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Is it possible to trade stocks and other securities without a broker?
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Is it possible to trade stocks and other securities without a broker?
Hi there;
It is possible to buy or sell certain stocks directly to or from another investor without a broker. These stocks are generally referred to as over the counter (OTC) stocks. These stocks normally aren't listed on a stock exchange. In actual practice OTC products are usually traded using brokers or market makers, but some can be traded directly.
Some companies allow you to purchase shares directly via a direct stock püurchase plan or through a transfer agent (such as Compushare). Some companies also allow you to transfer ownership of shares by registering the transaction through their share register office.
However, the number of stocks which can be traded over the counter or without using the services of a stock broker are limited.
Stock brokers facilitate the trading process by connecting you with stock exchanges which - in turn - connect you with potential trade partners. They also handle the tasks involved in transferring share ownership. Unless you are an experienced investor, trading through a broker is recommended.
Best regards from Moneyguru
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