Stockbrokers serve as an intermediary that connects clients to the trading platforms. It helps you execute trades by exchanging different financial instruments like stocks, bonds, commodities, etc and works in association with NASDAQ, FINRA or NYSE. TD Ameritrade has ranked in the top position for the best broker 2019 for beginners. It starts with a minimum account balance of $0, charging $6.95 for Stocks, ETFs and $0.75 for trading options.
You can also go for E*Trade with a minimum account opening balance of $500; Merril Edge, Charles Schwab, and Fidelity with an opening balance of only $0. So, if you are new in the world of investment; follow these 5 tips provided by the stockbrokers.
Research on Brokers
Generally, two types of brokers exist – the Regular brokers who interact with you directly for trade execution and the Reseller brokers who serve you indirectly through larger brokers. The regular broker is further subdivided into two parts – full time and discount broker. While full-time broker provides you full investment assistance; they are quite expensive. Discount broker, on the other hand, charges lower commission fees but provides no investment advice.
Check Broker background
Search the broker name in Google to get his/her official site. Read all the information on the website thoroughly; check its online reviews by the existing users; search for the pros and cons by typing in Google; etc. Do all kinds of investigation to know what you are getting into. If you are using brokerage applications, check the Play Store or App store reviews of maximum users and also ratings.
Brokerage fees vary for different platforms. Check for the minimum account balance opening, the margin trading interest rates, and the withdrawal fees and procedure. Some allow you free withdrawal, while some charge extra and those with high balance allow cheque withdrawal only. Make sure your selected brokerage platform that is transparent in terms of fees and suits your investment style.
Proper Customer care service
Your selected stockbroker should have a 24×7 customer service. If it does not have one or no one receives the call, go for another one. Unless you select a full proof broker with high brokerage fees, you will need a lot of advice for the beginner level trade execution. A proper customer service shows the site is trustworthy and also helps you with your instant queries and issues.
If you are only interested in Stock trading, faculties might not be important for you. But, if you want to diversify by trading with different financial instruments, you can check if the trading platform is providing those facilities or not. Also, make a point to check if you can easily link your account with the brokerage platform and if it provides user-friendly and fast withdrawal facility.