How do I find a broker?
Picking a broker is mostly premised upon your investing style. Nowadays, the number of brokers in the market is extremely competitive and there are many options that individuals have in terms of choosing one.
The factors that you should consider are:
- Costs and Fees: observe how much trade execution and brokerage fees are for your given frequency, style, and market
- Minimums: consider the amount of money you wish to place in your account and what the minimum amount brokers require you to keep in your account, to trade, etc.
- Withdrawals: keep in mind that many brokers will require you to pay an additional fee when you make a withdrawal or block if altogether if you balance falls below their required minimum
- Margin Account/Potential Interest Rate: if you are interested in opening a margin account, keep in mind that there may be a higher minimum balance required and frequently have an interest rate when you have your broker make a trade on margin
Many brokers make it difficult for prospective traders to actually find out how much their fee structures actually are. Just like everything else, remember that if something is too good to be true, then it probably is. Read the agreement and account statements to make sure that you will not be charged additional hidden fees.