A Beginner's Guide To Choosing A Stock Broker

Interested in investing in the stock market? ​How can you start investing or trading in the Stock Market? You need a Stockbroker!

Provided you have adequate savings and have the risk appetite to invest in stocks, one of your first considerations is choosing an accredited stock broker. How do you choose a broker that's best for you?​

2 Types of Stock Brokerage
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There are two types of stockbrokers: Traditional and Online.

Traditional Stockbrokers provide a licensed salesperson who takes orders through phone calls or email. Going through the traditional route means that your account is handled by professional brokers or traders. The commission may be higher but this gives you access to industry expertise.

Online Stockbrokers enable their clients to make buy or sell placements through their web-based trading platform. Having an account in an online broker offers more personal control, and trades can be executed immediately during trading hours. However, independence also means doing your own research, and you may not have the same access to market information as professional brokers do.

Reminders When Choosing A Stock Broker​
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Account Funding and Withdrawal
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Many firms have partnership with banks that make fund transfers and withdrawals easier, so preferably choose one which is partnered with a bank you're more familiar with.

Commission and Other Fees

As a paying client, you are entitled to support to any concerns or issues to your account. Having prompt and helpful customer service ensures that your investing experience is smooth and helps you be confident in your investment decisions.

Research and Analysis Tools
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​What tools do you need in order to make confident investment decisions? What are your investment styles? Further, professional interpretation of reports also comes with a cost. Access to specific reports and insights vary from broker to broker, and while there are many research avenues, this is still an important thing to consider when choosing a broker.

Account Funding and Withdrawal
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Especially for online brokers, having a stable website is very important because you can only execute investment decisions when the platform is functioning well. In a volatile market, being unable to execute any order immediately can mean overshooting or missing your targets.

Commission and Other Fees

​Owning a stock investment or trading account comes at a cost. If you want to be guided by industry experts and have access to professional reports, you might have to pay higher fees compared to being more independent in your investments. Regardless, weigh the costs between different types of accounts and decide which features you prefer.