How to choose a broker: tips for beginners
You have chosen to put resources into protections - this implies that you can't manage without a dealer: as per the law, you can't exchange on the stock trade without a go-between. Exchanges must be finished up by legitimate substances that have a financier permit - banks, speculation and business organizations. We will reveal to you how to pick a dependable and reasonable representative.
What does a broker?
A broker executes orders to conclude transactions on the exchange, draws up reports on operations and movement of funds, calculates and transfers taxes on profits. The broker also develops investment and trading strategies, forms asset portfolios, offers the services of a personal financial advisor.
What do you expect from a broker
Think about why you need a broker, except for formal access to the exchange. Do you want to invest for a long time or engage in trading? Manage assets on your own or give them to trust, forgetting about the hassle? What will you invest in and what markets will you enter? It is better to choose a broker with a clear understanding of your goals.
What to look for
Legislation strictly regulates brokerage, and any unauthorized dealing with clients' assets is subject to criminal liability. It is not profitable for large brokers with a long history and serious turnover. Study the rating, and at the same time the statistics (the volume of client operations, the number of registered and active users).
Check available markets. If you want to invest in foreign markets, find out what assets the broker has access to.
The dealer procures commission on the measure of the exchange, and relying upon from the tax, the size of the commission will be unique. Merchants can likewise take a commission for saving and pulling out reserves, utilizing the exchanging stage, voice requests to finish an exchange, etc. A few agents may have a base required commission or membership expense - ensured income even without exchanges. If you plan to keep a small amount on your account, then it is better to choose a tariff with a commission from the transaction, otherwise you can lose a significant part of the funds on the subscription fee. The exchange commission, as a rule, is already included in the tariff.
Deposits and withdrawals of funds from brokers occur in different ways. Usually, you can replenish your account in cash at the cash desk, transfer from an account of another bank for this, a commission is usually charged), and from some brokers and from a brokerage card. It works like a debit one, and you can transfer money from it to a brokerage account without a commission. As a rule, no commission is charged for withdrawing funds in rubles, and the commission for withdrawing currency depends on the tariff.
By concluding an agreement with a broker, you automatically conclude an agreement for depository services for securities. A depository is a virtual repository where information about securities is in the form of a cipher. Depository services can be included in the payment for the broker's services or be a fixed amount per month. And they may change depending on the number of securities at the end of the trading day.
On the broker's website, in the information disclosure section, you can clarify whether there have been precedents with the revocation or suspension of the license. There is also data on financial statements, information on litigation and technical failures.
If you are new to the securities market, you will need a little educational program on this topic. Many brokers offer webinars, seminars, and personal consultations. Classes can be paid or free, sometimes brokers arrange promotions and give paid classes.
1. Before choosing a broker, think about what you need it for, besides the obvious one - access to the exchange.
2. Look at the levies: changed ones are reasonable for various purposes. What's more, the size of the commission relies upon the decision of the duty.
3. Free preparing is a pleasant reward on the off chance that you are a fledgling.