Can I Buy and Sell Stocks on My Own?

Can I Buy and Sell Stocks on My Own?

If you’re wondering “can i buy and sell stocks on my own”, the short answer is yes. Most individual investors can place buy and sell orders without a full-time broker by using online or discount brokerages, direct stock purchase plans (DSPPs), or self-directed accounts at major firms. This article explains what that looks like, what you need, the tradeoffs, and step-by-step actions to begin trading on your own.

Read time: comprehensive guide for beginners and DIY investors. This article covers accounts, order types, fees, settlement, taxes, risk controls and a practical starter checklist.

Overview of Self-Directed Stock Trading

When people ask “can i buy and sell stocks on my own”, they usually mean: can I research, place, and manage stock trades without hiring a human advisor to execute each trade? Self-directed trading (also called do-it-yourself or DIY trading) means you choose investments and enter orders through a trading platform — typically an online or mobile brokerage — rather than relying on a full-service broker to buy or sell for you.

Technology has reduced barriers: modern trading apps, research tools, screeners, and education let most retail investors open accounts, fund them, and place trades from their phone or desktop. Self-directed investing differs from advisory services in that you control trade decisions and execution; advisory or full-service models add human advice, personalized planning, or discretionary portfolio management for fees.

If you want the short workflow: open an account, fund it, search the stock’s ticker, select buy or sell, choose quantity and order type, submit, and monitor execution and settlement. The rest of this guide expands each step and explains what can go wrong and how to protect yourself.

Ways to Buy and Sell Stocks on Your Own

There are several common channels for individual investors asking “can i buy and sell stocks on my own”. Each has different costs, convenience, and limits.

Online / Discount Brokerages

Online brokerages provide web and mobile platforms to place trades, view real-time prices, run screeners, and access research. Examples of large U.S.-focused brokerages include major national firms and discount brokers; these firms typically provide cash and margin accounts, IRAs, and trading tools. Many now offer $0 commission trading on U.S.-listed stocks and ETFs (confirm current pricing with the broker). Features include order ticket screens, limit/market/stop orders, conditional orders, watchlists, and educational content.

Key points:

• Platforms handle order entry, routing, execution, confirmations, and custody.
• Many brokers support fractional shares, fractional-dollar investing, and DRIP enrollment.
• Mobile apps enable trades from anywhere; desktop platforms often include advanced charting and order types.

Full-Service Brokers vs. Discount Brokers

Full-service brokers offer personalized advice, financial planning, and discretionary management; fees can be commissions, wrap fees, or advisory percentages. Discount brokers focus on trade execution and self-service tools at lower cost. If your question is “can i buy and sell stocks on my own” the discount/online broker model is the most common answer: it enables direct control at lower cost but without bespoke advice.

Direct Stock Purchase Plans (DSPPs) and Dividend Reinvestment Plans (DRIPs)

Some companies and transfer agents allow investors to buy shares directly without a traditional brokerage via DSPPs, and to reinvest dividends automatically through DRIPs. The SEC and Investor.gov describe DSPPs and DRIPs as straightforward options for long-term investors, though they may restrict which companies participate and can charge modest fees or have periodic processing schedules.

Practical notes:

• Not all companies offer DSPPs; enrollment is through the company or its transfer agent.
• DRIPs automatically reinvest dividends into additional shares, often without commission.
• DSPPs can be convenient for recurring purchases but may lack the speed and flexibility of broker execution.

Robo-Advisors and Managed Accounts (brief)

Robo-advisors automate portfolio allocation and execute trades on your behalf based on rules or algorithms. While they let you avoid a human broker, they are not fully self-directed trading because the platform decides when and what to trade. For investors who want hands-off management, robo-advisors are an alternative to fully DIY trading.

Types of Brokerage Accounts

Choice of account affects how you buy and sell stocks, tax treatment, and permissible activity.

Cash Accounts

A cash account requires you to pay the full cost of purchases with available cash. Standard settlement rules apply (typically two business days after trade date for U.S. equities, i.e., T+2), and you cannot use proceeds from unsettled trades to fund new purchases until settlement.

