Gone are the days when buying physical stock was a complicated affair and the domain of only a few people who held connections in the financial markets. While in the past people had to hold face-to-face meetings to buy stocks and attain certificates, nowadays you can do everything you need without having to leave the comfort of your home. There are many ways of buying physical stock, depending on your tastes and needs.
Buying Stock in Person
Buying stocks in person is still possible, despite being one of the most expensive ways to conduct the transaction. Considered as a preferred option for large traders, this option involves visiting stockbrokers for a face-to-face meeting.
A visit to a stockbroker allows a trader to have a one-on-one talk on the kind of investments he wishes to make in the stock market. Upon agreeing and settling on a given stock, the broker would carry out the trade on behalf of the trader upon opening an account with the firm.
That said, this option comes with its fair share of challenges. The biggest drawback is that brokers may not agree to deal with clients who don’t have a significant amount of money to invest, simply as it will not be worth the time they invest in the transaction.
Buying Physical Stock over the Phone
It is possible to purchase physical stock by simply calling a brokerage firm. For this option to work, one must first have an account with a brokerage firm with a sufficient amount of capital. Upon making a call, you will be able to place an order on the stock you wish to buy as well as the total amount of shares.
Most stock brokerage firms allow execution-only transactions over the phones. However, others do converse with their clients while offering advice on the moves to make in the stock market. Buying physical stock over the phone tends to be less expensive compared to face-to-face orders.
Buying Shares Online
In the age of Internet dominance, buying physical shares has become simplified a great deal. All you need is a device connected to the Internet to be able to buy and sell physical stocks. Electronic stock trading has made stock ticket tapes and stock certificates obsolete.
To be able to buy stocks online, all you need is to open an online brokerage account, which is as easy as setting up a bank account. Firms like E-Trade and Ameritrade operate as electronic brokerages through which one can set up an online trading platform to buy physical stock.
Factors To Consider When Buying Physical Stocks
The costs involved in trading physical stocks are a key factor to consider when deciding which options to use to buy. Given that all the options include dealing with brokers, it is important to consider the commissions they charge. Dealing with a broker who charges the lowest fees would be the way to go as a way of optimizing returns.
In addition to costs, it is important to consider a broker that offers round-the-clock customer support. A broker’s offerings should include perks such as educational tools as well as investment guidance on some of the worthy investment options to look at.