How do you decide which is best for you? Very simply, a brokerage firm allows you to buy and sell shares on the stock market. They charge commission fees for each transaction you make. That means that when you buy shares, you get charged. When you sell your shares, you also get charged. To be eligible to open an Account, you need to be at least 18 years old and an un-discharged bankrupt.
Here are three main factors you need to look out for when choosing the best brokerage firm for you:. Like I said earlier, you get charged commission fees on every transaction you do, buy or sell.
So because you expect to be charged commission fees multiple times, you should not pick one that charges exorbitant rates. Of course, while fees is an important consideration, this should not be your only deciding factor. In the past, many trades required investors to call their brokers and deal with them directly.
Furthermore, they had to rely on stock prices and other information that may not be updated instantaneously. Those days are long gone. Brokerage firms these days offer online trading platforms or even iOS apps that allow you to check stock prices and make trades on the go.
This is generally a non-issue because most brokerage firms allow you to hold your stocks with the CDP. What this means is that while you buy and sell stocks through most firms, the stocks themselves are held by you. What this means is the custodian account e. Standard Chartered owns the stocks on your behalf.
This also means that they have certain rights over stocks that you have bought. Furthermore, on the very slim chance that the firm goes bankrupt, you will lose all your stocks because it is technically not in your name. However, those lower fees do come at a slightly higher risk, which may or may not affect your decision to go with them.
Do take note of optimal trading volumes. The same thing goes for small-time investors. Do you have any other advice for new investors who want to try out a brokerage firm? We want to hear from you. Like us on Facebook to keep up to date with our latest news and articles. Compare and shop for the best deals on Loans , Insurance and Credit Cards on our site now! Straits Times Index 3, MoneySmart 27 June What is a brokerage firm?
Which brokerage account to choose? Here are three main factors you need to look out for when choosing the best brokerage firm for you: Commission Fees Like I said earlier, you get charged commission fees on every transaction you do, buy or sell. Trading Platform In the past, many trades required investors to call their brokers and deal with them directly.
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