How to Invest in Stocks Directly

Want to jump straight to the best? Most of our users prefer Interactive Brokers for stock trading.

If you felt burned by the stock market following the financial crash of 2008, you are not alone. The financial crash of 2008 left many wary of investing in the stock market and working with stockbrokers. In recent years, however, the investment landscape has undergone a transformation. Between the internet and numerous investment apps, it is possible to purchase stocks directly online without a broker. As a result, you have more flexibility in what you trade, when you trade and how much you pay in fees.

Whether you own stock or are looking to buy stock for the first time, it is worth considering whether buying stocks directly is right for you. Read on to learn more about your options for buying stocks without a broker.

Best Ways to Buy Stocks Without a Broker

There are numerous options if you want to buy stocks without a broker. Companies offer stock-purchasing plans that vary depending on if you are an employee of the company.

 If you are an employee, you can purchase company stock directly through a variety of options such as a direct purchase plan (DPP), a company stock purchase plan (SPP) or a company stock option purchase plan (SOPP). These plans typically allow employees to buy shares in a company without paying brokerage fees or requiring a brokerage account. Though the cost of investing is lower, most DPPs, SPPs and SOPPs include limits to both the amount of stock you can purchase as well as the amount deducted from your monthly paycheck. This can limit your potential returns. 

If you are not an employee, you can buy stock from a company directly through either a Direct Stock Purchasing Program (DSPP) or a Dividend Reinvestment Plan (DRIP). By purchasing stock through a DSPP or DRIP, you can bypass brokers and brokerage fees to buy stock directly from your company of choice. 

Best Ways to Buy Stocks From a Company Directly

The best ways to buy stock directly from a company are a DSPP and DRIP. Both options allow you to have more choice and control over what you invest, how much you invest and how long you invest.

1. Direct Stock Purchasing Program (DSPP) 

A DSPP allows you to purchase stock from a company directly without having to pay commissions to a personal or online broker. Typically, the company you’re investing in will take a specified amount regularly from your checking or savings account. You can also make larger

one-time purchases instead of monthly amounts. If your company pays dividends, you also can reinvest your dividends back into the company by purchasing stock. DSPPs are an attractive, low-cost option to individuals who want to purchase stock from companies that they trust while retaining a high degree of self-directedness. 

2. Dividend Reinvestment Plan (DRIP)

Companies distribute their profits to shareholders through dividends, or corporate payments, to encourage continued investment in their company. If you are a shareholder with a DRIP, you can continue purchasing company shares instead of receiving cash dividends. Since DRIPs don’t require a broker, you forgo broker fees and commissions, reducing the costs of investing. 

If you have a DRIP, you purchase fractions of shares rather than whole shares. This means that the amount of a stock you purchase is smaller because you will be buying parts of shares instead of the whole amount. However, a DRIP is advantageous for individuals who wish to stay with a stock long-term and maximize compound returns. 

Is it a Good Idea to Buy Stocks Without a Broker? 

Online brokers can offer you many advantages that traditional brokers do not:

  • Save you money and time with lower brokerage fees and real-time access
  • Reduce the personal biases of brokers who promote standard investment packages
  • Are convenient, allowing you to make trades from anywhere with internet access
  • Provide analytical tools that can help you evaluate common stocks and preferred stocks to see which is a better fit for your investment goals

Investing with online brokers can have disadvantages:

  • May be overwhelming for new investors with little to no market knowledge
  • May be addictive, causing investors to spend too much too fast
  • Allow you to make trades without considering how it affects your overall strategy
  • Are dependent on computers and vulnerable to computer errors

If you decide to trade with an online broker, remember that you will have to put in the time to do research, develop a strategy and make adjustments along the way if you want to see a return on investments. 

Best Commission Free Brokers to Buy Stock

Commission-free brokers are a great choice if you’re looking to capitalize on the flexibility and lower-costs of online brokers. Some of the best commission-free brokers are:

get started securely through Webull’s website
Best For
Intermediate Traders and Investors
N/A
1 Minute Review

Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.

