You can buy shares through several common paths, depending on your location, goals, and preferences. Here’s a concise guide to the main options and what to consider:
- Banks
- Most people already have a bank account; many banks offer investment services that let you buy and hold shares directly in a custody account.
- Pros: convenient, integrated with existing accounts, usually good customer support.
- Cons: typically higher fees and less flexibility in selecting global markets.
- Online brokers (discount/brokerage platforms)
- Standalone platforms that specialize in executing stock trades with competitive fees.
- Pros: lower costs, wide access to global markets, robust trading tools.
- Cons: you’re responsible for learning how to trade and manage your investments.
- Robo-advisors and managed platforms
- Automate your portfolio with algorithm-based investing; some offer stock-focused portfolios or thematic investing.
- Pros: hands-off, diversified, relatively low effort.
- Cons: less control over individual holdings; fees may apply.
- Neobrokers and mobile-first services
- Lightweight apps with easy onboarding and quick trades; often appealing for beginners or small accounts.
- Pros: intuitive design, low or zero account minimums, frequent promotions.
- Cons: variable reliability and customer support; some platforms charge hidden costs.
- Official stock exchanges and market hubs
- For direct access to primary listings, you may use brokers that connect to major exchanges (e.g., NYSE, NASDAQ, LSE, Deutsche Börse).
- Pros: broad access to large-cap stocks and international listings.
- Cons: regulatory and currency considerations depending on the market.
Key steps to start
- Open a securities account (custody account) with a provider you choose (bank, broker, or robo-advisor).
- Fund the account with cash to cover purchase costs and fees.
- Research stocks or exchange-traded funds (ETFs) that align with your goals, risk tolerance, and time horizon.
- Place buy orders: market orders for immediate execution or limit orders to set a maximum purchase price.
- Review fees, tax implications, and any custody or withdrawal restrictions.
What to consider before choosing a path
- Fees and commissions: look for trading fees, custody fees, and any minimums or recurring charges.
- Access to markets: ensure the platform supports the stocks or ETFs you’re interested in and, if needed, fractional shares.
- Tooling and education: consider whether you want research, screeners, and educational content.
- Tax reporting and transparency: verify whether the platform provides cost basis tracking and easy tax documents.
- Security and customer support: assess security features and responsiveness of support.
If you’d like, specify your country, preferred level of involvement (hands-on trading vs. automated), estimated investment amount, and whether you want access to international markets or mainly local exchanges. That will help tailor a concrete recommendation and comparison.
