Stock investment is usually accompanied with trading cost. These ways to buy stocks without paying brokerage fee are amazing.
Stock markets are a great way to generate wealth in the long run. It is possible only if you are smart enough to pick the right stocks at the right time.
No doubt you would like to keep profits as much as possible with you. You will never want to share certain percentage of profit with an outsider, particularly stock broker. But, it is not possible especially if you are investing through a traditional stock broker. It is due the associated brokerage fee or commission rate per transactions.
According to some estimates, the cost of brokerage typically ranges from 1% to 2% depending on the value of transaction amount.
This brokerage cost can impact heavily on the realized profits against the amount of risk taken. It will make it difficult for you to grow hard earned money quickly. Don’t worry! You can still reduce brokerage cost by several means.
You just need to adopt various stock investment options to buy stocks. These options are much cheaper than traditional options. Here are 10 stock investment options to purchase shares by paying no or minimum brokerage fee:
[You can also watch an exciting video on this post from GetUpWise channel on YouTube.
(1) Buy Stocks In Initial Public Offerings (IPOs) At Zero Brokerage Fee
It is one of the most common investment options or ways to buy stocks without paying brokerage fee. Initial Public Offer (IPO) is the first time launching of shares of a private company on a stock exchange. It is also referred as Public Offering or Going Public or Primary Offer or First Public Offer.
In this process, privately held company is transformed into a publicly traded company. When these types of shares are issued to the investors, there is no added broker’s commission.
However, investors must be able to get shares of hot & undervalued IPO issues from broker. It is due to the fact that stock allocation process in an IPO is not as easy as one might think. There are several factors that can determine the amount of shares allocation to investors.
Sometimes, investors can even remain empty handed due to higher demand of shares. Therefore, retail investors are advised to focus on retail focused IPOs.
Additionally, you should be smart enough to differentiate IPO of a hot company from a lackluster company. It is perhaps possible by carefully scrutinizing the growth prospects of a good company in the long term.
- Investing At Zero Brokerage Fee: Shutterstock