How to Pick the Right Stockbroker for Beginners
I want to talk about how to choose the right stockbroker because before investing in the stock market you need to be able to buy your stocks.
You’ll have to sign up for a trading account from a stock broker so you can use that account to buy and sell shares and manage your portfolio.
But the thing is there are a lot of stock brokers out there and maybe you have no idea of which one is the best for you and your trading needs.
Some stock brokers offer very good service. While some are lousy and they come up with many hidden fees.
So I think the most valuable information for you is how you can find a good stockbroker who can help you make your investments.
There are three important criteria that I always use to determine if a stock broker is good for me and my trading needs.
The first thing they must be reliable.
Remember, when you use a stock broker you’ll have to deposit your money into their brokerage account.
And this simply means that they’ll keep your money and help you make investments on your behalf.
So when you give someone your money they must be reliable and trustworthy.
If you can’t trust them how dare you let them keep your money. When it comes to trading, having peace of mind is very important because the market can be hell sometime. If you’re worried about your principle funds too, because you can’t trust your stock broker then that will again make things far worse.
That’s because trading is very stressful especially when you’re a beginner.
How can you make a good trade when you keep worrying about whether your money is safe.
So first of all you must start with a reliable stockbroker.
Do some research and list all stock brokers in your country.
Find out the most popular and reliable ones and eliminate all brokers that have many bad reviews and testimonials.
Always stay away from cheap and unreliable brokers.
Many first time investors look for cheap brokers because these brokers offer low trading fees, but they don’t understand that low cost simply means low quality services.
You’ll get what you pay for.
You see cheap brokers are consistently lowering their fees in order to attract more customers and gain market share.
Some even offer free trades. They offer you a low trading fee but they’ll charge you for accessing high level market data, and they’re trading software, and they often have a low quality customer service.
There will be a lot of hidden fees and you’ll get what you pay for.
So make sure you always stay away from cheap and unreliable stockbroker’s.