Margin Accounts

Margin accounts let you borrow against the value of securities to increase buying power. Margin amplifies gains and losses, obliges interest payments on borrowed funds, and carries additional margin maintenance requirements. Brokers set margin rates and margin rules (initial margin, maintenance margin). Because margin increases risk, review margin agreements and understand margin calls before trading on borrowed funds.

Retirement and Tax-Advantaged Accounts (IRA, Roth IRA)

IRAs and Roth IRAs provide tax-advantaged wrappers for trading. They impose contribution, distribution, and prohibited transaction rules (for example, margin borrowing is typically not allowed in IRAs). Gains inside these accounts receive different tax treatment: taxable events inside a Roth can be tax-free on qualified withdrawals; traditional IRAs typically defer taxes until withdrawal.

Other Account Types (custodial, trust, 529s)

Custodial accounts (UGMA/UTMA), trust accounts, and 529 plans each have specific rules and restrictions. Custodial accounts are managed for minors until legal age; trust accounts follow trustee instructions; 529s are for education and have limitations on investments and qualified distributions.

How to Place a Trade — Step-by-Step

If you still wonder “can i buy and sell stocks on my own” here is a practical, stepwise checklist.

1. Decide your objective and time horizon (short-term trade vs. long-term investment).
2. Choose the account type (cash, margin, IRA). If retirement benefits are desired, select an IRA or Roth IRA.
3. Compare brokers for costs, platform features, research, fractional shares, and customer support.
4. Open and verify your brokerage account (ID, address, SSN/Tax ID, risk profile).
5. Fund the account via ACH, wire, or transfer. Allow time for verification and settlement.
6. Look up the company’s ticker symbol and confirm the exchange listing.
7. Select action: Buy or Sell.
8. Choose quantity (shares or dollar amount if fractional shares supported).
9. Pick an order type and time-in-force (market, limit, stop; day or GTC).
10. Preview order fees and estimated cost, then submit the order.
11. Monitor execution: you’ll receive a confirmation and can track fills in the account activity tab.
12. Track settlement (T+2 for U.S. equities) and keep records for taxes and basis tracking.

Order Types and Trade Mechanics

Understanding order types helps you control execution and price.

Market Orders

Market orders execute at the next available price. They prioritize speed of execution over price certainty and may produce unexpected execution prices in fast-moving or illiquid markets.

Limit Orders

A limit order specifies the maximum price you’ll pay when buying, or the minimum you’ll accept when selling. Execution is guaranteed only at the limit price or better; the trade may not fill if prices never reach the limit.

Stop and Stop-Limit Orders

Stop orders trigger a market order when a specified stop price is reached (useful for exits). Stop-limit orders convert into a limit order at the stop trigger, which controls price but may not execute if the limit is missed.

Time in Force (Day, GTC)

Day orders expire at the end of the trading day if unfilled. Good-til-Canceled (GTC) orders remain active across days until filled or canceled (some brokers cap GTC duration — check broker rules).

Partial Fills, Routing and Execution Quality

Large orders may be partially filled if not enough shares are available at the desired price. Brokers route orders for execution; routing affects execution quality and price improvement. Some brokers disclose order routing practices and whether they receive payment for order flow (PFOF). Execution quality depends on liquidity, venue, and order type.

Costs, Fees, and Other Charges

When deciding “can i buy and sell stocks on my own” you should factor in both explicit and implicit costs.

Commissions and Per-Trade Fees

Many brokers offer $0 commission trades for U.S. listed stocks and ETFs, but verify the broker’s current fee schedule. International trades, broker-assisted trades, or certain products may still carry commissions.

Options, Mutual Fund, and Other Product Fees

Options trades often charge a per-contract fee. Some mutual funds have transaction fees or short-term redemption fees. ETFs may have creation/redemption costs that show up as spreads or tracking differences.

Margin Interest, Account Fees, and Transfer Fees

Margin interest accrues when you borrow. Brokers may charge account maintenance fees, inactivity fees, paper-statement fees, and outgoing transfer (ACAT) fees. Check the broker’s disclosures for a full fee list.