Webull is widely considered one of the best Robinhood alternatives.

Best For
  • Active traders
  • Intermediate traders
  • Advanced traders
Pros
  • No account maintenance fees or software platform fees
  • No charges to open and maintain an account
  • Intuitive trading platform with technical and fundamental analysis tools
Cons
  • Does not support trading in mutual funds, bonds or OTC stocks
get started securely through SoFi’s website
Best For
IPO Investing
N/A
1 Minute Review

SoFi’s mission is simple: to help reach clients like you reach their financial independence and realize their ambitions. SoFi knows that this independence comes from making decisions that help your money start to work for you in the long run. The brand helps individuals make these decisions through personal financial products such as personal loans, student loans and automated and active investing

The brand additionally provides in-person experiences such as educational and networking events, personalized guidance from experienced financial planners and one-on-one advising with professional career coaches. SoFi’s services have been highlighted in outlets such as Forbes, Medium, and CNBC’s Make It.

Best For
  • IPO Investing
  • Mobile Investing
Pros
  • U.S.-based customer service
  • Highly-rated mobile app for iPhone and Android
Cons
  • Only available in the U.S.
get started securely through Moomoo’s website
Best For
Active Traders
N/A
1 Minute Review

Moomoo is a commission-free mobile trading app available on Apple, Google and Windows devices. A subsidiary of Futu Holdings Ltd., it’s backed by venture capital affiliates of Matrix, Sequoia, and Tencent (NASDAQ: FUTU). Securities offered by Futu Inc., regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Moomoo is another great alternative for Robinhood. This is an outstanding trading platform if you want to dive deep into smart trading. It offers impressive trading tools and opportunities for both new and advanced traders, including advanced charting, pre and post-market trading, international trading, research and analysis tools, and most popular of all, free Level 2 quotes.

Get started right away by downloading Moomoo to your phone, tablet or another mobile device.

Best For
  • Cost-conscious traders
  • Active and Advanced traders
Pros
  • Over 8,000 different stocks that can be sold short
  • Access trading and quotes in pre-market (4 a.m. to 9:30 a.m. ET) and post-market hours (4 p.m. to 8 p.m. ET)
  • No minimum deposit to open an account.
Cons
  • No chat support
Get started securely through Axos Invest’s website
Best For
Sign Up Bonus
N/A
1 Minute Review

It seems like new digital investment management platforms are sprouting up left and right, and for good reason — there’s a great need for easy, straightforward investment management that doesn’t cost an arm and a leg in fees or to get started. If you’re new to investing or an old hat who wants to make the switch to a virtual manager, deciding which features you need can be confusing if not overwhelming.

If you want a no-frills financial management platform, Axos Invest (formerly WiseBanyan) takes a traditional but sophisticated approach to automated online investing.

Best For
  • Traditional investors trying out an automated investor for the first time
  • New investors that want to take a hands-off approach to portfolio management
Pros
  • Straightforward automated investing
  • Relatively low account minimum and automated investing fee
  • A solid roster of available investment account types
Cons
  • Not a stand-out from other services if you’re someone who likes all the bells and whistles with your digital financial platform
  • No direct relationship with a human financial advisor
get started securely through Interactive Broker’s website
Best For
GlobalAnalyst Product
N/A
1 Minute Review

This latest groundbreaking technology is IBKR GlobalAnalyst, a new trading tool that helps investors compare the rate of PEG or price-earnings growth valuations and provide more immediate and comprehensive financial metrics of stocks, globally.

Recognizing that stock selection can be challenging for investors to compare the valuations of domestic and international stocks, Interactive Brokers created GlobalAnalyst to offer investors a simple, yet powerful tool to easily evaluate investment opportunities around the world.

