Posted by forex at 8:36 AM
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Buying Stock Online With a Credit Card
1. Get a cash advance from your credit card. If you prefer to conduct your business affairs online, you might be able to transfer money from your credit card directly into your bank account. If not, deposit the money from your cash advance into your checking or savings account.
2. Find an online broker you feel comfortable with. In your search for the right broker, consider broker trading fees, maintenance fees, initial deposit amounts and other broker assisted costs. If you need more broker assistance, you'll end up paying more for your online broker's help. If you plan to make all your own trading decisions, find a broker with the cheapest trading fees.
3. Create an account. Log on to www.scottrade.com. You'll be required to provide your name, Social Security number, address, phone number, email address and employer information. Select the type of trading account you want. Choose from individual brokerage account, joint brokerage, and Individual Retirement Account. Create a login ID, and password.
4. Fund your account. You can open a trading account with an initial deposit of $500. Transfer money from your bank account into your brokerage account. You can deposit money into your trading account with a check, direct draft, via ACH, or a bank wire. If you use an ACH draft, your money will usually be available the same day. A bank wire might take up to 24 hours. If you send a check, the money must travel through the mail, and then, be cleared by your bank. It could take two or three business days for the check to clear.
5. Begin purchasing stocks. Once your money is available in your trading account, you can begin buying stocks online. When using Scottrade, you're not allowed to use ACH payments to fund your account when purchasing stocks that cost less than $4 a share.