If you’re looking to buy stocks online – your first task is choosing a suitable broker. The best stock brokers in this space offer low fees, plenty of supported markets, and the ability to buy fractional shares.

In this comparison guide on where to buy stocks in 2022 – we review the best brokers in the market right now.

Where to Buy Stocks – Top 10 Stock Brokers 

For a quick overview of where to buy stocks from the comfort of home – check out the 10 top brokers outlined below:

  1. eToro – Overall Best Place to Buy Stocks in 2022
  2. Webull – Popular Broker to Buy Stocks via Fractional Shares
  3. Interactive Brokers – Trusted Broker Offering Access to Thousands of Stocks
  4. Schwab – $0 Commissions on US-Listed Stocks, ETFs, and Options
  5. Fidelity – Buy US Stocks From $1 Per Trade
  6. SoFi – User-Friendly Broker Offering US Stocks at 0% Commission
  7. Ally Invest – Great Mobile App for Buying Stocks
  8. E*TRADE – Good Broker for Long-Term Stock Investments
  9. TD Ameritrade -Top-Rated Stock Broker for Seasoned Traders
  10. Robinhood – Best Online Stock Broker for Beginners

To assess where to buy stocks for your skillset and financial goals – we review the above brokers further down.

How to Buy Stocks – Select a Stock Broker

When deciding on where to buy stocks in the US – many online platforms now offer super-low fees and even fractional shares – meaning that you only need to invest a few dollars.

With that said, you also need to consider other key metrics – such as support for international shares and whether or not you will have access to top-rated customer service. 

Taking these crucial factors into account – below we review the 10 best online stock brokers for 2022.

1. eToro – Overall Best Stock Broker for 2022

We reviewed more than 50+ online brokers and found that overall – eToro is the best place to buy stocks in the US. This SEC-regulated and FINRA-registered broker gives you access to thousands of the best new stocks from a wide variety of exchanges and markets.

In addition to stocks listed on the NYSE and NASDAQ, eToro also allows you to invest in companies based in the UK, Europe, Middle East, Asia, and more. Best of all, irrespective of whether you are buying stocks from the US or overseas – eToro will not charge you a single cent in trading commission. With such a vast portfolio of stocks to browse through and choose from you can invest in: the best blockchain stocks, the best cannabis stocks, the best dividend stocks, and the best metaverse stocks with the click of a button.

Moreover, not only are spreads at eToro competitive, but the brokerage site supports fractional share investments from just $10 per trade. This means that you can invest in companies like AT&T stocks, Rivian, Tesla and Google without needing to risk thousands of dollars. This also makes the process of diversifying affordable for those on a budget. But don’t just take our word for it, read our guides on how to buy oil stocks and how to buy dividend stocks to see just how you can add oil stocks and dividend stocks to your investment portfolio in a matter of minutes. 

etoro review stock trading

Another popular feature offered by eToro is its copy trading tool. This enables you to select a seasoned stock trader that you like the look of and then mirror their positions. For instance, if you invest $1,000 and your chosen trader risks 10% of their capital on IBM stocks, $100 worth of shares in this company will be added to your own portfolio.  

You can also invest in smart portfolios at eToro – which are professionally managed. These allow you to invest in specific sectors and markets passively – such as renewable energy or tech. In terms of the fundamentals, eToro accounts take less than five minutes to open and US clients only need to deposit $10 to get started. This means that you can add the best penny stocks and the best cheap stocks to your portfolio with a minimum investment of $10. For example, traders could buy Nikola stock via fractional share trading on eToro within a matter of minutes.

And, when funding your eToro account in US dollars, no transaction fees are charged. This is the case across all supported deposit methods – eToro supports buying stocks with a credit card, debit card, e-wallet, ACH, and domestic bank wire. Finally, consider downloading the eToro trading app for your iOS or Android device should you wish to buy stocks on the move.

Minimum Deposit $10
Fractional Shares? Yes – $10 minimum
Pricing System 0% commission on all stocks
Cost of Buying Amazon Stock Spread only

Pros

Cons

  • Not suitable for high-frequency trading

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

2. Webull – Popular Broker to Buy Stocks via Fractional Shares

webull logoWebull is another top-rated broker that you might consider when deciding on where to buy stocks in the US. This platform is used by both beginners and experienced pros alike – not least because it offers investment tools to cater to all skillsets.

