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Buying stocks is a risky game, but some ways of financing your stock purchases are less risky than others. You can invest using a credit card but as our mothers once told us, “just because you can do something doesn’t mean you should.”
Buying stock with a credit card can add risk to an already risky transaction, but credit card rewards may make it worthwhile. Be sure to do your research and consider the risk-reward proposition before making a financial commitment.
How To Use My Credit Card to Buy Stock
Understandably, brokerage firms prefer you fund your brokerage account using bank transfers or checks. These methods are often more straightforward and more secure for the investor. If you do decide it is worthwhile to buy stocks with your credit card, you will likely have to route your money indirectly to land it in your brokerage account.
With the Stockpile app, you can buy fractional shares using gift cards, which have a wide range in value starting at $1 and going as high as $2,000. You can buy a Stockpile gift card with credit and then redeem the value on the card for purchasing stock shares. Stockpile allows a maximum purchase of $1,000 per day and $2,000 annually with a credit card. Again, be sure to calculate beforehand what your actual gain will be after the fees incurred. Whatever…
