Stock brokers charge a fee for buying and selling stocks for their clients. The fee varies depending on the broker used and can quickly add up. It is possible, however, to purchase stocks without paying a fee to a broker by taking advantage of a number of different online stock purchase options. Stocks can be obtained without a trade fee with the help of online brokerages as well as automatic investment programs. It is also possible to purchase stocks directly from certain companies without paying a trading fee by enrolling in direct investment programs.
Take advantage of promotional offers from larger national brokers in order to buy stocks without paying fees. Several different national brokers offer a set number of free trades that can be used to purchase or sell stocks every month. In order to qualify for the free trades, an account must be created and funded with a minimum deposit amount. Shop around to find the national brokerage offering the most free trades.
Use an automatic investment service to purchase stocks without a trading fee. These services differ from traditional brokers in that the stocks are purchased at a set time every week and not based on the stock reaching a certain price. While there are no trading fees, there may be monthly or annual subscription fees. These services are best suited for casual investors.
Buy shares directly from the company to avoid trading fees. Many larger companies have direct investment programs through which shares are sold directly to investors. No fees are charged as there is no broker involved in the transaction. Be aware that some direct investment plans charge a transaction fee. Additionally, not all plans are open to the general public. Review the complete terms of the plans to ensure that there are no trading fees before enrolling.
Luther Blissett has written for a variety of online publications, blogs and newspapers on topics ranging from technology to politics. He runs his own small business. Blissett holds a B.A. in history and a J.D.