Most people who think of investing automatically think of finding a broker. This is sometimes a necessity, since it is impossible to execute stock trades unless you are a broker or an employee or member of an exchange floor. If you want to invest in traditional stocks, you will need a broker; you also need one if you are just starting and have no previous knowledge of investing and trading. However, there are some instances in which you can buy stocks without a stock broker.
To do this, you can open your own brokerage account. This can be done through a broker but then handled on your own, or you can become your own broker. If this sounds too complicated or time consuming, you may consider investing directly through a company's purchase plan. This is a popular stock sale option offered by many big companies. Thanks to the program, you can buy stock by contacting the company directly and offering an initial deposit or the option of a monthly bank debit. This is the easiest way to buy stocks without a stock broker, as you only need to decide which company you want and how much your monthly investment will be. After that, you can simply let the company do the work for you.
Many companies also offer something called Dividend Reinvestment Plan (DRIP) in which all dividends are reinvested in additional shares rather than being deposited into your bank account. If you want to buy stocks without a broker, enrolling on a DRIP program may be the easiest and quickest, as it can often be done online in a couple of minutes, even by inexperienced investors. Some companies require you to own a share in the company before you can enroll in their DRIP plan. This can be done easily if the company you are interested in is a big one, as most corporations have shares available for sale to the public.
