Instruction-comparison for beginners
It should be noted right away that reading only trading broker reviews is not enough for choosing a broker.
Who is a broker in simple words
Legal entities and individuals cannot trade at the exchange directly, if they are not professional participants of the market. For this purpose they need an intermediary – a broker.
How to choose a broker
The main points an investor should consider before concluding a contract with a broker.
The most important thing any broker should have is a license. This is a prerequisite, without which the broker has no right to conduct operations at the exchange.
Reputation and Reliability
A broker, as well as any financial organization can go bankrupt. Or lose their license. To avoid problems, contact a trusted broker. You can also pay attention to the broker’s position on the stock exchange.
In addition to dry numbers, you can read reviews. Look for channels and blogs where real private investors discuss brokers. Look online to see if the broker has had any financial difficulties or major scandals on the eve.
Each broker offers different rates. Before you open an account, decide which one is best for you. To do so, decide for yourself on what markets you plan to trade: stock, futures, over-the-counter or all of them at once. How often you want to make transactions. If you are looking for favorable rates, read the BlackBull Markets Review.
There are mandatory fees that a broker charges an investor regardless of the volume or number of trades, and there are those that are directly dependent on how you behave in the market.
Here are the main fees:
- Brokerage account maintenance fees;
- Custody services fee;
- Transaction fee;
- Commission for depositing and withdrawing money;
- a fee for submitting orders over the phone;
- Leverage fees, i.e., when you borrow money or securities from a broker.
Availability of Markets
Research which financial instruments and markets are available at the broker. Decide what you mainly intend to trade.
Convenient application and service
To trade on the stock market, you will need a trading terminal. Almost all major brokers now offer mobile trading apps. Apps often have demo access. Download and see how you are satisfied with the interface and whether the service is convenient to use.
Ask your broker if it is possible to deposit your account from different bank cards and withdraw to any card. If the brokerage services are provided by the bank, the bank may restrict this function or add a commission. If you are looking for a profitable service, read the etoro broker review.
The last point that you can additionally look at when reading US stock brokers reviews is the training materials. Go to the website or see if the broker runs courses or a blog. Blog materials are usually free. They will help novice investors better understand the stock market. Courses may be canceled for a fee.