For instance, newbies will like the simple client interface that Webull offers, alongside handy educational guides and trading tutorials. Seasoned pros, on the other hand, will appreciate the technical indicators and advanced charting features on offer.   

webull platform screenshot

Irrespective of your experience level, Webull allows you to buy US-listed stocks at 0% commission. There are no minimum deposit requirements to meet when opening a Webull account and all supported shares can be purchased from just $5. We also like Webull for its 0% commission stock options, cryptocurrencies, and ETFs. 

Webull is also a good option if you are thinking about buying stocks as part of a long-term retirement plan, not least because the broker offers a variety of low-cost IRAs. If you’re looking to trade on your smartphone, Webull also offers a mobile app that has been fully optimized for iOS and Android devices.     

Still wondering if eToro or Webull is the best option? Read our full eToro vs Webull review for more details. 

Minimum Deposit $0
Fractional Shares? Yes – $5 minimum
Pricing System 0% commission on US-listed stocks
Cost of Buying Amazon Stock Spread only

Pros

  • No minimum deposit
  • Minimum stock investment is just $5

Cons

  • International stocks offered via ADRs only
  • No copy trading tools
  • Does not support debit/credit cards or e-wallets

Your capital is at risk.

3. Interactive Brokers – Trusted Broker Offering Access to Thousands of Stocks

interactive brokers review

Founded in 1978, Interactive Brokers is one of the largest trading platforms globally in terms of client accounts and trading volume. The platform gives you access to thousands of stocks both in the US and overseas. 

When buying stocks listed in the US, you won’t be charged any trading commission. Foreign shares, however, will be charged at a premium and the specific fee will depend on the exchange. In addition to stocks, Interactive Brokers is also popular with investors that seek access to options, futures, currencies, bonds, mutual funds, and more.

interactive brokers review

For those with experience in the stock trading space, Interactive Brokers offers a highly advanced trading platform that comes packed with sophisticated features. This includes customizable workstations, technical indicators, and tools for high-frequency trading. Less experienced traders, however, will find the standard client portal more than sufficient.  

In terms of account minimums, you can get started with any amount when opting for a standard self-directed portfolio. Moreover, deposit fees are not charged by this platform. We also like Interactive Brokers for its high-level research tools. IBKR GlobalTrader, for instance, allows you to screen suitable stocks based on a wide variety of metrics – such as P/E ratios.        

Minimum Deposit $0
Fractional Shares? Yes – $1 minimum
Pricing System 0% commission on US-listed stocks
Cost of Buying Amazon Stock Spread only

Pros

  • Highly advanced trading platform
  • Thousands of stocks on offer

Cons

  • Interntional stocks are charged at a premium
  • Perhaps not suitable for beginners
  • Specialist accounts come with high minimum deposit requirements

4. Schwab – $0 Commissions on US-Listed Stocks, ETFs, and Options

charles schwab reviewSchwab is yet another broker in the US that now offers 0% commissions on US-listed stocks. This is also the case with ETFs and stock options. As such, Schwab offers a low-cost way to build a diversified portfolio of American companies.

With that said, although Schwab offers access to plenty of international exchanges, additional fees will apply. We also like Schwab for its thematic stock lists. In a nutshell, this covers a pre-made basket of stocks across 40 different niche markets – such as cyber security, water sustainability, social networking, and even blockchain.

charles schwab review

And, when you invest in a thematic portfolio, there are no additional fees to pay. Another popular feature offered by this platform is the Schwab Stock Slices tool. This allows you to buy fractional shares in any company listed on the S&P 500 from just $5 per trade. This means that with a capital outlay of just $100, you could buy 20 different stocks. 

Schwab is also worth considering if you’re looking for a platform that offers high-level research and analysis tools. At Schwab, this includes everything from daily market updates and podcasts to investment guides and workshops. Finally, Schwab also offers tailor-made financial advice, albeit, this will come at a premium depending on your chosen plan.

Minimum Deposit $0
Fractional Shares? Yes – $5 minimum
Pricing System 0% commission on US-listed stocks
Cost of Buying Amazon Stock Spread only

Pros

  • Buy fractional shares from just $5
  • Top broker for creating automated portfolios

Cons

  • Fractional shares only available on S&P 500 companies
  • Non-US stocks come with high fees
  • Platform can be overbearing for newbies

5. Fidelity – Buy US Stocks From $1 Per Trade

fidelity reviewFidelity is popular with investors on a budget for its Stocks by the Slice tool – which enables fractional share purchases from just $1. This is the case with all supported stocks listed on the NYSE and NASDAQ. As such, if you’re planning to buy international stocks, fees at Fidelity will apply.

