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Using an on-line stock broker or brokerage to buy and sell stocks has pros and cons. It really comes down to two different questions and your answers to them.

1) How comfortable are you with faceless, on-line transactions?

2) How much assistance, guidance, or advice are you looking for in your stock market trades?

Yes, there are on-line brokerages that offer telephone support, on-line chat support, and highly intuitive help programs. However, you still need to be comfortable with the idea of never sitting across the desk with the person with whom you are investing. There is a significant amount of fluff on almost every on-line brokerage's website, but when you cut through it all, trading on-line is primarily a solo deal.

If you are comfortable with the world of Internet commerce, there are real advantages. The chief advantage is cost-much lower (as much as 85% less) than traditional brokerages. There is also time flexibility, i.e. you can manage your investment account any time of the day or night. You can use whole dollar investing (ex: invest $50.00 per month in a stock, whether that buys 12 shares or .25 share).

There isn't a right way or a wrong way. You just have to determine in which way you are going to be the most comfortable. Investing in the stock market can cause enough sleepless nights if you allow it; loosing even more sleep of how you invest just doesn't make sense.

Review the two questions we started with. Based on how you answered those questions, pick the right method of investing and start.

Remember, while no decision is final, and you can change you mind later-but doing so may have significant tax consequences.

The experts will often tell amateur investors to pick a stock, or index fund, or mutual fund, then buy it and keep it; reminding them they are in it for the long haul. In much the same way, pick the method you are most comfortable with, invest with it and keep it.

Learn more about this author, Christopher Mcgown.
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