Hidden Costs: Spread, Slippage, and Payment for Order Flow

Bid-ask spread and slippage are implicit costs. The spread is wider in less-liquid securities. Slippage is the difference between expected execution price and actual fill. Payment for order flow (PFOF) may influence routing and execution; brokers should disclose such arrangements.

Settlement, Clearing, and Recordkeeping

Trades are executed and then settled. For most U.S. equities, settlement occurs two business days after the trade date (T+2). After settlement, the buyer receives shares and the seller receives cash. Brokers provide trade confirmations and account statements; keeping these records is essential for tax reporting and calculating cost basis.

If you transfer an account to another firm, ACAT transfers typically take several days and may incur fees. Keep electronic records and download year-end statements for cost basis and realized gain/loss tracking.

Taxes and Reporting

Taxes differ by jurisdiction; the following is U.S.-centric and general in nature. For tax advice, consult a qualified tax professional.

• Dividends are taxable when paid (qualified vs. nonqualified dividend rules affect rates).
• Capital gains tax depends on holding period: short-term (typically taxed at ordinary income rates) vs. long-term (preferential rates for holdings >1 year).
• Tax lots matter when calculating realized gains; brokers provide cost-basis reporting options (FIFO, specific identification).
• Retirement account trades inside IRAs or 401(k)s do not trigger current-year capital gains tax but have withdrawal rules and penalties for early distribution.

Brokers produce Form 1099-B and other tax forms that summarize proceeds, cost basis, and withholding where applicable. Confirm year-end reporting and consult a tax advisor for complex situations.

Risks and Investor Protections

Buying and selling stocks on your own carries risks: market risk (price volatility), liquidity risk (difficulty selling large or illiquid positions), leverage risk (margin amplifies losses), and behavioral risk (emotional trading). Mitigation strategies include diversification, position-sizing rules, stop orders, and written trading/investment plans.

Regulatory Protections and Resources

Regulators and protections include:

• The U.S. Securities and Exchange Commission (SEC) — provides investor education and regulatory oversight.
• FINRA — rules for broker-dealers and tools like BrokerCheck to review firm/rep histories.
• SIPC protection — covers missing assets at a member brokerage up to limits (not market losses). SIPC protects against broker failure, not against investment losses.

Useful resources: SEC investor education pages, FINRA’s guidance on buying and selling securities, and Investor.gov for DSPP/DRIP information.

Tools, Research, and Education for DIY Investors

Platforms typically offer tools to support “can i buy and sell stocks on my own” workflows:

• Screeners to filter stocks by market cap, sector, valuation, and technicals.
• Research reports, analyst ratings, and SEC filings.
• Charting tools and technical indicators for traders.
• Paper-trading or demo accounts to practice order entry without real capital.
• Alerts for price, news, and corporate actions.

Major brokers and investment firms provide learning centers, webinars, and tutorials for new investors. When exploring Web3 or crypto-linked trading, consider using Bitget Wallet and Bitget exchange services where appropriate.

Advanced Topics (for DIY Traders)

If you intend to move beyond simple buy-and-hold, be aware of added complexity and risk.

Margin Trading and Leverage

Margin increases both upside and downside. Familiarize yourself with initial and maintenance margin requirements, and how margin calls are handled by your broker.

Short Selling

Short selling involves borrowing shares to sell now and buy back later. Shorting requires a locate/borrow process and may incur borrow fees; potential losses are unlimited if the stock rallies.

Options Trading

Options are contracts with leverage and expiry. Brokers require options approval levels that assess experience and risk tolerance. Options strategies vary in complexity and risk — from covered calls to naked options (which carry high risk).

ETFs, Mutual Funds, and Fractional Shares

ETFs trade like stocks and offer diversified exposure. Mutual funds transact at end-of-day NAV and may have minimums. Many brokers now offer fractional shares, enabling precise dollar-based investing in expensive stocks.

