Buy Stock Direct From Company

You can buy stock direct from company and save up some money. Of course anyone can buy stocks by opening up a brokerage account, but that can come with some commission fees. If you want to buy stocks online free there are a couple of ways to do it.

Direct Stock Purchase Plan

Some companies offer something called a direct stock purchase plan; this allows investors to buy stocks direct from companies that they want to own. Most don’t charge a fee to do this, but some might. It is important to read each companies rules and regulations before doing this.

Many of these companies may actually have a minimum which you must buy when you first start out, but you may be able to get around this if you agree to have money automatically withdrawn from your bank account and used to buy stocks every month.

Drip Programs

Another way you can buy stocks direct from companies is by drip investing. In this case the company will allow you to buy additional shares with them with the dividends that you receive from your stock. The great thing about drip investing is that you can buy percentages of shares instead of whole shares.

So if you only own 1 share and it is paying 5% interest annually then you do not have to wait 20 years to save up enough money for another share, instead you will be able to buy an additional 5% of a share to compound the money faster.

The only problem is that most drip investing programs require you to already own at least 1 share of stock before they will let you invest into it. So you may need to get that one share through a broker.

Investing in these Plans

Not all companies offer such plans; in fact less than 20% of companies will let you invest money directly with them. In many ways getting a stock broker is just worth the expenses to get real time prices and a larger variety of investment.

However if you would like a list of stocks to buy without a broker visit this page.

Other Plans

There are a couple other ways to buy stocks without a broker. Many companies will have an employee stock purchase plan which will let their employees purchase shares of stocks at a discount and keep them in a retirement account so that they can benefit from the gains tax free.

There are also a number of sites such as one share and Sharebuilder which help people buy stocks without a broker, but they can be just as expensive as or more expensive than simply using a discount broker.

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