How to buy and sell a stock ? What is brokerage account?

  • 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
Robinhood $0
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

 

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