can you buy stocks yourself? A practical guide

This article answers “can you buy stocks yourself?” by explaining how retail investors can buy equities directly, the methods and platforms available, step‑by‑step procedures, costs, risks, tax rul...

2026-01-06 10:44:00

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Can You Buy Stocks Yourself? A practical guide

If your question is "can you buy stocks yourself?" the short answer is yes — many individual investors now buy stocks directly without a full‑service broker. This guide explains what it means to buy stocks yourself, the main ways to do it (online brokerages, direct plans, robo‑advisors, retirement accounts), the step‑by‑step process, costs and risks, tax and regulatory issues, and practical checklists to get started safely and confidently.

Definition and scope

"Can you buy stocks yourself" refers to executing stock purchases as a retail investor instead of delegating buying decisions and trade execution to a full‑service investment broker or wealth manager.

When you buy stocks yourself, you typically use an online brokerage account, a direct stock purchase plan (DSPP), a mobile trading app, a robo‑advisor that lets you control holdings, or a retirement account where you select investments. The scope covers publicly traded U.S. equities, international equities (often via ADRs), exchange‑traded funds (ETFs), and related instruments available to individual investors.

Buying stocks yourself does not usually mean physically taking possession of share certificates; most shares are held electronically in brokerage custody. The phrase also excludes hiring a full‑service advisor to pick and trade positions for you on a discretionary basis.

Primary methods to buy stocks yourself

Online brokerages

Online brokerages are the most common tool for individuals who ask "can you buy stocks yourself?" They allow you to open an account, fund it, place orders, and manage holdings through web platforms and mobile apps.

Account opening: You create an account (individual, joint, custodial, or retirement), complete identity verification (KYC), and link a funding method.
Common features: order entry (market, limit, stop), research tools, streaming quotes, watchlists, mobile apps, tax documents, and trade confirmations.
Fees: Many U.S. brokerages offer zero‑commission trading on U.S. stocks and ETFs, though other fees (options contract fees, margin interest, regulatory assessments) may apply.
Examples of major providers widely referenced in investor education: E*TRADE, Fidelity, Vanguard, Robinhood, SoFi. For traders interested in bridging traditional markets and Web3 primitives, Bitget provides exchange and custody products and Bitget Wallet for managing blockchain assets.

Online brokerages typically provide fast execution, fractional shares at some firms, and instant access to market data. When evaluating a brokerage, consider regulation, security, product availability, costs, and customer support.

Direct stock purchase plans (DSPPs) and dividend reinvestment plans (DRIPs)

Direct stock purchase plans let investors buy shares directly from a company or its transfer agent without using a brokerage. DRIPs automatically reinvest dividend payments to buy additional shares, often without commissions and sometimes at a discount.

Use cases: long‑term investors, employees or investors who prefer dollar‑cost averaging, and those seeking low‑cost accumulation.
Limitations: not all companies offer DSPPs; some have minimum initial investments, and fractionalization or liquidity can be limited compared with brokerage trading.

Strategies that combine DSPPs/DRIPs with periodic purchases answer the "can you buy stocks yourself" question for investors focused on long‑term compounding rather than short‑term trading.

Robo‑advisors and automated platforms

Robo‑advisors build and manage diversified portfolios using algorithms. They can buy individual ETFs or fractionalized baskets on your behalf, rebalance automatically, and offer tax‑loss harvesting in some cases.

When is this still “buying yourself”? If you choose the allocation, risk profile, and retain control of the account, using a robo‑advisor is a self‑directed approach even though the execution is automated.
When it differs: fully discretionary managed accounts, where a firm actively makes investment choices without ongoing input from you, are closer to outsourcing.

Robo‑advisors suit investors who want a hands‑off implementation of a DIY strategy while retaining ownership of the decision framework.

Employer‑sponsored and retirement accounts (401(k), IRA)

You can buy equities within tax‑advantaged retirement accounts. Employer plans (401(k), 403(b)) often provide a curated menu of funds and sometimes offer a self‑directed brokerage window.