In a similar nature to Schwab, Fidelity gives you access to thousands of financial instruments outside of the stocks and shares space. This is inclusive of mutual funds, index funds, ETFs, fixed-rate bonds, and managed portfolios. We also like Fidelity for its abundance of available account types.

fidelity review

In addition to self-directed plans, this also includes retirement accounts across multiple IRAs. Fidelity is also a good option if you seek access to financial news and guidance via a single brokerage account. You will find articles and insights published throughout the day, alongside investing ideas. You can also set up pricing alerts and access upcoming IPOs.

Minimum Deposit $0
Fractional Shares? Yes – $1 minimum
Pricing System 0% commission on US-listed stocks
Cost of Buying Amazon Stock Spread only

Pros

  • Stocks by the Slice tool allows you to buy shares from just $1
  • Thousands of financial instruments listed

Cons

  • Mobile app is a bit cumbersome for beginners
  • High-level research tools are best suited for experienced traders
  • Financial planning accounts come with high minimums

6. SoFi – User-Friendly Broker Offering US Stocks at 0% Commission

SoFi investSoFi is home to a user-friendly trading platform that is ideal for newbies. You can open an account here in a matter of minutes and there is no minimum deposit to meet. Moreover, at SoFi, you can invest in US-listed stocks from just $5 per trade – so budget-conscious traders are catered for.

And, best of all, stocks can be bought and sold at SoFi on a commission-free basis. On the other hand, SoFi does not allow you to buy foreign stocks, which is a major drawback for those looking to achieve international diversification. Nevertheless, in addition to US-listed stocks, SoFi offers cryptocurrencies, ETFs, and access to upcoming IPOs.

SoFi invest

SoFi also allows you to open an automated investing account – which is backed by AI. Put simply. you will need to specify your long-term financial goals and risk tolerance – and the underlying AI software will build a suitable portfolio on your behalf. We also like the fact that SoFi offers Traditional, Roth, and SEP IRAs.

Minimum Deposit $0
Fractional Shares? Yes – $5 minimum
Pricing System 0% commission on US-listed stocks
Cost of Buying Amazon Stock Spread only

Pros

  • Very user-friendly – ideal for beginners
  • Offers 0% commission on US stocks

Cons

  • No support for international stocks
  • Too basic for seasoned investors
  • IPO allocation is limited

7. Ally Invest – Great Mobile App for Buying Stocks

Ally Invest review

If you’re wondering where to buy shares via your smartphone – Ally Invest offers one of the best stock broker apps. Available on both iOS and Android phones – the Ally Invest app allows you to register a brokerage account in minutes.

There are no fees to get started – nor do you need to meet a minimum deposit requirement. Once your Ally Invest account is set up, you can then buy thousands of US-listed stocks on a commission-free basis. However, we should note that, unlike the other stock broker companies that we have reviewed so far, Ally Invest does not support fractional shares.

Ally Invest review

Moreover, you won’t be able to buy shares listed on foreign exchanges, nor can you invest in cryptocurrencies like Bitcoin or Dogecoin. Ally Invest does, however, offer mutual funds and bonds, albeit, these investment products are not offered on a commission-free basis. Ally Invest also offers margin trading facilities – which requires a minimum balance of $2,000.   

Minimum Deposit $0
Fractional Shares? No – not supported
Pricing System 0% commission on US-listed stocks
Cost of Buying Amazon Stock Spread only

Pros

  • Very user-friendly – ideal for beginners
  • Offers 0% commission on US stocks

Cons

  • No support for international stocks
  • Too basic for seasoned investors
  • IPO allocation is limited

8. E*TRADE – Good Broker for Long-Term Stock Investments

E*TRADE review

For long-term investors that are looking to build a portfolio for their retirement years – E*TRADE is a good option to consider. At this popular online brokerage, you will have access to Roth, Rollover, and Traditional IRAs. If you’re not sure which IRA is right for you, E*TRADE offers plenty of guidance.

