How do I buy stocks in America?

How do I buy stocks in America? The US market is the largest stock market in the world in terms of liquidity, size, sectors, and number of investors. You don't need to be an American citizen to invest in it.

Therefore, search engines have increased around the topic "How to buy stocks in America," but you will first need to obtain some information about this field from those with extensive experience.

We also need to know the investment steps, which include choosing a broker, determining the company, the number of shares, and more. Below, we will discuss this topic in detail.

How do I buy stocks in America?

You can buy US stocks from the comfort of your own home without any effort. You can directly acquire stocks such as those from Apple, Amazon, Alphabet, and Microsoft by following these steps:

1- Choosing a broker

Choosing an online stock broker is one of the easiest ways to buy stocks on the US stock exchange. Don't worry about opening an account with an online broker; it's as easy as opening a bank account.

All you need to do is fill out the account opening form, then verify the account by proving your identity and address (you must send a copy of your ID card and an invoice showing your name and address).

Then, deposit any amount you like to fund your account using the payment method you see fit. After completing this step, you can start investing in US stocks through the broker.

2- Search for the stocks you want to buy:

After completing the previous step, you can now choose the stocks you wish to invest in. The ideal choice is to choose companies that you have become familiar with through your experiences as a consumer. There are many ways to choose stocks, depending on:

Fundamental Analysis: If you choose this method, you will be self-sufficient in your investment process. You will need to conduct some research on companies, starting with their annual reports and identifying the management's annual letter to shareholders. After that, you can select stocks.
Recommendations: It's best to get advice on investing in the US stock market from trusted individuals with extensive experience in this field. You can also use the internet, which provides a wealth of information on how to buy and invest.

3- Determine the number of shares you wish to purchase.

If you are a beginner investor, it is recommended to allocate a small amount for each stock (maximum five stocks), as this helps you train yourself to invest in individual stocks and gain experience and knowledge. Over time, you can increase the amount of stock purchases.

Brokers also offer fractional shares, meaning you don't have to buy the entire share. This option is particularly convenient for investors who want to buy high-priced stocks like Apple and Amazon.

4- Choose the market order that suits you.

You can indicate that you will buy or sell shares at the best price using market orders, and your order will be executed immediately. Some may be surprised that the price paid when buying or receiving when selling is different from the price at which the trade was executed.

This is due to the constant fluctuations in supply and demand prices around the clock. Therefore, market demand is used effectively when buying large American stocks, which have a fixed price, unlike small companies, which are characterized by their volatile prices. Some may find it difficult to understand some of the terms and words found on the buy and sell page, such as:

Ask: The price that sellers accept when offering a stock for sale.
BID: The price a buyer is willing to pay for a stock.
Spread: The difference between the highest bid price and the lowest ask price.
Market order: An order to buy or sell a stock at the best price and in the fastest time.

Make adjustments to your portfolio

After completing all these steps and over time, you will have learned how to buy stocks on the US stock exchange, and you can explore other areas of investment.

Information about the American Stock Exchange

Some people need to know some information about the US stock market before starting to invest in it:

The term "American Stock Exchange" is an inaccurate and inappropriate description of the stock exchange, as it is not a single stock exchange but rather several stock exchanges in different states, such as the New York Stock Exchange, the Chicago Stock Exchange, the Philadelphia Stock Exchange, and others.
There are some stock exchanges in the US market that have a specific location and location, such as New York, Chicago, and Philadelphia, where trading is traditionally done manually. There are also a large number of publicly traded companies, which are called listed companies.
Trading can be done through electronic markets such as the NASDAQ, using a computer with an advanced electronic system. These companies are called over-the-counter (OTC) companies.

To be able to distinguish between an OTC company that is traded on the NASDAQ stock exchange and a Listed company that is traded on a traditional stock exchange, you should read the following:

US markets have a letter code. If the code is 3 letters or less, it means that trading is taking place in the listed markets.
If the code is 4 or more letters, it indicates that trading is done electronically (OTC).

Best Bank for US Stock Trading

Many people prefer trading on the US stock exchange, due to the market's liquidity and activity, in addition to the fact that the US stock exchange contains a large group of shares in large and well-known industrial and technology companies, such as:

Facebook and Amazon, but some people face the problem of choosing the best bank for trading American stocks. Therefore, we will explain the best banks, which are:

1. Bank of America

This bank is the second largest commercial bank in the United States of America, and it is also the largest bank providing financial services in the United States of America. The bank provides trading services through the brokerage company Merrill Edge. Among the advantages of this company are:

They offer about $250,000 in insurance per account.
There is no minimum requirement to open an account, making it easier for those who want to make their own investment decisions to trade stocks.
The bank does not charge any fees for stock trading.
The bank offers a welcome bonus of $600 to its new customers.
The bank offers various investment tools such as stock trading, options contracts, and investment funds.
The most important feature is the link between bank and investment accounts, as it is possible to switch between the two types of accounts easily and conveniently.
You can access your Merrill Edge account online, using applications provided by Bank of America.

2. Chase Bank

Founded in 1799 and located in Chicago, Chase has assets of $2 trillion or more and operates in more than 100 countries. The bank provides banking services insured by the Federal Reserve.

3. Ally Bank

This bank is ranked among the best banks for trading US stocks. It has gained widespread popularity among investors despite its relatively recent establishment, having been founded in 2009. Its headquarters are located in Sandy, USA, and the bank is registered with the Federal Insurance Corporation.

How to buy Apple shares?

There are some simple steps to follow to buy Apple shares:

Step 1: Open a trading account at AvaTrade.
Step 2: Download the MetaTrader 4 platform.
Third: Choose Apple and start your trading.

Buying stocks through the bank

Banks offer several methods through which you can purchase stocks, as this affects the overall interest of the stock market:

Banks offer some investment certificates available to all their clients.
Banks also provide securities used in private projects, creating websites, and purchasing currencies.

Finally, we have provided a comprehensive article titled "How to Buy Stocks in America." This investment doesn't require travel and movement from one place to another, but can be done from your location and in the shortest possible time.