When investing in stocks, the choice of your broker matters as he is the one to make or break your trade. Getting a good broker surely pays off. Do not be in a hurry until you find a broker who meets your needs. Always conduct a background check, know their trading experience and look up itrustcapital reviews before making a decision. Here are some tips on choosing an investment broker:
Know the Cost per Trade
Investigate all costs and since it’s a number, you can easily compare with the cost of other traders. Brokers have a wide assortment of fees, make sure you don’t just rely on a single cost like stock trade cost. A trader charging the lowest commission per trade is not likely to be helpful if you mostly invest in mutual funds or do trade options.
Look online for the brokers’ comparison list, you will get genuine side-by-side comparison cost per trade charged by major firms. Apart from the cost per trade, you should also look for the minimum initial investment required. Some brokers don’t have minimum requirements while others have.
The Charges in Fees and Commissions
You should agree on the amount you are to be charged in fees and commission for the entire process. The contract has a well-defined schedule of payment. You will both know the amount of trade the broker can do on your behalf without commission.
According to how commissions are determined, get a schedule that indicates when you be making payments. It is important to keep in mind that an annual fee is better than a transaction-based fee. This is because it prevents brokers from making unnecessary transactions to get commissions.
Ask For Referrals
Get referrals from friends or families who have dealt with brokers before. This is to be sure that you get genuine services and you don’t a credible team. The finance department is also a good place to start asking for referrals, they usually have a vast knowledge of good investment brokers.
Don’t forget to ask why they chose a specific broker. For active traders ask for advanced brokers and if you are a beginner find the best option too. You can also ask fellow traders, they must have a list of brokers who allow testing trades and strategies using “paper money tools” or other testing educational tools.
Accessibility
You should be able to access your investment broker easily at any time preferably 24/7. Business ideas and problems can occur at any time be it during working hours or not, your broker should be the first person to contact.
Other than a phone call, live chat support is also important. The customer support system on the other end is supposed to be friendly and advise accordingly. If you can’t reach your broker on busy trading days then that should raise suspicion.