| Before you open an account with a stock broker it | | | | a scheduled electronic funding from that account. For |
| would be better to have some idea of investment in | | | | that you will have to decide how you would like to |
| stock trading. Several stock trading sites have | | | | schedule your funding. Would it be one time, daily, |
| education sections where they provide detailed | | | | weekly or monthly funding? If you have multiple bank |
| information about important issues in stock trading. | | | | accounts, you may have to choose which account to |
| The topics may be discussed under several heads | | | | fund your stock trade from. You may also have to |
| and sub heads. | | | | select a starting date for your fund transfer. |
| In 'what is a stock' category, you may find the | | | | You may also fund your account with a wire transfer |
| definition of a stock, why you should buy a stock, | | | | or by simply mailing your check. Wire transfers are |
| risks in stock investments, types of investments and | | | | immediate. The money is credited into your account |
| finally what is a ticker symbol. | | | | on the next business day. |
| In 'How stocks trade' category, you may find topics | | | | Wire transfer, however, is a bit costly. It may take |
| such as what is stock market, primary and secondary | | | | you around $25 to wire a fund transfer. Mailing a |
| markets, NYSE, NASDAQ, AMEX and so on. You may | | | | check requires only fixing postal stamps. It takes |
| also learn about OTCBB and penny stocks. | | | | nearly 10 business days for processing the check |
| You may get an idea about stock charts, news | | | | after it is received by your broker. |
| flashes, price quotes and how they help in stock | | | | Your stock broker may ask you to mail or fax a |
| research. In trading mechanics section you can learn | | | | photocopy of your photo ID and signature along with |
| about order types, order expiration and trading | | | | a valid driver's license before funds are transferred. |
| cycles. | | | | This kind of documentation is not necessary for only |
| After you get some idea of stock trading basics, you | | | | opening the account but it is also required to ensure |
| are taught about how to open an account. You learn | | | | the safety of funds transfer from your account. |
| about the types of account, how to fund your | | | | Scheduled Investment Plan |
| account, how to design your investment plan, what | | | | Scheduled investment plans are a great way of |
| are real time trades, how you track your | | | | building wealth in stock trading. The first step is to |
| investments and so on. | | | | fund your account with your stock broker before |
| Open your account | | | | your investment plan starts. |
| The account opening process is usually very simple | | | | Selecting a scheduled investment plan is easy. There |
| and short. It hardly takes five minutes to open an | | | | are several scheduled investment plans. You have to |
| account. As you open an account, you may have | | | | choose one according to your budget and personal |
| several doubts and questions. The account opening | | | | needs. You can select what amount you want to |
| page contains help sections which provides answers | | | | invest and break it up between different |
| to all your possible questions. | | | | investments. Investments are broken up either by |
| Several stock brokers put up demonstration videos | | | | the dollar amount or the percentage of the total |
| which explain the stock account opening process | | | | investment amount. |
| step by step in simple and easy-to-understand | | | | Scheduled investment plan can be set up to start on |
| language. | | | | any day of the week. You can modify your plan, |
| Fund your account | | | | remove or add any scheduled investment plan any |
| Opening an account by itself cannot work unless you | | | | time. It must be noted that your funds for scheduled |
| put some money in it for trading or investing in | | | | investment plan must reach your account by 1.00 pm |
| stocks. The account funding process is quite simple | | | | on the trading day prior to the scheduled investment |
| as well. Funds can be transferred electronically. For | | | | day. |
| that you must open a bank account and know your | | | | Your scheduled investment plan will not be executed |
| account number and routing number. Just look at | | | | if your funds are not made available by this time. |
| your check from your check book. It contains your | | | | Contact your stock broker for the convenient |
| bank and routing account number for your bank | | | | funding options to meet the cut off time. You may |
| account. Electronic funding does not cost you | | | | use one-time and recurring ACH electronic transfers, |
| anything. | | | | check deposits or wire transfers. |
| Once you have set up a bank account, you can start | | | | |