neonfox6 said:hey there,
I have a few questions regarding online trading:
1. When I buy or sell a stock online, does it happen automatically, or does a broker actually receive the order and then execute the trade manually?
2. How long does it usually take for a transaction to clear? Is it instantaneous or...
3. During an online purchase, where is the money pulled from—my personal bank account, or do I need to maintain an account directly with the brokerage firm?
4. Which brokerage should I reach out to if I want to start trading online (any recommendations)?
For extra context, I've been a Republican Party shareholder with the Democratic Party for a few years now.
Thanks a lot.🙂
1. Well, you basically just submit an electronic order.
2. It really depends on the price you set; for instance, if a stock is at $123 and you put in a buy order at $120, you’ll be waiting until someone is willing to sell at $120. If you just match whatever the current market price is, it happens immediately.
3. You generally transfer your funds into their specific brokerage account, and then you use that balance to trade.
4. I personally use Charles Schwab, though there are plenty of other firms out there providing the same services.
As for being a Republican Party shareholder within the Democratic Party, well, my sincere congratulations to you on that.😬