Matthew Chandler 27 / March / 19

How to choose the right broker?

5 steps about how to choose an honest broker

 

Each trader knows that there are two ways to trade on the stock exchange - by himself or by trust. This method is chosen by those who do not have the time or sufficient knowledge to take the investment themselves. Many people want to have a manager, and choosing the right broker is one of the key questions of trading, an active successful trade. The broker's professionalism will directly affect the results of the traders, it will carry out instructions on closing transactions on the stock exchange, compile reports of the movement of the media and much more. And, of course, everyone wants to have a reliable copate and assistant in the stock market or forex. First of all, you need to determine your own goals, requests, opportunities and strategies. Although, strategies can be discussed with a broker. Do you know what number of specialists work on the stock exchange? Multiple platforms, wide range of services, different amounts of capital and experience. There is a specific rating of brokers. How to browse this amount of information and choose the right, "your" broker? And even on the market there is a large number of criminals and cheaters. It is important not to go to the scammers under the signage shopkeeper. Let's try to talk together. We provide a step-by-step plan for choosing, which will certainly help you in this matter. 

It is important to define a few main ones: 

1. Reliability - includes the availability of a market participant's license, experience of working on the stock exchange, rating and reviews of colleagues and customers. On special sites you can find a range of brokers and counterparts that are predominant in your region.Many will be shown by the broker position indicator on the stock exchange - information about the volume of client operations, the number of active clients. It will not be superfluous to study the history of the brokerage company for the presence of financial scandals in the past, judicial managers, failing in work. 

2. Orientation on the tools used. Depending on the choice of the market, keep your attention on the sidelines - the leader in this category. The best broker for beginners - should be quick and good at trading, be active and popular among active clients. Take a good look at the notices about the risks in the agreement with the broker. It is always best to know, because you can lose money in the process of trading. Take into account your financial potential. Different brokers work with different depots, and they often provide discounts. For beginners, we recommend opening the minimum dosit, which will reduce risks and allow you to feel the game. Ask your specialist what markets he has access to. Investments in company shares can be made through various stocks. And the commission and the choice of paper will be responsible for this. 

4. Information support and attitude to the client is an important part of our work. Here it is necessary to take into account the quantity and quality of the information provided, the comforts of live communication, the full answers to your questions. Pay attention to analytic support, help in trading. How much is available to you to give instructions to a broker for the purchase or sale of assets, using all means of communication - from a telephone to a special computer. In this case, you should be comfortable using the service. 

5.Commission payments. The payment for the broker's services can be made as fixed for a certain time, as well as in percentage of the transaction amount. The identity of the commission in this case varies from 0.01 to 0, 3%. Be aware that some brokers remove the so-called "test month" when services are provided free of charge. At the beginning of your investor's career, choose the simplest tap. For small amounts on the account, it is more profitable to pay a commission from the transaction, so as not to lose large funds on the subscriber board.

For the commission broker, you can withdraw your money to the bank account, calculate and maintain tax on the received document. The brokerage service also includes the observance of the deadlines for the transfer of financiers, the percentage of the loan in case of need, etc. Do not dwell on the mediator's search with the lowest commissars. Here is your help - comparing broker's tariffs. It is more correct to choose a reliable, correct one. A tap or the broker can be changed, if it does not suit you. Brokers on the stock exchange. Using these criteria, you can choose a 2-Z person who will suit your requests. And then - to test them in action, by turning on the contract, let us, for one month and by comparing the operation of the system of each.  

The authorized person on the stock exchange has the opportunity to use your money for his own purposes. This general practice and a similar clause are included in the agreement on cooperation. And while the situation is developing normally, there is no danger. You can even talk about the reduction of the commission. Hopefully, if you suddenly become bankrupt, then some of your financiers, taken out of the client's account, may simply disappear. Therefore, make sure that your money is not spent for a long time on the account of the broker. It is best to invest them in shares or withdraw them to your bank account. In this way they will be protected.It is possible, of course, to prevent the manager from using your tools in his interpecax, after presupposing this when you sign the agreement. The broker can also use, at his own discretion, the securities you are holding, if there is your permission. The risk is that, if bankrupt, he may not turn them back. In addition, the estimated dividends on shares can be awarded not to you, but to the intermediary from whom they found the time of the receipt of the document. On the other hand, the limits for the broker in the use of your money or shares will increase the payment for routine services. Remember that investments should not be left unattended. Monitor the status of your accounts, keep track of financial news. Regularly request extracts. We advise you to contact the support service on its website before the final choice of the broker. Even before opening the account, you will see how quickly and fully they answer you, how the information is provided. A well-tuned process of communication with an investor presupposes a high qualification of personnel and, in the future, solving your problems.

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Matthew Chandler
Matthew Chandler
Matthew Chandler 33 years old Born in Edinburgh. Married with one child. Graduate University of Cambridge, Psychology course 2011. Works at Acclaim Studios London.

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