The exchange, before admitting to its trading floors, licenses brokers, management companies, or specialized departments of banks. The exchange does not work directly with individuals. Therefore, the account necessary for the future investor for his further operations is opened at a company licensed by the exchange. When choosing a broker, the same criteria are important as elsewhere: price — quality — opportunities. That’s why it is not enough to read Trading broker reviews.
First, you should be interested in if the company has a brokerage license. Choosing an “exchange intermediary” online, there is a risk of coming across a company which has no license, but merely imitates transactions. The brokerage license serves as a guarantee of the legality of operations made by the legal entity. If you want a proven broker with a current license, read letizo news.
A broker must be reliable
It is important that the broker has at least 10 years of “experience”, is included in the ratings of brokers, and has a rating assigned by one of the rating agencies.
Scale of broker’s activity
The volume of client operations, the number of registered and active users — also open information.
Convenience of work
Trading operations at almost all brokers are available through a mobile application in the personal cabinet or on the trading terminal. You will have to study them on your own — unfortunately, there are no clients, who would simultaneously use the services of all companies and could recommend the best one. But there are numerous evaluations, reviews and reviews of programs and applications on forums. If you have been searching for a broker for convenient trading, read BlackBull Markets Review.
List of services
It is important to choose which broker services you need and which ones will be an unnecessary financial burden and reduce the profitability of your operations. Thus, you may decide well in advance whether you want a broker that works with a wide range of currency pairs or only with dollars and euros.
Cost of services
Consider that the high status of the broker does not guarantee the most favorable conditions, and often it is even vice versa — it implies additional expenses. In general, you should carefully read the price list.
Keep in mind that with speculative behavior, many transactions are made, and, therefore, the commission for each transaction comes first. If you want to buy several blue chips for several years, the cost of the transaction almost loses importance and the subscription fee becomes important.
A private person should know that in certain situations a brokerage account can be blocked. Such a “penalty” is possible if:
- The client fails to update the questionnaire data on time. Recall that this must be done at least once a year.
- There is a corresponding court decision.
- There were suspicious transactions on the account.
- The customer lost his personal documents or his password or login has been compromised.
Your personal data
Some words about application form and personal data. You can apply for a brokerage account in the company’s office or online.
Naturally, when sending their personal data to the next intermediary, citizens are afraid of possible leaks. The reasoning behind this extensive request of personal information is that the list of questions in the questionnaire is determined by the norms of special legislation — tax, securities market and anti-money laundering laws.
The US stock brokers, as well as the banks, traditionally ask for their consent to process personal information when filling out the questionnaire. Note that after the termination of the relationship or a change of broker, it would be correct to demand that all personal data be deleted in writing.