Identification

• In order to trade stocks, you will complete an application for a brokerage account. The application requests general identification information along with a check or wire transfer to fund the account.
  
  

Features

• Brokerage firms are categorized as either full-service or discount firms. Full-service brokerages offer investment recommendations. Discount firms provide no advice, but are recognized for their online presence and low trading commissions.
  
  

Effects

• Full-service brokerages require you to complete detailed paperwork related to your financial goals and current assets. From there, advisers can make the appropriate recommendations. Discount firms, however, call for clients to execute trades through their online interface.
  
  

Considerations

• Dividend Reinvestment Plans (DRIPs) enable you to buy shares directly from a particular company. The DRIP form allows for systematic investing where funds are withdrawn monthly from your bank account to buy stocks.
  
  

Warning

• Completing stock market forms online exposes you to identity theft risks. It's recommended to install virus protection software on your computer to block spyware and prevent scam artists from stealing your personal information.