Best Practices and Safety Tips

For investors deciding “can i buy and sell stocks on my own”, apply these practical safeguards:

• Write a trading/investment plan with clear goals and risk rules.
• Use position sizing and diversification to limit single-stock risk.
• Use limit orders for illiquid securities or when price control is important.
• Keep an emergency cash buffer rather than relying on margin for liquidity.
• Verify broker credentials (SEC/FINRA registration) and review fee schedules.
• Enable two-factor authentication and use strong passwords.
• Beware of scams and unsolicited trading tips; confirm news from authoritative sources.

Beginner's Checklist — Getting Started Today

1. Define goals, risk tolerance, and time horizon.
2. Select the account type (taxable, IRA, Roth) that matches your objectives.
3. Compare brokers on fees, platform usability, research, fractional share support, and customer service.
4. Open and verify an account; fund it thoughtfully.
5. Practice with paper trading or small positions.
6. Learn order types (market, limit, stop) before placing real trades.
7. Keep tax and recordkeeping habits from day one (download confirmations and statements).

If you plan to integrate crypto into your portfolio or want a unified experience for digital assets and stocks, explore Bitget services and the Bitget Wallet for custody and trading features.

Frequently Asked Questions (FAQ)

Q: Do I need a broker to buy stocks? A: For most exchange-traded stocks you need a broker or transfer agent. Some companies offer DSPPs that let investors buy directly without a conventional broker.

Q: Can I trade without paying commissions? A: Many brokers offer commission-free trading on U.S.-listed stocks and ETFs, but other fees or product-specific charges may still apply. Check each broker’s fee schedule.

Q: What happens after I place an order? A: The broker routes your order to an exchange or market maker. You receive an execution confirmation and the trade settles (typically T+2 for U.S. equities). Keep confirmations for records.

Q: How quickly can I start trading on my own? A: Account opening and verification can be same-day to several days depending on identity verification and funding method. ACH transfers may take 1–3 business days; wire transfers are faster but may incur fees.

Advantages and Disadvantages of Buying/Selling on Your Own

Advantages:

• Control over trade timing and asset selection.
• Lower explicit costs compared to full-service advice.
• Faster execution via online platforms and mobile apps.

Disadvantages:

• You forgo personalized financial advice.
• Increased risk of emotional trading and mistakes.
• Additional responsibility for tax reporting and recordkeeping.

Market Context and Timely Notes

As of January 16, 2026, according to Coinspeaker, the Russell 2000 reached a new all-time high, reflecting notable strength in small-cap U.S. equities and an increased appetite for risk among some investors. This backdrop may affect liquidity and volatility for certain stocks.

As of January 15, 2026, Barchart reported technical weakness in March corn futures after a bearish USDA report; agricultural commodity moves can broadly influence related agribusiness stocks and sector sentiment. These market developments illustrate that macro and commodity news can affect stock prices and liquidity, which matters when you decide "can i buy and sell stocks on my own"—because market context influences execution, spreads, and risk.

Note: these references are provided for context and do not constitute investment advice. Always consult original sources and professional guidance for trading or tax decisions.

See Also

• Brokerage account (types and features)
• Order types (market, limit, stop)
• Margin account rules
• Direct stock purchase plan (DSPP)
• Dividend reinvestment plan (DRIP)
• FINRA BrokerCheck
• SIPC protection

References and Further Reading

Sources used to compile this guide include educational materials and regulatory pages from major brokerages and regulators, including Investopedia, FINRA, the SEC/Investor.gov pages on DSPPs/DRIPs, and broker guidance (Vanguard, Charles Schwab, Fidelity, E*TRADE, Merrill). For current fee schedules and account terms, consult broker disclosures directly.

Final Notes — Next Steps

If you’re convinced "can i buy and sell stocks on my own" and want to try, start small: open a taxable or IRA account, fund a modest amount, and place a few practice trades or use a paper-trading mode until you’re comfortable. If you’re exploring crypto alongside stocks, consider Bitget Wallet for custody and Bitget’s trading services to manage both equities-style and digital-asset activity through a single ecosystem. Learn, practice, and protect your account credentials — that combination is the foundation of responsible DIY trading.