Establish online trading account
Register with an online stock trading site. Some of the more popular options include E*Trade, Scottrade and Sharebuilder, but there are dozens more that are legitimate. Before registering, however, check with the Better Business Bureau to make sure you are dealing with a legitimate company. During the registration process, choose the type of account that operates similar to a checking account, into which you deposit money for buying stocks. Once the account is open, make note of the account information, routing number, and name and address of the trading company. Keep this information filed away safely.
Register and verify account with Paypal
Log in to your Paypal account and choose the option to add a bank account. Add your account information for your stock trading account the same as you would a regular checking account. Choose the option to verify the account. Paypal will make two or three small deposits into the account. This may take a few days, but when the deposits show up, log in to Paypal and complete the verification process.
Fund accounts and purchase stocks
Add funds to your Paypal account, or use funds that are already in your Paypal account, and direct Paypal to transfer them in to the trading account. This also may take two to three days to complete. Once the transfer is complete, you are ready to begin purchasing stocks.