In addition to retirement accounts, E*TRADE also offers standard self-directed plans and core portfolios. The latter allows you to invest in a 100% passive manner after specifying your financial goals, albeit, this requires a minimum deposit of $500 and attracts an annual fee of 0.30%. Self-directed plans, however, come with no account minimums or annual fees.

E*TRADE review

In terms of trading fees, E*TRADE does not charge any commissions on US-listed stocks. However, take note that fractional shares are not supported. This is also the case with US-listed stock options and ETFs. Getting started with an E*TRADE account typically takes just 10 minutes from start to finish and you can fund your stock investments with ACH or a bank wire. 

Minimum Deposit $0
Fractional Shares? No – not supported
Pricing System 0% commission on US-listed stocks
Cost of Buying Amazon Stock Spread only

Pros

  • Great selection of retirement accounts
  • No minimum deposit and accounts take just 10 minutes to open

Cons

  • No fractional shares
  • Limited number of investment tools
  • Pre-built portfolios require a $500 investment

9. TD Ameritrade -Top-Rated Stock Broker for Seasoned Traders

td ameritrade review

If you’re a seasoned investor that seeks high-level stock trading tools – TD Ameritrade is well worth considering. This trusted online broker is behind the popular thinkorswim platform – which offers everything you need to trade stocks in a professional setting.

This includes everything from fully customizable charting screens and market scanning to technical indicators and the ability to test-drive trading strategies. The thinkorswim platform is accessible online or via downloadable desktop software. TD Ameritrade also offers a mobile trading app for iOS and Android.

td ameritrade review

When it comes to pricing, TD Ameritrade is yet another online broker that offers commission-free trading on US-listed stocks, ETFs, and options. The platform also offers cryptocurrency trading, alongside forex, mutual funds, and margin facilities. What we also like about TD Ameritrade is that the brokerage firm offers in-person assistance and financial guidance across 175 branches.

Minimum Deposit $0
Fractional Shares? No – not supported
Pricing System 0% commission on US-listed stocks
Cost of Buying Amazon Stock Spread only

Pros

  • Highly advanced thinkorswim trading suite
  • Top-rated broker for seasoned investors

Cons

  • No fractional shares
  • Commission-free access to US-listed stocks only
  • Too advanced for beginners

10. Robinhood – Best Online Stock Broker for Beginners

Robinhood review

If you’re wondering where to buy shares as a complete novice – Robinhood is perhaps the best stock broker for beginners. Through its online platform and mobile app. Robinhood enables you to open an account in minutes and subsequently buy stocks from just $1 per trade.

Moreover, you won’t need to meet a minimum deposit requirement and all US-listed stocks can be traded commission-free. In fact, you won’t pay commissions on any supported asset classes at Robinhood – which includes ETFs, cryptocurrencies, and stock options. In terms of making a deposit, only ACH, domestic bank wires, and checks are supported.

Robinhood review

Furthermore, if you are on the standard account, only the first $1,000 will be processed instantly. If you want higher instant deposits, you will need to open a Robinhood gold account. This costs just $5 per month and will also get you access to margin trading tools. Finally, Robinhood does not offer access to international exchanges, but you can buy ADRs.

Minimum Deposit $0
Fractional Shares? Yes – $1 minimum
Pricing System 0% commission on US-listed stocks
Cost of Buying Amazon Stock Spread only

Pros

  • Great option for first-time investors
  • No commissions charged on US-listed stocks, options, ETFs, or cryptocurrencies

Cons

  • Only offers international shares via ADRs
  • Standard accounts limit instant deposits to $1,000
  • No passive investment tools

Best Online Stock Brokers Compared

If you’re still not sure where to buy stocks in the US for your skillset and financial goals – check out our comparison table below of the 10 brokers that we reviewed.

Stock Broker Minimum Deposit Fractional Shares? Pricing System Cost of Buying Amazon Stock
eToro $10 Yes – $10 minimum 0% on ALL stocks Spread only
Webull $0 Yes – $5 minimum 0% commission on US-listed stocks Spread only
Interactive Brokers $0 Yes – $1 minimum 0% commission on US-listed stocks Spread only
Schwab $0 Yes – $5 minimum 0% commission on US-listed stocks Spread only
Fidelity $0 Yes – $1 minimum 0% commission on US-listed stocks Spread only
SoFi $0 Yes – $5 minimum 0% commission on US-listed stocks Spread only
Ally Invest $0 No – not supported 0% commission on US-listed stocks Spread only
E*TRADE $0 No – not supported 0% commission on US-listed stocks Spread only
TD Ameritrade $0 No – not supported 0% commission on US-listed stocks Spread only
Robinhood $0 Yes – $1 minimum 0% commission on US-listed stocks Spread only

What to consider when buying stocks

When deciding on where to buy stocks, there are a number of important factors that you need to consider before opening a brokerage account. This will ensure that you choose the best stock broker for your personal requirements. 

