Finding a reliable broker to buy stocks or trade financial derivatives (futures and options) is not an easy task for a novice investor. Each brokerage company promises the investor comfortable conditions for cooperation, but is this the case in reality?
Instructions
Step 1
If you plan to make frequent speculative transactions in the stock market, when choosing a broker, first of all, pay attention to the size of the commission that you will have to pay monthly. If you just intend to buy shares of a particular company for a long time, you do not need extra monthly expenses.
Step 2
Pay also attention to the trading equipment offered by the broker. Today the most popular terminal for trading in the stock market is Quik. It is distinguished by its reliability and functionality. Some brokers offer two or more terminals to choose from. The vast majority of brokers do not charge a fee for using the terminal, but there are exceptions.
Step 3
Check with a potential broker what the custody and trading rates are. However, if you do not plan to buy shares and store them in the broker's depository, but want to trade only futures and options, you should not be interested in the costs of servicing the depository. As for the trading tariff, tariffs based on a fixed monthly fee per month are suitable for an active trader, rather than tariffs from each completed transaction.
Step 4
An important characteristic is also the procedure for withdrawing funds from the account. This can be done in several ways: in person at the office of the brokerage company, through the client's personal account on the broker's website, by phone. The most convenient way is to withdraw funds through an application through the site. Specify how many days after the application is submitted, funds are transferred to your bank account.
Step 5
When choosing a broker, keep in mind that the most important characteristics of working with it (the speed of transferring quotes, the speed of order execution, the absence of server failures) you can evaluate only after opening an account and starting trading. If unrecoverable problems arise from the very beginning, change your broker.
Step 6
To find a broker that suits you, use search engines, broker ratings on MICEX and FORTS. Check out customer reviews on the trader and investor forums. This information should be sufficient to compile a list of potential candidates. The final stage of the selection stage is familiarization with the websites of specific brokerage companies.
