How to choose an online stock broker
BY READERS DIGEST
3rd Mar 2021 Managing your Money
There is never a better time than now to investigate investments. About 2.2 million people in the UK were subscribed to a stocks & shares ISA account in 2019 and about 13.5% of UK shares are owned by individuals. A 2018 report by the Office for National Statistics also highlighted that 54.9% of the value of the UK stock market were held by the rest of the world while 13.5% were held by UK-resident individuals.
The numbers keep increasing, especially with the recent trends in investments and the constant need for many people to get their finances together and try and grow their wealth portfolio. You will however need a stockbroker to make your dreams of owning stock become a reality.
Selecting the best brokers for trading, especially for beginners, may prove difficult due to the wide range of options available today. This article highlights some of the key things to look out for when choosing an online broker.
what do you need?
The first step to investing is to know your goals, so you can have a proper plan ahead. This plan will help determine what you need in a stockbroker. What are the key things you will need in a trading platform? Knowing this will help streamline your options. For example, what an expert trader would look out for in an app will be completely different from what a complete beginner would require.
If you are a beginner, you might want to pay more attention to how user-friendly the platform is, access to helpful resources and real-time trading charts, and easy access to support staff. On the other hand, an expert trader will tend to focus more on how effective the app is while trading and how it can help them reach their goals faster. This could include advanced charting capabilities and access to a variety of trades.
You can also consider the commissions and investments you’ll use the most. Common investment options include Individual Stocks, Mutual Funds, ETFs, Bonds, among others. Research what these options are and decide what you want to trade, then ensure your desired broker will allow you to trade them.
Know your needs and look for platforms that will best align to them.
Major things to never skip
While looking to choose the best option, remember that some things are non-negotiable. Start with the security of the app and ensure there are great security measures in place that guarantee the safety of your funds. Also, watch out for account fees, including possible hidden fees, so you don’t end up paying more in fees that could cost you a large percentage of your profits.
Most importantly, make sure you like the service. You may want to look for reviews from past and current users to have an idea of what to expect. You can have a wide range of options to choose from but ensure you are making an informed decision and opting for the best service that aligns with your investment needs.
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