IRAs (traditional, Roth, SEP) let you hold a wider mix of stocks, ETFs, and mutual funds. Buying inside these accounts changes tax treatment: capital gains and dividends are tax‑deferred (traditional IRA) or potentially tax‑free (Roth IRA), subject to rules and contribution limits.

A practical retirement‑planning note: As of January 10, 2024, according to MarketWatch, retirement saving and joint household planning are often best treated as a combined effort across accounts. This context matters when deciding which account to use for buying stocks yourself, especially for tax and distribution planning.

Other channels (banks, broker‑assisted trades)

Banks and traditional financial firms also offer brokerage services, including telephone‑assisted orders and relationship managers. These services can provide extra guidance but usually come with higher fees and, sometimes, less transparent pricing than online brokerages.

If you prefer occasional human assistance while retaining primary control, broker‑assisted trades are a hybrid option answering "can you buy stocks yourself?" with a hand‑on safety net.

Step‑by‑step process for buying stocks yourself

Choosing a platform

When deciding where to buy stocks yourself, evaluate:

Regulation and safety: choose a broker regulated by local authorities (SEC and FINRA in the U.S.) and check protections such as SIPC coverage for brokerage custody.
Fees and pricing: commissions, options fees, margin rates, and other costs. Watch for implicit costs like bid‑ask spreads and payment for order flow.
Product availability: U.S and international equities, ETFs, options, fractional shares, and whether the broker supports crypto or tokenized securities you may want later.
Research and tools: educational content, screeners, analyst reports, charts, and order types.
Security and user experience: two‑factor authentication (2FA), account recovery options, mobile app quality, and customer service.

Bitget and many traditional brokerages offer a mix of these features; choose one that matches your priorities (cost, tools, access to international markets, or crypto integrations).

Account opening and identity verification

Opening an account normally involves:

Completing an online application with name, address, birthdate, and tax ID (SSN or Tax ID in the U.S.).
Verifying identity with a government ID and sometimes a selfie or proof of address (KYC process).
Choosing account type: individual, joint, custodial, traditional IRA, Roth IRA, SEP IRA, or brokerage account for taxable trading.
Typical timelines: many accounts are approved within 24–72 hours; some verifications may take longer if manual review is required.

If you are a non‑U.S. resident, brokers may require additional documentation and may limit access to certain products.

Funding your account and order settlement

Funding methods commonly include ACH/bank transfer, wire, or check. Some brokers offer instant purchasing power for small amounts while a transfer clears.

Settlement cycles: most stock trades in the U.S. settle on a T+2 basis (trade date plus two business days). That affects when transferred proceeds become available for withdrawal, but you can often trade using unsettled funds within margin or instant‑buy features.
Availability: some brokers provide immediate buying power for small purchases; others require funds to fully clear.

Placing orders

Understand basic order mechanics to buy stocks yourself effectively:

Market order: executes at the current market price; fastest but price may vary.
Limit order: executes only at or better than a specified price; useful for price control.
Stop and stop‑limit orders: used to limit losses or enter positions at breakout levels.
Time in force: day, good‑til‑canceled (GTC), or immediate/kill options determine how long an order remains active.
Partial fills and fractional shares: some orders can be partially filled; fractional‑share programs let you buy portions of high‑priced stocks using dollar amounts.

Practice with a small position to learn how order execution and fills work before committing large amounts.

Post‑trade: custody, statements and recordkeeping

After a trade, the broker will hold shares on your behalf, usually in “street name” (brokerage nominee) rather than issuing paper certificates.

Statements and confirmations: brokers provide trade confirmations and periodic account statements summarizing holdings and performance.
Tax documents: brokers issue forms such as 1099‑B for taxable accounts, detailing proceeds, cost basis, and realized gains/losses.
Transfers: if you decide to move accounts, the Automated Customer Account Transfer Service (ACATS) process enables transfers between U.S. brokers; timing varies but commonly takes a few business days.

Keep records of purchase dates and cost basis for accurate tax reporting and long‑term performance tracking.

Costs, fees and execution quality

When evaluating "can you buy stocks yourself?" remember that costs include both explicit and implicit charges.

