Investing My Money: How to Buy A Stock? – Area of Expertise – Improve Your Financial Health

 

Good afternoon!

Over the last few posts I’ve talked about what actions are and how to make money from them. If you missed last week, here it is,

 

Today we are going to practice and finally buy some stocks. I’ll show you how to find a stock broker, open an account, deposit money and buy.

In today’s post I will use as an example four brokerages: Easynvest, Modal, Rico and XP Investimentos .

Although I do not use here as an example, they say that Clear Broker is a good broker for traders (that is, think of trading frequently). However, I think it is not very intuitive for beginners.

Anyway, come on!

# 1: Find a Brokerage

# 1: Find a Brokerage

First of all, it’s worth a lot to read in the 2nd post of the series, where I do this same step by step, but for Fixed Income (click here). There we took a close look at the country’s leading brokerages.

As it is recommended that you do not put all your investments in Variable Income, I think starting by taking a look over there is useful. Also, I gave some general tips that you will like.

Unlike Fixed Income, however, I recommend that you focus all of your Variable Income transactions on a single brokerage. Each brokerage has a system, and it is important to get used to using it when you are going to trade stocks.

Obviously every search starts with Google. Whenever you find a result there or receive some friend indication, check the following conditions:

Does the brokerage exist?

All securities brokers must have authorization from the CVM (Comissão de Valores Mobiliários) to operate. On the BM & FBovespa website there is also a broker search tool, which can be accessed by clicking here.

That is, if you are not in the above links, it is not reliable.

Brokerage Fee

It is the fee charged per transaction (buy or sell) that you make. Especially when you operate with small or very frequent values, it makes a lot of difference in your profit.

See rates at the following links: Clear , Easynvest, Modal, Rico, XP.

Among these 5, Clear is the one with the lowest brokerage rate (R $ 7.50) for normal operations (also called swing trade ), followed by Modal (R $ 8.99). Modal, however, has a special plan for college students, where this brokerage drops to $ 4.99!

Custody Fee

It is the rate that the brokerage company charges to keep the register of its investments. One note: the custody of your investments is made by the BM & FBovespa Stock Exchange (former CBLC). So even if the brokerage firm fails, your actions will be safe in your name.

The rates are on the same links: Clear , Easynvest, Modal, Rico, XP.

Of the 5 above, the cheapest is the Modal (zero rate). However, other 3 brokerages can also give you zero rate if you operate at least twice a month (Rico) or three times a month (Easynvest and XP).

Money Redemption Rate

Some brokerages charge you when you will redeem your money from the brokerage house and transfer it to your bank account. This is the case of XP (R $ 8.90) and Modal (R $ 2.00 in the “Free” plan, R $ 7,00 in the “University”).

Easynvest and Rico do not charge this fee.

I did not find this information on Clear.

Will you operate by cellphone or computer?

If you’re going to want to trade a bit more often, but you know you will not have a computer nearby, check which brokerage has a mobile app that suits you best. It pays to download some apps on your phone and see which ones you like the most.

All listed brokerages have applications for operating variable income.

# 2: Open the account

# 2: Open the account

 

By clicking on any of these buttons, fill out the registration form. Some brokers may request a copy of the RG, CPF and Proof of Residence (less than 3 months). So, it is interesting to scan these documents and already leave prepared on your computer.

In addition, they may ask you to sign a membership agreement (such as Modal). In this case, just print, sign, scan (or take a photo with good resolution) and send it through the site. It is not necessary to go to the post office or any of that, it is possible to do everything online. (But if you are old school and want to send by post, nothing prevents you).

Within a few hours or a few days you will receive confirmation emails with your CBLC code (a 6-digit code) and deposit information. Again, I recommend you take a look at the tips of the 2nd post in the series!

# 3: Deposit Money

# 3: Deposit Money

That part is the one that generates greater mistrust. Natural, but stay calm: that’s the way it works. You have to make a transfer (a TED) from your bank account to the broker’s account.

