Stock Market Broker- How to Get the Right One

You will not be able to start trading without the services of a stock market broker. Even if you want to control all of your decisions, you still need a broker to place trades for you. This is why you should spend a fair amount of time in your search for a brokerage company. Four points should come to mind when you are about to make your pick.

Commission Rates

How much is a brokerage service asking you for their work? You can pretty much get a figure straight from them without having to go through loops. A service provider will tell you right away just how much they go for. Expect a figure to fall at around $40 to $100. There is a price difference among brokers mainly because they offer different service features. Full service outfits typically ask for a lot more because they give out advice and information on the market that you might be able to use before you trade. It’s only right that you get slapped a high price. Keep in mind though that if you have a trading system in place, you may not need that extra help.

Extra Fees

Commissions aren’t the only expense involved in trading. You also need to pay a handful of fees. Unfortunately, some of these are hidden so you only get wind of them once a brokerage firm starts asking you to pay. Make sure from the very start that you ask what additional fees there are and how much these will cost you. Depending on the stock market broker that you pick, you may have to pay for transfer fund charges, insurance and penalties. If you get a full service provider you will have to pay extra for insider tips or advice.

Service Reliability

Not all services place trades in real time and not all of them offer different ways to place trades. You may be at a disadvantage if you opt for manual services that don’t have backup systems for indicating your preferences. These are simply too unreliable. If a system glitch affects the primary portal to access your accounts, it may take hours or even days for you to act on a dwindling account. Also, manual stock market brokers can take time to act on your wishes which means the entry or exit point that you’ve identified may have already been missed by the time action is taken.

Minimum Deposit Requirement

These days you can open a start up account with discount services for $100. Most well known, full service providers however require minimum account balances of around $10,000 to $50,000. Of course, the more you invest, the more you can expect huge profits in the event that you do pick the right positions. Do keep in mind though that opening an account, with thousands of dollars at stake, increases your investment risks. You will, after all, be entrusting your cash to a company you may know very little about.

The stock market broker that you eventually settle on can help make or break you. Even if you have a strong background in technical analysis and a tried and tested trading system, you will still fail with a bad broker.

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