed’s “repo” operations
- In February 2020, the coronavirus crash
- In March 2020, the “QE Infinity” stock market turnaround

Leon’s highly-sought research has also been featured on CNN, Forbes, Newsmax, Money Life, Wealth Professional CA, Value Walk, and other financial outlets.You can follow his work at LahardanFinancial.com, or by subscribing to the free e-letter Cashflow For Retirement.

Related Posts

Praia da Luz, Portugal.
Investing

Independent Living Communities: Retire In Style Or Earn A Profit

by Lynn Mulvihill
April 1, 2021
0

Who’s up for checking into an age-restricted community? Hmm, no thanks. A retirement village? Maybe… How about independent living? Ah,...

Read more
Tuscany landscape at sunrise.

Comparing Best Lifestyle Options: The Americas Vs Europe Vs Asia

March 29, 2021
A typical view in Tayrona National Park Colombia.

11 Essential Tips To Plan Your Retirement Overseas

March 14, 2021
Praia dos Aveiros Beach, Algarve, Portugal.

11 Reasons Why Living In The Algarve Region Has No Match

March 7, 2021
Active senior couple riding bicycles.

8 Things To Consider Before You Commit To Moving Overseas

March 4, 2021
Alps, Italy.

You May Be Surprised At How Low Taxes In Europe Can Be

March 3, 2021
Landscape of paradise tropical island beach with perfect sunny sky.

Unretirement: How To Broaden Your Retirement Perspective

February 10, 2021
Next Post
a person working on their tax returns

How You Can Stay Compliant With Offshore Taxes

A world full of fun, adventure, and profit awaits! Sign up for our free daily e-letter, Overseas Opportunity Letter, and we'll send you a FREE report on the 10 Best Places To Retire In Style Overseas Today.

Start Your New Life Today, Overseas

how to retire overseas

LIOS Resources


  • New To LIOS
  • Ask An Expert
  • Media Center
  • Contact Us
  • FAQs

Quick Links


  • Best Places To Live
  • Best Places To Retire
  • Finding A Job Overseas
  • Real Estate

Sign up for our free daily e-letter, Overseas Opportunity Letter, and get your FREE report: The 10 Best Places To Retire Overseas In 2021

  • About Us
  • Contact Us
  • Privacy Policy
  • Terms
  • Unsubscribe

© 2008-2021 - Live and Invest Overseas - All Rights Reserved.

No Result
View All Result
  • Home
  • Countries
  • Budgets
  • Archives
  • News
  • Events
  • Bookstore
  • Newsletters
  • About Us
  • Members Area
  • Contact Us

© 2008-2021 - Live and Invest Overseas - All Rights Reserved.

WANT TO RETIRE OVERSEAS?

Sign up for our free daily e-letter, Overseas Opportunity Letter, and we’ll immediately send you a free report on the 10 BEST PLACES TO RETIRE in style overseas. Each day you’ll learn about the best opportunities for international living, retiring overseas, offshore diversification and asset protection, and investing in real estate around the world.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.