How to Do Stock Market Trades on the Internet
- 1). Open a stock trading account with one of the online brokerage companies. They will allow you to complete the application through their websites and get set up for trading. Linked below is the Smart Money magazine 2009 Broker Survey. The top-rated online brokers in the survey were E-Trade, Fidelity and Charles Schwab.
- 2). Fund your account. The brokers will have a minimum initial deposit of $500 to $1,000. Trading stocks on margin requires at least $2,000, and day traders must have $25,000 in their brokerage accounts. Money can be deposited in a brokerage account by wire transfer, electronic bank transfer or by mailing a check.
- 3). Become familiar with your online account order-entry screen. This screen is where you place buy and sell orders. There will be fields for the stock symbol, number of shares, market or limit order, and time frame. For limit orders, you need to enter the limit price. The online account will have different screens for trading stocks, ETFs, mutual funds and bonds.
- 4). Determine the stocks you want to trade and the number of shares to buy or sell for each stock. Your stock trading will start with buying some shares. Traditionally, stocks are bought and sold in 100-share blocks, but online trading will allow you to buy and sell shares in any amount.
- 5). Place your stock trades using the order screen. After entering the trade data, you will be required to confirm the trade information before completing the trade. Make sure the trade is pending after you place the order. Your main account screen will show the stocks you own and your pending trades.
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