The most important considerations to make are discussed below:

Regulation

Regulation is the most important metric to consider when choosing where to buy stocks in the US.

All of the 10 brokers that we reviewed on this page are regulated by the SEC and registered with FINRA. As such, you can invest in a safe and secure environment. 

Range of Stocks

All of the brokers discussed on this page give you access to thousands of US-listed stocks. However, only a few – namely eToro, Interactive Brokers, and Fidelity allow you to invest in shares that are listed overseas.

eToro, in particular, stands out here, as it’s the only broker that we came across that offers 0% commission access to foreign stocks. You’ll also have access to the best oil stocks on the market, which is especially useful as most investors’ attention is focused on the current cost of living crisis and the surge in fossil fuel prices. 

Minimum Deposit

While some brokers require a high minimum deposit to open an account, others allow you to get started with just a few dollars. This means that you can buy stocks online even if you are on a budget.

Fractional Shares

Many brokers in the US now allow you to buy fractional shares. This means that you no longer need to outlay over $3,000 to buy a share in Amazon. On the contrary, at eToro, you only need to invest $10. 

Moreover, this means that you can buy portions of the best meme stocks with eToro. These include the likes of GameStop and Tesla.

Fees

All of the brokers reviewed on this page allow you to buy US-listed stocks at 0% commission. This means that the only fee you need to look out for is the spread – which is the difference between the bid and ask price of the respective stock.

etoro supported stocks

You should also be aware of non-trading fees surrounding deposits and withdrawals, specialist accounts, non-US assets, and margin trading.

Trading Tools

Seasoned investors will likely want to choose a stock broker that offers high-level trading tools – such as technical indicators, screens, support for high-frequency orders, and customizable charts. 

Beginners and time-starved investors will likely appreciate passive trading tools. For instance, eToro offers copy trading tools and smart portfolios, while Fidelity and Interactive Brokers give you access to managed investment accounts.

Demo Accounts

Demo accounts are ideal for both newbies and seasoned traders – so this is another thing to look for when deciding where to buy stocks.

Crucially, if your chosen broker offers a free demo account that mirrors live market conditions – you can test-drive your trading strategies in a risk-free environment. As such, eToro happens to offer one of the Best Demo Stock Trading Accounts on the market. 

Mobile App

All of the 10 brokers discussed today allow you to buy and sell stocks via a native mobile app for both iOS and Android. Usually, this connects to your main account – so you can trade both online and via your smartphone.

Just make sure that the trading app is user-friendly and correctly optimized for your phone’s operating system. 

Payment Methods

Most online stock brokers in the US only allow you to deposit funds with ACH, domestic bank wires, or a check. However, at eToro, you can also deposit funds with a debit or credit card and even use an e-wallet like Paypal to buy stocks

Customer Service

Finally, consider what level of customer service you will receive at your chosen platform. The best stockbrokers in the online space offer both live chat and a telephone support line. The likes of TD Ameritrade even offer support via a physical branch.

How to Buy Stocks – eToro Tutorial

So now that you know where to buy stocks online and what factors to consider when choosing a broker – we are now going to walk you through the simple investment process.

This covers the process of opening a brokerage account, making a deposit, finding your preferred stock, and finally – placing an order.   

Note: For this tutorial on how to buy stocks online, we show you the required steps with eToro – which offers commission-free access to thousands of US and international shares from just $10 per trade.

Step 1: Open an eToro Stock Broker Account 

The first part of the process is largely the same at all of the online brokers that we have reviewed today. However, the key difference is that at eToro – you can open a verified trading account in less than five minutes from start to finish.

etoro review

So, visit the eToro website and click on the ‘Join Now‘ button. You will then see a registration form that requires some personal information and a chosen username and password.

You also need to enter and verify your cell phone number and email address.

