A direct stock purchase, or buying stocks directly from a company, is perhaps the easiest and simplest way to get stocks from your chosen company. This method eliminates the need for an online account with a third party company and a human stock broker. By simply contacting your company of choice or visiting their web site, you will get first hand information on whether or not they offer a direct stock purchase program, and if they do, how it works. Normally, direct stock purchasing fees are less than the fees you pay if you go through a third party human stock broker or through an online stock trading website.

However, there is a downside to purchasing stock directly. If you are planning to invest in different kinds of stocks, you would need a direct purchase account with each and every company you’re interested in, instead of just one account that is required when you go through a stock broker or an online account.

On the other hand, using online stock brokers has been one of the most popular investment trends in stock trading over the years. These websites allow you to buy limitless stock on lower commissions and costs compared with their human counterparts. Moreover, they also help their customers keep abreast with the latest stock trends and prices by providing them information and analyses. You can say that it is the most ideal setup for those who do not wish to get into the market literally. One pitfall to online investing though is that it works best for people who are in the know when it comes to the nuts and bolts of trading. It is common knowledge that a lot of people have failed at their attempts to successfully engage in stock trading due to their lack of knowledge on investment basics, or by picking stock tips that are inaccurate.

Ultimately, it is through a human stock broker that a beginner can learn the ropes of investing in stocks. It is also considered the smartest move for a beginner who wants to know how to buy stocks. Although the commissions can be high and success is not guaranteed, it allows you to ask your broker questions regarding the stock you want to buy. By going through a broker, you eventually become more knowledgeable when it comes to stock trading, a plus you cannot get from online stock trading. Using human brokers prepares you for the big time because they’ll train you how to buy stocks intelligently.