How to Buy Stocks Online Without a Broker

Investors have traditionally used professional brokers to manage their investment portfolios, but that is certainly not a requirement. A 2025 Gallup survey found that only 41% of investors consult a financial advisor. It is possible to go it alone, but it’s also a good idea to arm yourself with the right strategies, as there are a few viable avenues for independent investors. If you feel that it is time to take control of your investment portfolio, this is how to buy stocks online without a broker.

Whether or not you’re buying equities on your own, without a brokerage account or an actual broker, a professional financial advisor remains a powerful resource as you decide which securities to add to your portfolio.

DSPPs (Direct Stock Purchase Plans)

A direct stock purchase plan (DSPP) is best used if you’re interested in a business that has gone public. Be sure to do your due diligence to confirm whether the company even offers a DSPP, as DSPPs only apply to a select number of companies that offer stock to the public for long-term investment.

DSPPs also offer some notable advantages. Arguably the greatest appeal of a DSPP is the passive and largely automated experience that investors enjoy. Simply contribute your desired amount of funds through a DSPP and then you can contribute more later when it’s best for you.

Since DSPPs have such a hands-off approach over the long term, investor data privacy and security are less vulnerable to theft or abuse. In other words, they provide solo investors with the peace of mind that their investment data is unlikely to be sold or shared improperly.

With the knowledge that DSPPs are best suited for long-term investing, it’s safe to say that these plans are not the best options for investors who prefer the flexibility of short-term trading made possible by a brokerage account. DSPPs also require that investors maintain their plans separately from other types of investment accounts, potentially causing headaches for those who like having everything in one place.

DRiPs (Dividend Reinvestment Plans)

Like a DSPP, a dividend reinvestment plan (DRiP) is a good choice for solo investors interested in a publicly traded company. While there are similarities to DSPPs, reinvestment plans like DRiPs use the dividends you earn from stocks to buy more stocks so you can (hopefully) receive a larger return on investment (ROI) on a regular basis.

DRiPs focus on portfolio investments that trigger compounded growth on your returns. As compound interest works, you can use DRiPs to reinvest in a company’s dividends. This allows investors to keep growing their portfolios without having to regularly contribute more funds. And, similar to DSPP platforms, DRiP platforms prioritize the protection of your data from intruders by securing highly sensitive personal and financial information.

As is the case with DSPPs, DRiPs come with their own set of drawbacks, depending on your investment goals and objectives. Only certain companies offer DRiP accounts, which means you will need to double-check the stocks that you can purchase. Investors interested in starting a DRiP account should bear in mind that gains from DRiPs are taxable income and require you to have the proper liquidity to compensate for the taxes owed on such gains.

How to Sell DSPP and DRIP Shares

Both DSPPs and DRIPs allow you to purchase stock from a company or broker – and sometimes, without even a fee. DSPPs, in particular, often use third-party transfer agents to handle the transactions. However, the shares of a DSPP are also illiquid, meaning that it’s very hard for you to sell the shares without the aid of a broker. 

As a result, it’s best to have a long-term strategy before investing in a DSPP since you will not have as much control over selling them. The transfer agent you use, for example, will most likely need to determine the trade date for the sale.

In the case of a DRIP, you can purchase shares of a stock using the dividends of the existing stock you already own. When it comes time to sell the shares, you can do so independently since there is no broker. 

However, depending on the stock, you may need to contact a third-party transfer agent in order to place the market order necessary to complete the sale. Something important to keep in mind with DRIPs is they are not sold on the actual market, so when you complete a sale, the company you purchased the stock from will purchase the stock back from you.

Depending on your plan prospectus, there may be minimum dollar purchase requirements for both DSPPs and DRIPs, which typically range from $100 to $500, depending on the account.

Online Brokerage Accounts

While DSPPs and DRiPs can certainly help solo investors begin purchasing shares themselves, they can also be restrictive and confusing. 