Explicit fees: commissions (less common for U.S. stocks), options contract fees, wire fees, account maintenance fees, and margin interest.
Implicit costs: bid‑ask spread (the difference between buyers’ and sellers’ best prices), market impact for large orders, and execution quality differences.
Payment for order flow (PFOF): some brokers route orders to market makers and receive payment; this can subsidize zero commissions but raises questions about best execution.
Regulatory assessments: small fees (SEC and FINRA transaction fees) may appear on trade confirmations.

Execution quality and routing affect the actual price you receive. Compare brokers using published execution reports and consider fills, speed, and price improvement statistics when choosing a platform.

Risks and practical considerations

Buying stocks yourself exposes you to several risk categories:

Market risk and volatility: prices can fall quickly; diversification and time horizon matter.
Liquidity risk: some stocks have low daily volume; large orders can suffer wide spreads and partial fills.
Platform outages and operational risk: trading platforms can experience downtime during volatile markets, which may prevent order placement or execution.
Margin and leverage: borrowing to trade amplifies gains and losses and can trigger margin calls.
Behavioral risks: overtrading, emotional decisions, and chasing performance often harm long‑term returns.
Fraud and scams: verify legitimacy of platforms and offers; confirm regulatory registration and use official company channels.

Mitigation strategies include diversification, position‑sizing rules, using limit orders, maintaining adequate cash reserves, and choosing regulated, well‑capitalized brokers.

Tax and regulatory considerations

Tax rules and protections differ depending on account type and investor residency.

Capital gains: short‑term (held one year or less) are generally taxed at ordinary income rates; long‑term gains often enjoy lower rates.
Dividend taxation: qualified dividends can be taxed at preferential rates; non‑qualified dividends are taxed at ordinary rates.
Wash‑sale rule: disallows claiming a loss for tax purposes if you repurchase the same or substantially identical security within 30 days.
Tax reporting: brokers issue forms (e.g., Form 1099‑B in the U.S.) summarizing sales proceeds and cost basis for taxable accounts.

Protections and regulators:

SEC and FINRA oversee broker‑dealer conduct in the U.S.; use tools like FINRA BrokerCheck to verify broker registration.
SIPC coverage: brokerage accounts in the U.S. may be protected by SIPC up to limits if a broker fails, covering missing securities but not protecting against market losses or fraud. SIPC does not insure against losses due to investment performance or declines in value.

Always consult qualified tax professionals for personalized tax questions — this guide is educational, not tax advice.

Advantages and disadvantages of buying stocks yourself

Advantages:

Cost savings: lower fees than full‑service brokers.
Control: you pick securities, timing, and strategy.
Transparency: direct access to confirmations, price history, and research tools.
Learning: hands‑on experience improves financial literacy.

Disadvantages:

Time and effort: requires research, monitoring, and recordkeeping.
No personalized financial planning: you may lack tailored tax and estate planning provided by advisors.
Potential for mistakes: inadequate diversification or misuse of leverage can be costly.

Deciding whether to answer "can you buy stocks yourself?" affirmatively depends on your goals, time, and comfort with markets.

Special topics and related instruments

Fractional shares and dollar‑based investing

Fractional shares let investors buy a portion of a share using dollar amounts. This enables diversification with small capital and facilitates dollar‑cost averaging. Not all brokers support fractional shares across all securities, so check availability.

International trading, ADRs and currency issues

Access to foreign equities can be direct (local exchanges), via American Depositary Receipts (ADRs), or through international brokerages. Consider timezone differences, currency conversion fees, taxation in foreign jurisdictions, and differing disclosure standards when buying international stocks yourself.

Advanced trading: options, short selling, margin

Advanced instruments are available to many retail investors but carry heightened risks.

Options: can be used for hedging or speculation; traders must understand contracts, Greeks, assignment risk, and potential for total loss.
Short selling: involves borrowing shares to sell and buying back later; risk is theoretically unlimited if the stock rises.
Margin: borrowing to invest amplifies returns and losses and may trigger margin calls.

Brokers require specific approvals and education levels for these permissions.

