The only thing that is required is money and a qualified broker to begin investing. Access to a broker was not always as commonplace as it is today. Today though nearly anyone can open a brokerage account and begin to make trades. There are some simple steps and considerations that can prepare you to place your first trade.
Broker
You will need to select a brokerage company. This is the company that your account will be with. They will be who actually places your trades on the market as well. It is a requirement to invest money in stocks, but there are some simple things to look for.
You should choose a reputable brokerage company. If you have access to the internet you can do all the research that you will likely need to do online. Select a broker that allows you to connect with them in the ways that you want. If you prefer to invest money in stocks over the telephone then be certain that your broker allows that.
Funding Your Account
This is a major part of preparing to invest money in stocks. With most trades that you will execute you will need cash in your brokerage account. Each account may have different requirements. Some accounts have a minimum opening balance. It is possible to find some with lower requirements if necessary. You should be aware of the other differences that may exist between the accounts as well though.
In addition to an opening balance, you should learn whether there is a minimum balance requirement. In some cases there may be fees attached to specific requirements, such as balance requirements. You should understand all the details before opening your account.
Commission and Fees
The way that many brokerage firms work is based on commissions. Each time one of your trades is executed a commission is charged. There are significant differences between the commissions that are charged by various brokerage firms. Different types of trades executed through the same broker may result in different commission charges too. This makes researching the charges for the specific types of trades you place an important part of choosing a broker. There may be other fees charged by the broker as well. These may include monthly maintenance fees and others.
Overview
Nearly anyone can invest money in stocks, but most people need a qualified broker to place the order. Not all brokers are the same, as you read above. Some brokers and accounts only allow individuals to trade in specific stocks and funds. By understanding what your account will enable you to do and what your account will require from you, you can choose a suitable account. That is the first step opening the account.
Once the account is open and funded the only thing that likely remains is to choose the stock(s) that you want to trade. You should realize that there is the potential to lose money when trading stocks. A successful investment plan can also result in gains. You can find additional information regarding how to choose stocks to invest in. The choices are yours, and the time to invest money in stocks can be now for nearly everyone.