Steps to open a brokerage account


You might have taken the route to investing, and rather than investing a brokerage firm you can think of availing the services of an online broker. Are there any things you need to be aware before you start to invest? On a personal level I am a big fan of the best discount broker in India as you can invest any amount of money at a given point of time. In a way your investment options are unlimited. Without any professional guidance to help you with your investments, it would be walking on a thin rope without any form of support. But for your convenience there are a series of 5 tips that would be of help

Figure out the mechanisms on how you can fund your online brokerage account

A simple fact but often overlooked. Most of the online brokers are going to allow you to electronically transfer your funds from the savings account on to the brokerage account. The brokerage firms do allow you to even fund your account slowing down your investment plans. So you need to be aware of these points before investing.

Be aware of the reasons of investing

You need to have a clear idea on what type of investment suits your needs, and then you might be prepared to choose the best online brokerage firm as per your needs. In case if you are planning to invest for your retirement and want money to be there till 60, then a choice of a IRA or  Roth IRA account would be beneficial. This can provide you with significant tax benefits and help you save a lot of money in the long run. On the other hand if you are planning to save money for your child’s education it can be done via a systematic plan.

Take stock of the minimum requirements along with the brokerage fees levied by the broker

Be it the choices of any type of broker you will soon realize that the brokerage fees or charges are not expected to be the same. Clearly be aware of the schedule fees or pricing charges of each of the brokers. There are some brokers who levy a fixed charge on each transaction whereas others ask you to pay a certain percentage of money related to the transaction cost. Do pay attention to account minimums as what is the amount of money that is needed to open an account. The popular firms tend to wave off this requirement.

Be aware of where you are investing

Just as you head over to a grocery store without having no idea what to purchase, the same concept applies in case of online trading. You need to be aware which the areas you are investing are. If you are a newbie to the market then a discount broker would suffice your needs. But if you are considering professional advice it is always better to seek the services of a full time broker. They can guide you on how to take the investment plan forward.

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