Using GlobalAnalyst, investors can search for stocks by region, country, industry, market capitalization and currency to uncover undervalued stocks worldwide. The resulting table displays the current market and financial metrics, including the PEG Ratio. The PEG Ratio is the PE ratio divided by the three-year compound earnings growth rate, and smaller PEG Ratios typically indicate undervalued companies.

Best For
  • Price earnings growth valuations
Pros
  • Easily evaluate investment opportunities
Cons
get started securely through eToro’s website
Disclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Best For
Copy Trading
N/A
1 Minute Review

eToro is a broker that offers access to over 25 of the world’s most popular cryptocurrencies, forex and over 1600 stocks. They have a few unique education and useability tools. Traders can begin buying and selling in as little as 10 minutes.

eToro’s unique CopyTrader feature allows new investors to “copy” the buy and sell orders of professional investors, while the company’s eToro Club feature provides investors with a range of additional education tools and resources. 

Best For
  • Traders looking for an easy-to-use platform
  • Traders who want to practice their trades using a virtual account before entering the market
Pros
  • Simple platform that is easy to master
  • CopyTrader feature that allows new traders to copy the same strategies used by professionals
  • Virtual dummy account that gives you $100,000 to practice trades
Cons
  • High non-trading fees

While many brokers are commission-free, it does not mean you won’t be paying fees to use their services. Brokers may charge other fees such as per-contract fees, account maintenance fees, account transfers and withdrawal fees among others. When researching a broker, make sure to take into account all fees associated with their services to see if they are a good fit for your needs.

If you’re ready to start dipping your toes back into stock market investing but want to retain your independence, you have some choices. You can invest in a stock or company directly through a variety of plans depending on whether you are an employee of a particular company. Alternatively, you can turn to the convenience and services offered by an online broker. Both options provide you with more flexibility and control over your trades and investments.

Best Stocks of the Day

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Gainers

Session: May 19, 2022 4:00 pm – May 20, 2022 3:59 pm
Symbol Open Close Change Change % Volume
Buy LEJU Stock – Trade Now LEJU
Leju Hldgs
0.32 4.59 4.28 1352.94% 1.47M
Buy BEST Stock – Trade Now BEST
BEST
0.28 1.09 0.81 287.85% 3.38M
Buy BRW Stock – Trade Now BRW
Saba Capital Income
4.10 8.18 4.08 99.51% 12.31K
Buy GOVX Stock – Trade Now GOVX
Geovax Labs
0.73 1.35 0.61 84.01% 31.82M
Buy GLUr Stock – Trade Now GLUr
The Gabelli Global Utility and Income Trust Rights (expiring June 23, 2022) Rights
0.03 0.04 0.02 60.00% 66.83K
Buy SIGA Stock – Trade Now SIGA
SIGA Technologies
8.65 12.30 3.65 42.19% 73.33M
Buy NNVC Stock – Trade Now NNVC
Nanoviricides
1.85 2.59 0.74 39.99% 1.23M
Buy RDBX Stock – Trade Now RDBX
Redbox Entertainment
3.80 5.30 1.50 39.47% 40.59M
Buy IMMX Stock – Trade Now IMMX
Immix Biopharma
1.63 2.27 0.64 39.26% 110.78M
Buy TXMD Stock – Trade Now TXMD
TherapeuticsMD
2.27 3.10 0.83 36.56% 21.90M
Buy EBET Stock – Trade Now EBET
EBET
2.88 3.92 1.04 36.11% 31.64K
Buy TOMZ Stock – Trade Now TOMZ
TOMI Environmental Solns
0.73 0.95 0.22 30.30% 1.60M
Buy BODY Stock – Trade Now BODY
Beachbody Co
1.27 1.62 0.35 27.16% 3.97M
Buy ALLR Stock – Trade Now ALLR
Allarity Therapeutics
1.64 2.07 0.43 26.21% 69.86K
Buy PRTG Stock – Trade Now PRTG
Portage Biotech
6.62 8.21 1.59 23.94% 55.33K
Buy GET Stock – Trade Now GET
Getnet Adquirencia
1.47 1.79 0.32 21.76% 1.55M
Buy MDXH Stock – Trade Now MDXH
MDxHealth
7.60 9.23 1.63 21.42% 2.82M
Buy IBIO Stock – Trade Now IBIO
iBio
0.23 0.28 0.05 20.17% 8.17M
Buy AEMD Stock – Trade Now AEMD
Aethlon Medical
1.11 1.33 0.22 19.80% 3.16M
Buy NMTC Stock – Trade Now NMTC
NeuroOne Medical Tech
0.79 0.94 0.15 18.89% 14.02K

