It is customary to call a broker account a special agreement between an investor and a brokerage company that has a license. Investors are given the opportunity to place their funds on the company's deposit accounts.
Brokerage account concept
An investor can deposit funds into the account of a brokerage company only if there is a certain agreement between him and this company. The presence of a brokerage account allows the investor to entrust the execution of operations with their assets to brokers. Simply put, such an account has assets available that are the property of the investor. Consequently, any capital gains will become a type of income from which tax is collected.
Brokerage accounts of different companies may differ in the speed of order execution, the number of tools for analysis, the degree of application of the advantages of margin trading. This refers to trading using "leverage". Also, accounts usually differ from each other in the volumes of trading assets.
The investor can choose the type of brokerage account that best suits his requirements. Currently, many brokerage companies provide investment advisory services. A very popular service is considered a brokerage account with virtual funds. For this, special servers are usually developed, where the conditions are very similar to real trading.
How to open a brokerage account
The investor should first decide on the optimal brokerage platform. It can be the stock market or the derivatives market. By the way, the Forex market is in great demand now. Even before starting the choice, it is recommended to read reviews about brokerage companies so as not to be mistaken. You can find information on the Internet or consult with colleagues and friends.
Then the investor must study the tariffication and terms of cooperation in a particular company. Usually, such information is posted on official websites. But you can seek advice directly from an employee of the company. After that, you need to decide on the amount that will be invested in opening your own brokerage account. By the way, some companies have a minimum deposit amount. This amount may affect the conditions for opening an account.
But the very procedure for opening a brokerage account is extremely simple. It takes no more time than opening a bank deposit. A standard agreement is simply drawn up between the company and the investor, which necessarily prescribes the conditions for opening a brokerage account.
