If any commodity that has done better in the market, it surely is stocks and securities. If you consider an investment in the long run, always go for stocks because they are the only ones which fare really well in the long run and surely much better than gold or real estate. The rule of stock market is very simple. If you have a certain amount of money which you don’t require in the present or immediate future, just invest it. Investing in real estate or gold will not fetch the returns that you can expect from the stock market. Usually the most prevalent way to sell and buy stocks is through brokers. But now the times have changed and you don’t really need a broker to help you with the stocks. Few of the good reasons why you don’t need a broker any more are listed under:
- Direct purchase of stocks – These days many companies give out the option to the investors to directly purchase their stocks. These have been in existence for a long time but people usually are completely reliant on the brokers and are even willing to pay the lowest brokerage to get the stocks directly from the company. But now it is possible to do so without the interference of the brokers as one can research about the company and then make a decision to buy their stocks.
- Saving money – One can actually save a lot of money if brokers are not involved. You would only invest your money where you are genuinely convinced to do. Generally the brokers get benefit from the companies for getting the investors to invest in their stocks. Plus they have relationships with other stock brokers to maintain their business inflow.
- Online Calculators – The brokers generally calculate and let the investors know about the kind of profit they will make if they invest in a certain stock. Well, these days a number of online calculators are present which can actually calculate and let you know the benefit and profit that you can expect from the particular stock. Thus, saving you another offer of lowest brokerage.
- Invest your extra money – Most of us invest in the stock market with whatever we have in our hand. And mostly it is done under the influence of people who claim that they know the market better. But the real picture is that you must always look forward to invest the extra money that you have. Or even better, invest something that you can afford to lose. This way you will be forced to invest less and gain better returns.
- Proper understanding – It is not that the brokers have the complete understanding of the market. You can also observe the market and understand it well before investing. Mostly people prefer stock market to invest their money for a long run and it definitely makes sense. It is also a good approach to keep all your eggs in different baskets so diversify as much as you can and that is only possible if you have a thorough understanding.