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If you’re looking for a way to bring in extra income, you should consider investing in the stock market. While investing in the stock market might seem like a daunting task best left to stockbrokers, it’s relatively easy to invest directly. Let’s discuss how and why you should invest in the stock market directly.
Advantages of Direct Investment
There are several advantages to directly investing in the stock market instead of going through a broker. Perhaps the best reason to forgo the services of a broker is you can avoid costly fees. Since you’re investing in the stock market to boost your income, you don’t want commission fees to cut into your profits.
When you buy stock directly from a company, they will often waive minimum investment requirements. Although, this is with the assumption that you make a small investment each month.
These stocks are registered under your name, so you have direct control when it comes to reinvesting your dividends. This is another transaction that a stockbroker would charge you extra for.
Now that you know the advantages of direct investment, let’s talk about buying stocks online without a broker.
While an online brokerage may charge you a small fee per transaction, it’s nothing compared to the substantial commission fees you would pay if you bought stocks through a traditional stockbroker.
These online brokerages are a platform for investing and offer none of the advice that a stockbroker would. Hence, it’s important to research any company you plan on investing in.
That being said, an online brokerage is one of the easiest and cost-effective ways to manage your investments. To get started, determine which online brokerage is best for you, register your account, and then browse and research stocks.While many investors choose to buy and sell investments through a brokerage account, some investors may wonder how they can buy stocks without a broker. Here's how to do just that! Click To Tweet
Employee Stock Purchase Plans
If you’re currently employed, and your company offers an employee stock purchase plan, that’s another excellent option for investing directly in the stock market.
Many companies provide an employee discount, so you may be able to purchase stock at a lower price than the public.
If you choose to participate in your employer’s stock plan, a deduction will be made directly from your paycheck. Your company will issue a report, either monthly or quarterly, regarding the stock’s performance.
Direct Stock and Direct Reinvestment
If you’re unemployed, self-employed, or your employer doesn’t have an employee stock purchase plan, you can still invest directly in another company. With a little research, you can find out which companies offer direct stock purchase plans to investors who want to bypass a broker.
When you purchase stock directly, you can also set automatic reinvestment for your dividends. Reinvestment makes it easier to accumulate shares while avoiding commission fees.
As you can see, there are several ways to invest in the stock market without having to go through a stockbroker. With a little research and planning, you can find the method that works best for you.
It won’t be long before you see that additional income you’ve been waiting for.
Krystle Cook – the creator of Home Jobs by MOM – put her psychology degree on a shelf and dived into a pile of diapers and dishes instead. She is a wife and mother to two rambunctious boys, sweating it out in her Texas hometown. She loves cooking, DIY home projects, and family fun activities.