One alternative to both DSPPs and DRiPs is an online brokerage account. These are the accounts you open with a financial institution. Just like traditional brokerage accounts, these are available on many online trading platforms that are suitable for both beginners to investing, as well as veterans. It is important to familiarize yourself with the top online trading platforms on the market, as well as the tools and controls they use.

One of the biggest benefits of online brokerage accounts is the low cost. Many accounts charge nothing or just a minimal fee to trade certain types of securities. 

However, you should be aware that companies advertising zero-commission trades may be getting compensated by market makers for order flow, which can affect your profit, especially if you’re an active trader. As with DSPPs and DRiPs, keep in mind that you are responsible for everything from the stocks that you purchase to choosing the best time to sell your funds.

Pros and Cons of Buying Stocks Without a Broker

Buying stocks without a broker can be an empowering move for many investors, but it is important to understand the trade-offs. While you gain more control and potentially save money, you may also face limitations and added responsibilities.

Pros

• Lower fees: By bypassing brokers, you can avoid management fees or trading commissions in some cases, keeping more of your returns.
• Greater control: Self-directed investors can make decisions based on their own timelines and research without waiting for broker input.
• Direct ownership: With DSPPs and DRiPs, you may receive stock directly from the issuing company, which can include perks like voting rights.
• Passive investing options: Programs like DRiPs allow you to automate reinvestments and grow your portfolio over time with minimal active involvement.

Cons

• Limited investment options: Not all companies offer direct stock purchase or reinvestment plans, which narrows your universe of potential investments.
• Less liquidity: Selling shares from a DSPP or DRiP may involve delays or restrictions, and transfer agents may control sale timing.
• Lack of guidance: Without a broker, there’s no one to offer personalized investment advice or strategy.
• More research required: You’ll need to take a hands-on approach to analyzing stocks and managing your portfolio, requiring time and effort.

How to Research Stocks Before Buying

If you are planning to buy stocks on your own, especially without the guidance of a broker, it is essential to know how to evaluate a company before you invest.

Start With Company Disclosures

Consult official sources, such as SEC filings like 10-Ks (annual reports), 10-Qs (quarterly reports) and 8-Ks (event reports). Also, be sure to check investor relations pages on company websites to review press releases, earnings calls and corporate governance updates.

Key Metrics to Consider

When evaluating a stock, there are a few key metrics that can offer insight into the company’s financial health and growth potential.

• Price-to-earnings (P/E) ratio: The price-to-earnings (P/E) ratio is a commonly used measure that compares a company’s stock price to its earnings per share, helping investors determine whether the stock may be overvalued or undervalued. 
• Dividend yield: Another important metric is the dividend yield, which indicates how much a company pays in dividends relative to its stock price. This can be especially useful for income-focused investors seeking regular payouts. 

Reviewing a company’s earnings growth, particularly consistent year-over-year increases, can help identify businesses with strong long-term performance potential. 

Helpful Research Tools

Several platforms offer in-depth data and tools to help you analyze stocks.

A little research can go a long way in helping you make strategic investment choices, especially when flying solo.

Bottom Line

If you are wondering how to buy stocks online without a broker, you certainly have options. There are multiple ways to invest in stocks without the help of a brokerage or  full-time investment broker. To start, consider whether your investment plans are for the long or short term. DSPPs and DRiPs tend to work better for long-term investment strategies, while online brokerage accounts can be more conducive to both short-term and long-term portfolio management. After all, there is no one-size-fits-all approach to buying stocks solo. Be sure to thoroughly research your options before you decide on the best way to buy stocks online without a broker.

Even if you prefer to go it alone, consider consulting a financial advisor for guidance on where and how to start investing in the stock market.

Tips on Investing

• Consider working with a financial advisor as you decide on how you want to buy and sell stocks. The right pro can help you put together a full financial plan or manage your investments for you. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Whether you’re considering getting started with investing or you’re already a seasoned investor, an investment calculator can help you figure out how to meet your goals. It can show you how your initial investment, frequency of contributions and risk tolerance can all affect how your money grows.

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