Step 2: Upload ID

Another part of the registration process that is required across all SEC brokers is the KYC procedure. All this requires is a copy of your passport/driver’s license and proof of address.

In most cases, eToro can verify both documents in less than a minute. Your account will then be verified.

Step 3: Deposit Funds

As a US client, you only need to meet a minimum deposit of $10 to activate your eToro account. There are no deposit fees charged on US dollar deposits.

buy dogecoin at etoro

Choose from one of the many supported deposit methods to complete your payment – which includes ACH, e-wallets like Paypal, and debit/credit cards.

Step 4: Search for Stock

There are two ways to find the stock that you wish to buy via the eToro platform. First, if you know which stock you want to buy, enter the name of the company into the search box. In our example below, we are searching for Amazon.

how to buy amazon stock on eToro

If you don’t know which stock you want to buy, click on the ‘Discover’ button. You can then narrow your search down by a variety of metrics – such as the respective sector or exchange, and whether the stock is a market mover.

Step 5: Buy Stock 

When you see the stock you want to buy, click ‘Trade’. This will then bring up an order box.

how to buy amazon stock on eToro

To complete your 0% commission stock order, click on the ‘Open Trade’ button.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider.

Note: You will instead need to click on ‘Set Order’ if the respective stock exchange is closed at the time of the order.

The Basics of Buying Stocks

Before you build a portfolio of stocks, it’s a good idea to have a firm grasp of the basics.

Here’s what you need to know:

  • When you buy a stock, you are purchasing a share of the company in question
  • Your ownership in the company is determined by the number of stocks you buy in relation to the total shares in circulation
  • In simplistic terms, if the company has 1 million shares in circulation and buy 10,000 stocks – you own 1% of the firm
  • When you buy a stock, you will also be entitled to dividends if the company has a profit distribution policy in place
  • The overarching objective when you buy stocks is to sell the shares at a higher price

Just remember, the value of the stocks that you buy will go up and down throughout the trading day. Moreover, there is no guarantee that your shares will increase in value over the course of time – which is why it is important to diversify.

How do I Find the Best Stocks to Buy?

There are thousands of stocks listed in the US across the NYSE and NASDAQ. You can also buy shares listed on foreign exchanges, so choosing the best stocks for your portfolio is no easy feat.

Some of the best ways to choose stocks are as follows:

Stock Type

First, consider what type of stock you are buying. For example, if you buy growth stocks – these are up and coming companies that typically carry a smaller market capitalization. As such, both the upside potential and risk are higher.

On the other hand, blue-chip stocks are established companies that have usually dominated their respective sector for many years, so the risks and potential returns will be more conservative.

Sector

You should also consider the sector that the stock operates in. For example, in the midst of the covid pandemic, tech stocks and online retailers performed very well. While stocks operating in the oil and gas, travel, and aviation sectors struggled.

With that said, as we cover in more detail shortly, it’s best to invest in stocks from a wide variety of sectors. In doing so, you will avoid being overexposed to a small number of markets.

Accounting Ratios

Another way to pick the best stocks for your portfolio is to explore key accounting ratios. One of the best metrics to start with is the price-to-earnings (P/E) ratio, which seeks to assess if a stock is potentially undervalued.

For instance, if the firm has a P/E ratio of 14 but the industry average is 25, this could mean that you are looking at an undervalued stock.

Other important ratios to look at include the debit-to-equity, price-to-book value (P/BV), and operating profit margin (OPM).

Earnings Reports

All public stocks are required to release an earnings report every three months. This outlines a full overview of how the company has performed in terms of revenue, operating profit and margin, free cash flow levels, and debt.

You can then compare these figures to prior Wall Street projections.

For instance, if it was projected that a company would generate $1 billion in revenue for the quarter, but it actually made $1.2 billion, then this will likely have a positive impact on the firm’s stock price.

Top 10 Stocks to Buy Right Now

If you’re not quite at the level of analyzing companies yourself, you might want to consider the 10 stocks outlined below.

These stocks cover a wide variety of sectors, industries, and risk/reward ratios – so you can easily build a diversified portfolio.

