How to Invest in the Stock Market
There are many ways to invest you money. One of, if not the, most common ways to invest is by investing in the stock market. For those who are unfamiliar, companies can be owned by the public (people like me and you). The stock market is where regular folks can buy and sell shares (or partial ownership) of a company.
Investors make money one of two ways: Capital appreciation, where you buy shares of a company, the value of your shares increase, and you sell at a gain; or via dividends, where the company distributes part of their profit to their shareholders (owners).
The benefit of investing in the stock market? It’s about as easy to invest as anything you could do. So, here’s how you get started.
HOW TO INVEST IN THE STOCK MARKET USING SOFI INVEST
Step 1: Create Your SoFi Account
Go to SoFi
Click “Get Started” or “Join SoFi”.
Create an account using your email and password.
Verify your identity (you’ll need your SSN, address, and date of birth).
Choose your account type:
Active Investing (you pick your own stocks and ETFs)
Automated Investing (SoFi builds and manages a portfolio for you)
📝 Tip: Most beginners start with Active Investing to learn the basics, or Automated Investing if they want a hands-off approach.
Step 2: Fund Your Account
Link your bank account.
Transfer money (you can start with as little as $5).
Wait for the funds to settle (usually 1–2 business days).
Step 3: Choose Your Investment Approach
SoFi gives you two main paths:
Buy individual stocks or ETFs: Search for companies like Apple, Tesla, or ETFs like S&P 500 Index Funds (e.g., VOO or SPY).
Use fractional shares: You can invest small amounts (e.g., $10) in any stock — great for beginners.
Explore SoFi’s curated lists: They offer themes like “Top Tech Stocks” or “Socially Responsible Investing.”
Step 4: Place Your First Trade
In the app or desktop dashboard, tap “Invest” → “Active Investing.”
Use the search bar to find a stock or ETF.
Click “Trade” or “Buy.”
Enter:
Amount you want to invest (can be a dollar amount for fractional shares)
Order type (choose “Market” for beginners — it buys at the current price)
Tap “Review Order” then “Submit.”
Step 5: Track and Adjust
Check your Portfolio tab to view gains, losses, and dividends.
Turn on Auto-Invest to schedule regular contributions.
Reinvest dividends automatically to grow faster.
Use SoFi’s free financial planning tools for insights.
🧭 Goal: Keep investing regularly — even small amounts — and focus on long-term growth, not short-term fluctuations.
Step 6: Continue Learning
SoFi offers:
Free financial advisors (for Automated Investing users)
Educational resources and market news
A community feed to see what other investors are discussing
HOW TO INVEST IN THE STOCK MARKET USING CHARLES SCHWAB
Step 1: Open a Schwab Account
Go to schwab.com/open-an-account.
Select your account type:
Individual Brokerage Account (most common for beginners)
Roth IRA or Traditional IRA (for retirement investing)
Complete the online form with your personal information.
Verify your identity with your SSN and ID.
Create login credentials.
Step 2: Fund Your Account
Link your bank account.
Transfer funds (no minimum for most accounts).
Funds are typically available within 1–2 business days.
Step 3: Choose What to Invest In
You can invest in:
Individual stocks (like Apple, Amazon, or Coca-Cola)
ETFs (exchange-traded funds like SCHD, SPY, or VOO)
Mutual funds (Schwab has many with $0 transaction fees)
💡 Tip: Schwab’s Stock Slices let you buy fractional shares for as little as $5 per company — perfect for beginners.
Step 4: Research Before You Buy
Use Schwab’s built-in tools:
Screener: Filter stocks/ETFs based on performance or sector.
Analyst ratings: Shows how experts rate a stock (buy/hold/sell).
Learning Center: Free beginner courses and videos.
Step 5: Place Your First Trade
Go to your Account Summary page.
Click “Trade” → “Stocks & ETFs.”
Enter:
Ticker symbol (e.g., AAPL for Apple)
Action: Buy
Quantity or Dollar amount
Order type: Choose “Market” for a quick purchase
Click “Review Order” → “Place Order.”
Step 6: Track Your Portfolio
Go to the “Positions” tab to see current holdings.
Use Alerts to track price movements.
View Performance Reports for your returns over time.
Consider enabling Dividend Reinvestment (DRIP) for compounding growth.
Step 7: Keep Building Your Strategy
Schwab offers:
Free financial planning tools
Automatic investing options
Fractional investing (Stock Slices)
Access to professional advice if you want one-on-one guidance
📈 Goal: Contribute regularly, diversify across multiple assets (stocks + ETFs), and hold long-term for compounding returns.