- If you want to invest your money in stock market, you need to open a brokerage account with a brokerage firm. Therefore, buying a stock and selling a stock will happen through brokerage account.
- Brokerage account is a setup between investor and licensed brokerage firm to buy a stock and sell a stock in equity market. Opening a brokerage account as simple as opening a bank account (It is just an online application)
- There are many brokerage firms in USA which offer brokerage account. For example: Robinhood, Fidelity, Scotttrade, Interactive Brokers, Trade King and Speed Trader.
- However, brokerage firms charge some commission fee for buying a stock and selling stock.
- StockFires will suggest you to go for Robinhood brokerage account if you are a beginner because it does not charge anything for selling a stock and buying a stock (Absolutely zero commission).
- It is just a mobile app that you need to download from Google store and Apple store. (Remember Robinhood is not web user interface).
Brokerage Firms and Commission Fees:
|Brokerage Firm||Commission Fee|
|Fidelity||$7.95 per trade (Buying + Selling (7.95+7.95)=$15.95)|
|Interactive Brokers||It depends on quantity of buying and selling shares|
|Scotttrade||$7 per trade|
|Trade King||$4.95 per trade|
|Speed Trader||$5.95 per trade|
Trade * – Buying a stock OR Selling a stock