Hello again learners! Liam here. I am ready to buy my first stock. I have the money in my hand, and I want to walk into the stock market and buy a piece of a company. Can I just go to the Tadawul or D F M building and hand them cash?Absolutely not, Liam. Welcome back, everyone. Today we are learning the mechanics of how to actually trade. You cannot walk into the exchange yourself. You need a middleman. In the financial world, this middleman is called a Broker. Think of the Broker as the bridge connecting your wallet to the stock market. Without them, you cannot cross.Hi everyone! I am Maya. Choosing a broker is like choosing a car. Do you want a solid, reliable truck, or a fast, sleek sports car? In the Gulf, we generally have two types of brokers. First, you have the Bank Brokers. These are the brokerage arms of the big banks, like S N B Capital, Riyad Capital, or E N B D Securities. The pros? They are trusted, and because they are linked to your bank account, transferring money is instant. The cons? Their apps can sometimes feel a bit old fashioned, and their fees might be higher.I like the sound of instant transfers. But I also like cool apps. What is the other option?Greetings! Chloe here. The other option is the Fintechs, or Neo Brokers. These are modern apps like Baraka, Thara, or Sarwa Trade. They are very popular with younger investors because they are easy to use, often have lower commissions, and give you access to both local and U S markets in one place. However, funding these accounts might take one or two days if you are transferring from a different bank. You have to decide what matters more to you: convenience or cost.Once you pick a broker, you have to open the account. And this is where our regulations come in. You cannot be anonymous. In the U A E, you must have a National Investor Number, or N I N. If you use a Bank Broker, they usually create this for you automatically. If you use an app, you might need to apply for it through the D F M app first. In Saudi Arabia, your National I D or Iqama is the key, and you verify everything through Absher. This process is called K Y C, or Know Your Customer. It keeps the market safe from money laundering.Okay, I have my N I N, and my account is open. Now, how do I put money in? I do not want to carry cash around.Funding is actually very easy now. In Saudi Arabia, the most common way is using S A D A D. You just go to your bank app, select the S A D A D bill payments, and pay your broker. It is fast and secure. In the U A E, if you are using a local broker, you can do a direct bank transfer using the I B A N they give you. Some brokers even issue an iVestor card, which is a pre paid card that holds your trading cash and your dividends. It works just like a debit card!Awesome. Money is in. Now I see a big “Buy” button. But when I click it, it gives me options: Market Order or Limit Order. Which one should I click?This is a critical lesson, Liam. Listen carefully. A Market Order is you saying, “I want this stock right now, I do not care about the price!” It is fast, but risky. If the price jumps up suddenly, you might pay more than you expected. A Limit Order is you saying, “I want this stock, but only if the price is fifty riyals or less.” It is safer because you control the price, but if the stock never drops to fifty, your order might not happen. For beginners, we usually recommend Limit Orders so you do not get any nasty surprises.And for many of us in the region, there is another button to look for: the Sharia Filter. Many apps now have a toggle switch that filters out non compliant companies. If you turn this on, the app will hide companies that sell alcohol, pork, or gambling services, and also banks that deal in interest. It makes it very easy to ensure your investments align with your values. Just remember, even compliant companies might have a small amount of non compliant income, which you are encouraged to Purify by donating a tiny percentage of your dividends to charity.That is really cool technology. I can invest ethically with just one click. Now, before we go, my cousin added me to a WhatsApp group where a “Guru” promises that a certain stock will go up one hundred percent tomorrow. Should I listen to him?Stop right there, Liam! That is a huge red flag. That is called a Pump and Dump scheme. Scammers buy a cheap stock, then tell everyone on WhatsApp or Telegram to buy it so the price goes up. When you buy, they sell their shares and run away with the profit, leaving you with a worthless stock when the price crashes. Never, ever take financial advice from social media groups. Only trust your own research and licensed advisors.Also, remember the market hours. The Gulf markets work from Sunday to Thursday, usually opening around ten in the morning and closing around three in the afternoon. If you try to trade on Saturday, the market is closed! Respect the schedule, respect the rules, and ignore the rumors.Got it. Broker first, N I N second, funding with S A D A D third. Use Limit orders, filter for Sharia if I want, and block those scammy WhatsApp groups.You are becoming a real pro, Liam.Next time, we will talk about how to actually read a stock chart and what all those numbers mean.See you then, learners. Happy trading!
