Discount is not always the best solution
It’s best to start by asking a broker for complete services. They are often of great help to novice investors who may still need to gain confidence and become familiar with the markets. Once you are more confident, you can manage your investments more.
The key: availability
Try to join the company’s website at different times of the day, especially during peak trading hours. Check how long their site puts to load and click on a few links to make sure there are no technical problems.
An alternative market allows more flexibility
Although we are all crazy about the internet, we can not always be in front of our computer. Check out the other options the company offers for stock market investments. There are other alternatives such as placing orders via your phone’s keypad, by fax or by your good old flesh broker. A word to the wise: make sure you take note of the prices for these options as they often differ from those of an order passed via the internet.
The importance of the broker’s notoriety
What do others say about the broker’s services? Just as you must do some research before buying an action, you should glean as much information as possible from your broker.
The price does not do everything
Quality is paid for. Like any good or service, price refers to quality. Do not open a broker account just because it offers the lowest commission. The rates displayed vary widely ranging from less than 2 euros to a decade of euros per order. You will often find inscriptions in small print indicating exactly what services you are entitled to. Most of the time, rates will be higher for limited orders, options and all transactions over the phone. You may find that the advertised rate does not apply to the type of transaction you want …
Minimum investment capital may be high
Look at the amount the company asks you to pay to open an account. Pay attention to fairly high minimum balances. Some brokers ask for up to 50,000 euros of minimum capital to open a certain premium account. This may be suitable for some investors, but (unfortunately) not at all.
Product selection is essential
When choosing a broker, many of us launch too quickly in the stock purchase. Remember that there are other investment opportunities, such as certificates, bonds, UCITS, ETFs or options. Many brokerage firms also offer other financial services, such as chequing accounts and credit cards.
Nothing more exasperating than sitting for 10 minutes waiting for help. Before opening an account, call Customer Service with a question to see how long to wait for a response.
Paid cash accounts
It is likely that you have cash on your brokerage account. Some brokers will offer to pay them, while others will only offer you saddles. Check with the broker to find out what they are offering. In fact, it’s a good question to ask to test customer service!
Small extras can make a difference
Be alert for extras that brokerage firms offer their new customers. Do not make decisions based exclusively on the 1,000 euros of free transactions … but think about it. By clicking a mouse, from anywhere in the world, you can buy and sell shares by contracting the services of an online broker. Using the right tools is the key to success, and success on the stock market begins with the choice of an online broker worthy of the name.
The information of Cafedelabourse.com and its publications are given for educational purposes only. They do not constitute investment recommendations. The reader should study the risks before making any transactions. It is solely responsible for its investment decisions.