  1. Amazon – This stock is potentially worth buying and holding for many decades. Amazon not only dominates the online retail sector by a considerable margin, but it is also diversified into other key markets. This includes everything from AI and streaming services to drone deliveries and groceries.
  2. Tesla – This electric car stock is now the world’s largest automaker. Tesla is one of the best-performing stocks of all time – with gains of over 25,000% since it went public in 2010. Crucially, Tesla is now a trillion-dollar company.
  3. NVIDIA – This NASDAQ-listed stock dominates the global GPU space. Over the prior five years alone, NVIDIA stocks have increased by nearly 1,000%.
  4. Dover – This conglomerate is involved in a range of products and services – including digital solutions, engineering equipment, and energy fueling. Most importantly, Dover is a dividend king that has increased the size of its annual payment for more than six consecutive decades.
  5. Coca-Cola – This globally recognized brand is a solid blue-chip stock that can offer some much-needed stability to your portfolio. Coca-Cola is also a top-rated dividend king, with increased annual payments for nearly 60 consecutive years.
  6. Apple – Just like Coca-Cola, Apple is a solid blue-chip stock with a strong brand following. Apple stocks have increased in value by over 43% and 386% in the prior one and five years respectively. A small dividend yield is also paid by Apple.
  7. ConocoPhillips – Oil and gas prices are at record highs – which has been further amplified by Russian sanctions. One of the best stocks to profit from this is ConocoPhillips – which has seen its shares increase by almost 100% in the prior year alone.
  8. American Airlines – If you’re looking for undervalued stocks and are prepared to take enhanced risks for a higher upside potential, consider American Airlines. Although the stocks are down 25% over the prior year, this is largely due to reduced travel numbers. When travel gets back to pre-covid levels, American Airlines stocks could go on a prolonged bullish run.
  9. Costco Wholesale – This company is a staple stock, not least because Costco products are in demand regardless of how the economy is performing. Over the prior five years, Costco stocks have returned gains of over 230%.
  10. Coinbase – Not only is Coinbase a growth stock operating in the emerging cryptocurrency sector, but its shares are arguably undervalued. By entering the market now, you can buy Coinbase stock at a 45% discount from its IPO.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider.

The above stock picks are just 10 from thousands of publicly-listed companies. As such, you should do your own research rather than buying stocks on the back of somebody else’s analysis.

How do You Make Money from Stocks?

It goes without saying that when you buy stocks, you are doing so to make money.

In many cases, this will be on a long-term basis, meaning that you will look to grow the value of your stock portfolio over many years or even decades.

Below, we explain the main ways that you can make money from a stock investment.

Capital Gains

The best way to make money from a stock investment is through capital gains. This refers to the process of buying shares and then selling them at a later date for a higher price.

For instance:

  • Let’s say that in 2022, you buy 10 Apple stocks at a price of $174 per share
  • This means that in total, your investment in Apple amounts to $1,740
  • In 2025, Apple shares are trading at $244 each
  • As such, you decide to cash out your 10 Apple stocks – so you receive a total of $2,440

As per the above example, you originally invested $1,740. Three years later you cashed out at $2,440 – so your capital gains amount to $700.

apple stock price

Take note, you will need to pay tax on the capital gains aspect of your stock investments.

Dividends

In addition to capital gains, you can also make money from a stock investment via dividends.

This refers to when a company shares some of its retained profits with stockholders. Not all companies pay a dividend, but if they do, you will be entitled to your share.

For instance:

  • You buy 100 Coca-Cola shares
  • In Q2 2022, Coca-Cola announces a dividend of $0.40 per share
  • You own 100 shares, so you receive a total dividend payment of $40

In most cases, dividend-paying companies distribute a payment every three months.

You might also be entitled to a special dividend. This is in addition to the firm’s quarterly dividend cycle and is usually paid when the company has a high surplus of cash.

Just like capital gains, dividends also attract tax.

Compound Interest

Compound interest is more of a strategy than a specific way of making money from stocks.

In its most basic form, this concept refers to the process of earning interest on top of the interest that you have already generated.

And in turn, you can grow the value of your portfolio considerably faster – especially if you engage in a compound interest strategy over several decades.

For instance:

  • Let’s say that you invest $10,000 into the stock markets in 2022
  • Over the course of the year, you generated 5% in dividend payments – which is $500
  • You reinvest these dividends back into the stock markets – so your portfolio is now worth $10,500
  • In 2023, you again make 5% in dividends. Only this time, your 5% amounts to $525 (5% of $10,500)

The above process is repeated each and every time you receive a dividend payment – meaning that your portfolio continues to grow.

