It is possible to buy stock without a broker. If you are interested to do it, here are 3 ways to buy stocks without a broker.
1. Investing in shares through a companys direct stock purchase plan
Direct stock purchase plan (DSPP) is the first and also the easiest method to buy stock without a broker. Generally, this plan was conceived to let smaller investors buy ownership directly from the company.
Using the plans, the investors need to agree to have a reasonable amount taken out of their checking or savings account every month for, at least, six months. The acceptable minimum amount for that is often $50.
Other than that, the investors can also make a one-time purchase, usually, it is around $250 or $500.
Usually, the plan administrators will let the investors buy the companys shares on the open market from the cash they have batched before.
2. Taking advantage of the dividend reinvestment program to increase your shares
Dividend reinvestment program (DRIP) allows you to take cash dividends paid out by the company you own and plow them back into buying more shares.
Depending on the specifics of your individual plan, it can be free or charge you with nominal fees.
DRIPs are often coupled with cash investment options that resemble direct stock purchase plans. Thus, you can regularly have money withdrawn from your checking or savings account, or send in one-time payments whenever you want it.
3. Acquiring a single share through a special gifting service
Some company allows you to buy a single share of stock and get your name on a corporate shareholder list. Sadly, in the financial industrys decision to move away from paper certificates has become untenable.
So, you either need a broker or relation with the companys asset management to have. Therefore, this way is not as popular as the other two ways mentioned above.