Stock Broker Selection Criteria
Where to invest money is the most common question for beginners. One of the important criteria for successful trading is the choice of a broker. You can use the most advanced trading strategies on the stock exchange, but if the broker fails, then you will not see any income.
How to choose a broker
The current and independent rating of brokers can be found on the Broker-Foreks website.
How to choose a broker by turnover
It is worth evaluating brokerage companies by their turnover. After reviewing the list, it will become clear which organizations occupy leading positions in the brokerage business, where client trust is higher.
How to choose a broker according to individual preferences
The main selection criterion remains the individual preferences of each client. the final choice largely depends on this.
Before opening an account, it is worth deciding on some nuances:
- Is training required? As a rule, a large and reliable company has a full-time training center where practicing traders conduct training courses.
- Compare commissions of different brokers. The main income of a broker is a commission charged from a client for making transactions on the market. By compiling your own rating of companies by commissions, you can understand which of them should be emphasized.
- How often do you have to trade? It is important to find out if the broker provides a trading terminal or whether it accepts orders by phone. If a company offers a trading program, is it paid?
- Additional information services. If you want to trade on the recommendations of a brokerage organization, you need to find out if it offers such services and how much they cost.
How to choose a broker by reputation
To weigh the reputation of a brokerage firm, you need to find answers to such equally important questions:
- How long has the company existed?
- Have there been cases of license revocation? If yes, for what reason?
- Were there any problems with clients? And how did they decide? etc.
Having evaluated all the above criteria in aggregate, we can safely conclude which broker meets individual needs and choose it.