How to trade IPOs and stocks

A broker is the regulated firm that gives you access to stock exchanges. Pick one that supports the exchanges where the IPOs you care about will list (NYSE/Nasdaq for US, LSE for UK, Euronext for EU, HKEX for Hong Kong, ASX for Australia, and so on).

What to compare

• Regulation — e.g. SEC/FINRA (US), FCA (UK), BaFin (DE), ASIC (AU). Avoid unregulated platforms.
• Markets — does it offer the exchanges you want? Many cheap apps are US-only.
• Fees — commission per trade, FX conversion spread, inactivity fees, withdrawal fees.
• IPO access — most retail brokers only let you buy after the stock starts trading. A few (Fidelity, SoFi, Robinhood, Freedom24, IBKR) offer pre-IPO allocations to qualifying clients.
• Order types — limit, market, stop-loss. Useful brokers offer all three.

Popular brokers by region

Brokers are required by law to verify your identity before you can trade — this is called KYC (Know Your Customer). Expect to spend 10–30 minutes on signup and anywhere from a few minutes to a few business days for approval.

What you'll typically need

• Government photo ID — passport, national ID card, or driver's licence.
• Proof of address — recent utility bill, bank statement, or council/tax letter (usually < 3 months old).
• Tax identification number — SSN (US), NI number (UK), tax ID / TIN (EU), TFN (AU).
• Bank account details — for funding and withdrawals. Most brokers require it to be in your own name.
• A selfie or short video — many brokers use automated face-match against your ID.
• Employment & income info — required by regulators to assess suitability.
• Trading experience questionnaire — a short quiz to confirm you understand the products.

Once approved, transfer money in before you can buy anything. Common funding methods:

• Bank transfer (ACH, SEPA, Faster Payments) — usually free, takes 0–2 business days.
• Debit card — instant but some brokers charge a fee.
• Wire transfer — fast for large amounts; flat fee typically applies.
• Currency conversion — if you're funding in a different currency to the stock you want to buy, watch the FX spread. It's often the biggest hidden cost.

Search for the company by name or ticker (the short symbol — e.g. AAPL for Apple). Then choose your order type:

Trading a brand-new IPO

• Opening price is usually volatile — wide spreads and rapid swings in the first minutes.
• Use a limit order, never a market order, on listing day.
• Some brokers have a short trading halt before the first print — don't panic if your order sits unfilled.
• Lock-up periods (typically 90–180 days) often see insider selling — be aware of the dates.

• Never invest more than you can afford to lose — especially in IPOs, which are inherently speculative.
• Stick to companies or markets you actually understand and have time to follow.
• Understand fees and taxes — capital gains tax applies in most jurisdictions.
• Keep records — many countries require you to report every trade at tax time.
• Beware scams — no legitimate broker will contact you out of the blue with 'guaranteed' IPO allocations.

Buying an IPO at the offer price (before it starts trading) is different from buying it on the open market once it's listed. Pre-IPO allocations are usually reserved for institutional investors, but a few retail routes exist:

• US: Fidelity, Robinhood, SoFi, and Webull occasionally offer retail allocations on select deals — eligibility varies.
• UK/EU: Freedom24, PrimaryBid, and a handful of brokers list selected IPOs ahead of trading.
• Spread betting / CFD brokers: offer 'grey market' speculation on IPO valuations — high risk, not actual share ownership.
• Most IPOs you'll see on Frank Parley will simply be available to buy on the open market on day one — that's the typical retail path.

When you pull up a ticker on your broker or on Frank Parley, you'll see a block of numbers like the one below. Here's what each line actually means.