Is it better to purchase stock from the Internet or a Stockbroker?

Question

I have very little experience in this and previously used Sharebuilder to buy two small stocks. Previous posts said to use a big stockbroker company like EF Hutton or Fidelity Investments. Also, do you get a certificate or piece of paper certifying that you do own stock? (I have never gotten anything official in the past). I want to buy one share of Harley Davidson stock for my niece as a graduation gift. Any help is appreciated.

Answer 1

Buying one share of stock is not very efficient and is usually a slap in the face of the company involved.  My uncle did that with Atlanta Gas Light when he was ticked off at them (gave each of us nephews and nieces one share).

Stocks are usually held in the street name of the broker, so if you wanted an actual stock certificate, that would probably cost you more than a share of the stock.  Then it would cost them how much in postage to send out a quarterly $1.32 dividend check.

She would probably appreciate the money more than one share of stock that might end up being worth less than half of what you actually spent on it.

Answer 2

Consider a situation when you require funds to purchase stocks through automatic investment plans.

Your funds in such cases should be available in your account by 1.00 PM on the trading day prior to the scheduled investment day, failing which your automatic investment plan will not work. Certain brokers offer several convenient funding options to meet this cut-off time including one-time and recurring ACH electronic transfers, check deposits, and wire transfers.

While trying to find a stock broker, keep in mind that some offer attractive investment benefits to their members. In most cases you are bound to make a certain minimum investment. Normally, for example, you are expected to buy at least one hundred shares of a stock, the reason being that all stocks trade in units of 100 shares. If you cannot buy 100 shares in one go, you may be charged very high trade fees. The accounts of those investors who cannot meet the stringent condition of minimum purchase are locked out of the stock market.

There are, however, certain brokers who solve the problem of such investors who cannot afford to spend or do not wish to spend so much money by offering fractional shares. Fractional share, as the name suggests, is just a fraction of a share. You need not, therefore, buy one hundred shares or even one share. You can buy just a fraction of a share and you can invest absolutely any dollar amount with no minimums or buy any number of shares of a stock-whether a thousand shares or one-tenth of a share.

All these benefits can be availed only if you do a thorough and intensive comparison shopping for the right stockbroker. You need to study the website of each stockbroker in detail and ask questions so that you do not repent later on.

If you are a novice in stock trading, instead of venturing on your own, it is better if you seek the advice of your stockbroker at the initial stages of your trading. Based on in-depth research that your stockbroker carries out on the financial performance of the companies, he will be able to guide you on your investment portfolio so that you can maximize your profits.

I use Sogotrade.com.

They offer cheap stock trading at $1.50 - $3.00 online equity trades.

Some of the features this brokerage offers:

1. $1.50 - $3.00 Online Equity Trades

2. Fast Order Execution

3. Excellent Customer Service

4. Scheduled Investments and Fractional Shares

5. 3 Great Trading Platforms: SogoTrade, SogoElite, Laser

6. Enhanced Online Security and SIPC Protection

7. Powerful Trading Technology

8. No Account Inactivity or Account Maintenance Fees

9. Free Dividend Reinvestments Service

10. Complementary Stock News and Stock Charts

Answer 3

There's no major difference buying on line or using a broker. they end result is the same.  There are pro's and con's for both.

Since you have no experience you would be better off using the services of a broker since they will guide you through the whole process.

Once you purchase a stock you can receive a stock certificate but it would be in your best interest to have the stock held at the brokerage firm

HOWEVER, if you're buying stock for a minor, you will have to open the account as custodian for him.   If he is not a minor just buy the stock in his name, use your address, so that if you want a stock certificate it will be sent to you.

If you don't want the certificate, use his address, with your address as an alternate.

Since you're only buying on share, I would go back to Sharebuilders where you had your account and buy the stock from them.. Most firms do not like opening an account for one share.

Answer 4

Better and most recommended method is through internet by your own. Many times a broker house 1 person handles upto 25 traders at a time and you cannot buy/sell at the desired price all the time. One more main disadvantage is you cannot effectively lock in your profit by trailing stop loss through a broker house.

I strongly recommending to go for "Online Trading" (internet)

Answer 5

Buying one share of stock is not as easy as it should be.  I believe that for your purpose, your best bet might be to contact your local bank.  Most banks will buy stock for you. Be sure to ask them how much the cost of a stock certificate will be.  It might cost as much as $35 just to get a certificate in addition to the broker commission and price of the stock.  I think that might be the easiest way to go about accomplishing your task.

Here is another alternative for you that might prove less expensive.  

http://www.oneshare.com/Stock.aspx?gifti...

On line brokers are not really set up to do what you wish to do.  They are geared towards volume traders.