what is the process for buying shares without broker?

Question

i wanted to own some shares am new to this field i have done entire process and completed to know everything about shares but the only thing m not able to understand is after opening the DEMAT account.what is the process to buy the shares without brokers??

is it possible to buy the shares online without brokers?
if anyone of you know please helpme out.

thanks in advance..

Answer 1

I'm not sure if this will help, but it sure looks like your question, with an answer!

Answer 2

Yes and no.

Direct stock purchase, and DRIP accounts allow you buy the stock directly.

OR
you have to buy share from a brokage company. The market has "seats" that can buy and sell shares. You have to pay a fee to use this service.

If you buy one of those seats you don't need a broker your are the broker. By the way the last one that sold was well over $1,000,000 for the right.


Broker way:
If you have a broker assisted buy it cost extra, but when you have a online account you can just buy a share at market price and pay a small fee. ($7.00 to $40.00 or higher)

The thing in setting up an account is it going to be a retirement account or a normal account.

Retirement account:
Roth IRA (never pay taxes)
Have to be 55 or older to withdraw the money without fees.
Unless your buying a house or become disabled or die.


Just remember if you buy that you have enough money that the fees are a low percent ($8.00 fee / $300) = 2.6%. You will want your fees to be as low as possible for each buy and sell. It is at your loss if you pay a high percentage commission.

Firstrade.com
+ low fees, one of the lowest.
+ free mutual fund trading (6 month no sell period or high fee)
+ good software for research.
+ no cost to setup, free bank wire to broker account.
- Fee or removing funds. (most have it)

Sharebuilder.com
+ low fees may be high percentage
- only trade on tuesday
- high fee if you want to trade now!

Answer 3

Brokers are like any "middlemen". They add cost without necessarily adding value. One of the good things about Information technology is that it disintermediates - getting rid of the middlemen as much as possible. Share trading is undergoing the same revolution. You have a lot more choices now based on your knowledge and how you want to pay the fees for the additional value added by "brokers". It has not quite reached the stage where no "brokers" are needed at all i.e. the willing buyer and the willing seller just match up. Someone still needs to set up meeting places, time and title to goods to ensure clean transactions. That implies a cost no matter how small. You still have to pay. The diffeerence is micro payments. You pay less with volume transaction - the reasson for the mergers and acquisitons you now see with the world's bourses.

Answer 4

I assume you are writing from India. I believe you will have to have a brokerage account. I do not believe that you can buy shares without a broker. However, you can buy mutual funds without a broker. You can buy them directly from the mutual fund companies. For a starting out investor it is a much better method of investing because you buy diversity with just a small investment, so that one or even a few bad stocks will not greatly damage your investment returns.

Answer 5

You can contact companies that offer "direct stock purchase plans" for the companies that interest you. Ask for a prospectus and investor package and you can fill it out, send in money and VOILA,, you will own stock in THAT company.

Search online for "direct stock purchase plans" and it will give a list of many companies that off this with out needing a broker.