Losers

Session: May 19, 2022 4:00 pm – May 20, 2022 3:59 pm
Symbol Open Close Change Change % Volume
Buy RESI Stock – Trade Now RESI
Front Yard Residential
6003.61 12.32 -5991.29 -99.80% 0.43K
Buy XDNA Stock – Trade Now XDNA
Strategic CRISPR & Gene Editing Technology ETF
2801.99 9.56 -2792.43 -99.66% 1.37K
Buy ATHX Stock – Trade Now ATHX
Athersys
0.76 0.26 -0.50 -65.57% 44.36M
Buy EVFM Stock – Trade Now EVFM
Evofem Biosciences
1.10 0.40 -0.70 -63.30% 20.70M
Buy CELZ Stock – Trade Now CELZ
Creative Medical Tech
1.53 1.02 -0.52 -33.67% 2.65M
Buy VEDU Stock – Trade Now VEDU
Visionary Education Tech
3.05 2.15 -0.90 -29.51% 2.97M
Buy BGXX Stock – Trade Now BGXX
Bright Green
15.70 11.35 -4.35 -27.71% 2.88M
Buy MKD Stock – Trade Now MKD
Molecular Data
0.10 0.08 -0.03 -24.93% 61.41M
Buy TIGO Stock – Trade Now TIGO
Millicom Intl Cellular
22.20 17.08 -5.12 -23.05% 40.01K
Buy ROST Stock – Trade Now ROST
Ross Stores
92.70 71.94 -20.77 -22.41% 33.67M
Buy SJ Stock – Trade Now SJ
Scienjoy Holding
2.97 2.32 -0.65 -21.89% 1.80M
Buy NURO Stock – Trade Now NURO
NeuroMetrix
5.50 4.30 -1.20 -21.82% 8.90M
Buy ENDP Stock – Trade Now ENDP
Endo International
0.58 0.46 -0.11 -19.59% 26.22M
Buy BPTS Stock – Trade Now BPTS
Biophytis
1.44 1.16 -0.28 -19.45% 3.71K
Buy DPSI Stock – Trade Now DPSI
DecisionPoint Sys
6.98 5.67 -1.31 -18.72% 46.65K
Buy OBLG Stock – Trade Now OBLG
Oblong
0.36 0.29 -0.07 -18.29% 29.13K
Buy PTE Stock – Trade Now PTE
PolarityTE
2.86 2.37 -0.49 -17.13% 26.05K
Buy MGTA Stock – Trade Now MGTA
Magenta Therapeutics
1.46 1.22 -0.25 -16.79% 46.00K
Buy FRGE Stock – Trade Now FRGE
Forge Global Holdings
20.87 17.51 -3.36 -16.09% 71.31K
Buy FLGC Stock – Trade Now FLGC
Flora Growth
1.25 1.06 -0.19 -15.20% 1.52M

Frequently Asked Questions

Q

How can novices buy stocks without a broker?

1
How can novices buy stocks without a broker?
asked
A
1

Some of the best ways are through DRIP and DSPP plans. You can purchase fractional shares and invest the dividends to increase your holdings in the company. 

 

answered
Q

What is a simple way to quickly buy stocks?

1
What is a simple way to quickly buy stocks?
asked
A
1

You can use online brokers such as TD Ameritrade or E*TRADE.

answered