Some online brokers even offer a dividend reinvestment plan (DRIP), which enables you to automatically reinject your quarterly payments back into the markets.

Are Stocks Taxed?

Yes, as a stock investor, you will be liable for tax. This generally comes in two forms – capital gains and dividends.

  • Capital gains are typically not payable until you sell a stock.
  • For instance, you could watch the value of a stock increase over the course of 10 years, and not need to pay any tax.
  • But, when you eventually cash out, the tax will be payable on the capital gains element of the sale.

In terms of dividends, this is taxable when you receive the payment.

Specific tax rates will vary depending on your personal circumstances, so make sure you seek guidance from a qualified advisor.

Top Tips for Buying Stocks?

If you are a complete newbie to the stock markets, consider the following five tips before you start buying stocks on eToro.

Tip 1: Diversification

We mentioned diversification earlier, which refers to the process of investing in a wide variety of companies to reduce your long-term risk.

  • For example, a poorly advised stock investor might decide to allocate their entire $5,000 balance into one stock. If the stock begins to plummet, so will the value of their investment.
  • On the other hand, if you were invested in this stock alongside dozens of others, you wouldn’t feel the market decline quite as much.

To diversify well, your portfolio should cover many different stock market sectors – such as energy, real estate, tech, banking, and healthcare. Moreover, if you’re going to invest in higher-risk growth stocks, make sure to add a good number of blue-chips too.

Tip 2: Look for Undervalued Stocks

Another great tip for buying stocks is to try and find companies that are undervalued. There are many reasons why a firm might carry an undervalued stock price – both in terms of internal and external factors.

  • For example, when Apple recently announced that sales on its latest iPhone model were slightly under what it had anticipated, this had a negative impact on its share price.
  • However, it didn’t take long for the stocks to recover.
  • As such, had you invested when the stocks took a slight dip, you would have entered the market at a much more favorable price.

Another reason why a stock might be undervalued is because of broader sector issues.

For instance, when covid was declared a pandemic, aviation stocks like Southwest, Delta, and American Airlines went on a prolonged bearish cycle.

This was, of course, no fault of airline companies themselves, so this offered a great chance to invest at an undervalued price.

Tip 3: Dedicate Time to Research

Rather than relying on third-party advice, it’s best to choose stocks based on your own research. This will ensure that you are choosing stocks that are aligned with your financial goals and risk tolerance.

And, the only way that you can do this is to dedicate a sufficient amount of time throughout the week researching the markets.

Not only will you need to research individual companies, but broader economic drives surrounding interest rates and geopolitical events.

Tip 4: Consider Copy Trading 

If you don’t have the time or experience to research the stock markets effectively, you might want to consider a passive investment tool like the eToro copy trading feature.

etoro copy trading

This gives you access to thousands of verified investors that use eToro to trade. When you find an investor you like, you can elect to copy their ongoing trades.

For instance:

  • Let’s say you invest $2,000 with a seasoned stock trader
  • The trader allocates 10% of their capital into Apple stocks and 5% into Tesla
  • This means that of your $2,000 investment, $200 is automatically allocated to Amazon and $100 to Tesla

This is a great way to invest in the stock markets without needing to have any experience. No additional fees are charged to use the copy trading tool and the minimum investment is just $200 for each trader that you follow.

Tip 5: Avoid Panic Selling 

The final tip to consider is with respect to market volatility. After all, the stock markets will never move in a straight line. Rather, they go up and down throughout the trading day.

Although it can be tempting to panic sell your stocks when prices are moving in the wrong direction, the general rule of thumb is to hold onto shares for at least five years.

This will allow you to ride out market waves. With that said, there might be the odd exception if the company in question no longer represents a viable investment for your financial goals.

Guides to Buying Stocks

To learn more about stock investing, check out our expert guides.

Conclusion

This beginner’s guide has explained the nuts and bolts of investing in the stock market for the very first time. We’ve covered important factors surrounding where to buy stocks safely, which companies to consider for your portfolio, and how to choose shares on a DIY basis.

If you’re ready to buy stocks right now – you can complete the investment process at eToro in under five minutes. This popular broker supports thousands of US and international stocks at 0% commission and shares can be purchased from a minimum of just $10.

etoro review

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

Frequently Asked Questions on Buying Stocks 

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