Brokerage firms usually send this data by email and they are also easily available on the website after you open your account and log in.

Anyway, there are the links: Easynvest, Modal, Rico, XP.

# 4: Buy it!

# 4: Buy it!

Finally!

Open your HomeBroker (or any other name the brokerage gives to the trading platform) and go there to make your purchase. In the example we will make a purchase of 100 shares of Cielo (100 CIEL3). Cielo, that card company.

One note: Why just 100? Because 100 (usually) is the standard lot. That is, the market generally operates in lots of 100 out of 100 stocks.

If you want to buy or sell “broken” securities, you will have to buy these shares in the fractional market. This market is much less liquid, and I do not recommend it, but if you still want to trade there, just type an “F” after the action code. Thus, ó: “CIEL3F”.

Easynvest

 

Variable Income> Investing: You will enter the Easynvest trading platform.

 

There you type CIEL3 in the box of offers (box to the left) and see how the offers so. As you can see, the best offer to sell is $ 32.73. So if you want to buy now, just put that value.

You can put a lower value too, nothing prevents. But you’ll have to wait for a seller to accept your offer to buy.

So, on the purchase ticket (box on the right), enter the asset (CIEL3), quantity (100) and price (32,73). Total is displayed. Just place your electronic signature (an 8-digit numeric password that you must have already registered) and click submit.

Ready! Check if the order has even been executed. If so, within 3 business days, the share will be in your account.

Modal

 

As always, a popup will open! Put the modal in the exceptions list.

 

The modal equities trading platform is ugly that hurts, but there it is. The scheme is the same: see the sales offers, enter the asset name (CIEL3) and enter the purchase quantity and the Price.

Enter your password (digital signature) and click buy. Ready! Make sure the order has actually been executed. If so, within 3 business days, the share will be in your account.

Rich

In the rich there are two ways to buy. The first and simplest is by clicking on Investments> Stocks.

 

A page with recommendations will appear.

If you scroll down the page, a purchase ticket will appear! If the “best offer” box is checked, the price of the best offer for sale already appears automatically. Then just put the amount and click send.

 

The other, less simple yet complete way is to go through the Home Broker.

 

Click the orange button above. As in the other brokerages, a new window will open. Go there in the menu, click on the quotes box.

 

Enter the asset code

 

Click on that blue “← C” below.

 

You will open a purchase slip. Check out the price and quantity. Click Submit. Enter your electronic password and confirm!

 

XP

 

I do not even need to explain, right. Go there in Home Broker, in the upper right corner, golden.

 

It will pop up. If it is blocked, click on the bar to unblock it and click on the link.

 

Similarly, enter the company name in the quotation box. Then click “Buy.”

 

A purchase slip will be opened. Enter the parameters of your order (price, quantity).

In the example, I placed a lower purchase price than the best offer. What is going to happen? The order will not be executed immediately, we will have to wait for a seller to give a sales order in that amount.

That is why there is that “validity” field, where you can choose how long your order will wait for a seller.

Put your electronic signature and click submit. Ready!

Conclusion

Conclusion

I confess that it is not superintuitive, but it is also nothing out of this world. The most annoying of course is to register and set your login and electronic signature passwords. But after that, you have tooodo the site of a brokerage at your disposal, full of tools to know.

Of all of them, Easynvest trading platform was the one I found easier and more beautiful, and Modal the cheapest. Rico has a cool website (though Home Broker is more or less), and XP is the largest independent brokerage in Brazil. In any case, the principle of all of them is always the same:

  • Decide which company you are going to buy
  • See how the market is (the buy and sell orders)
  • Enter quantity and price
  • Confirm with Electronic Signature and pimba! Purchased stock
  • In 3 business days she will be in your custody

And that’s it!

Questions, suggestions? Are there any themes you want to hear from us? Do you have any good brokerage tips? Did not like any? Talk here to us in the comments!

A hug and until next Tuesday!

 

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