IPO participation and direct listings

Retail access to IPOs is often limited. Some brokerages offer special IPO allocation programs, but most new issues are distributed primarily to institutional investors. Direct listings let existing shareholders trade without underwriting; retail participation depends on broker routing and availability.

How to choose whether to DIY or use professional help

Consider DIY if:

You want control and lower costs.
You have a simple portfolio goal (e.g., build a low‑cost ETF core).
You want to learn and have time to manage investments.

Consider professional help if:

Your finances are complex (taxable events, trusts, business ownership).
You need comprehensive planning (tax, estate, retirement, insurance).
You struggle with behavioral investing and want fiduciary guidance.

Hybrid approaches: keep a core DIY portfolio and consult an advisor for planning or periodic portfolio reviews.

Common frequently asked questions (FAQ)

Q: Do I need a broker?

A: Yes — to execute trades on public exchanges you use a broker or platform (online broker, bank, or DSPP). The broker acts as your access point to markets.

Q: Can non‑U.S. residents buy U.S. stocks?

A: Many brokers accept non‑U.S. clients, but requirements and available products vary. Expect additional documentation and potential withholding taxes on dividends.

Q: Are minimum balances required?

A: Some brokers have minimums for certain account types or features, but many modern brokers offer zero minimums for basic accounts.

Q: How long until a trade settles?

A: Most U.S. equity trades settle on T+2 (trade date plus two business days). Settlement affects withdrawal timing, not ownership reporting on your confirmation.

Q: How do I move accounts between brokers?

A: Use the ACATS transfer process in the U.S. or equivalent international transfer systems. Transfers typically take several business days and may incur fees for outgoing transfers.

Practical checklist for first‑time DIY stock buyers

Research platforms and verify regulation and protections (SEC/FINRA, SIPC).
Choose the account type that matches your goals (taxable, IRA, custodial).
Open an account and complete KYC verification.
Fund the account using a linked bank method and confirm settlement expectations.
Decide position sizing and risk limits before placing orders.
Start with small trades to learn order types and execution.
Keep records of purchases, cost basis, and confirmations for taxes.
Monitor platform security settings (enable 2FA) and review periodic statements.

Practical safety tips and how Bitget fits in

Use a regulated broker with clear disclosures and custody arrangements.
Enable strong account security: unique passwords, two‑factor authentication, and email/SMS alerts.
For those who bridge traditional investing and tokenized or blockchain‑native assets, consider Bitget and Bitget Wallet for secure custody and integrated Web3 access. Bitget emphasizes account security and user controls suitable for modern investors exploring digital‑asset interoperability while still maintaining traditional brokerage accounts for equities.

Remember: security of your funds depends on platform practices and your personal cybersecurity hygiene.

Final guidance: is "can you buy stocks yourself?" right for you?

Buying stocks yourself is practical and accessible today for most investors. It offers control, lower costs, and learning opportunities. However, it requires discipline, a basic understanding of order types and tax implications, and attention to platform selection and security.

If you want to start: choose a regulated platform that fits your needs, fund an account, and place a small trade to learn the mechanics. If your financial life is complex or you need behavioral support, consider blended approaches — DIY execution combined with periodic advisory guidance.

Further explore Bitget’s educational tools and Bitget Wallet if you plan to extend investing into tokenized assets, and always retain proper records for tax reporting.

Frequently asked quick answers (short form)

"Do I need a broker?" — Yes, to access public exchanges you use a broker or approved platform.
"Can non‑US residents buy US stocks?" — Often yes, but check documentation and tax rules with the broker.
"Are minimum balances required?" — Many brokers have no minimums; verify per platform.
"How long until trade settles?" — Typically T+2 in U.S. equities.
"How to move accounts between brokers?" — Use ACATS for U.S. broker transfers; expect several business days.

Explore more practical guides and platform features to start buying stocks yourself confidently. To learn about secure custody and Web3 wallet integration that complements your stock investing, check Bitget and Bitget Wallet resources.

The content above has been sourced from the internet and generated using AI. For high-quality content, please visit Bitget Academy.