How to choose a stock broker for trading or investing
Securities trading is one of the most popular types of stock trading today.
Most of the largest investment funds invest their clients' capital in the stock market. And this is not surprising, because in addition to increasing the value of company shares, this type of investment also brings profit to its owners from dividends.
But the most pressing issue in this topic is - How to choose a stock broker through whom investment or speculative trading will be carried out.
Today, there are several options for purchasing securities, and choosing the most suitable one depends on your goals and capabilities.
At the end of the article, examples of the most popular brokerage companies for the stock market will be given.
Options for purchasing shares through a stock broker
At the moment, there are a lot of companies specializing in opening transactions on the stock exchange and you just have to choose a stock broker.
The main criteria are the size of the minimum deposit, the availability of the necessary securities, the opportunity to receive dividends, Russian-language support, and work with residents of your country.
You should also decide which trading option is right for you, since today you can make both traditional transactions and using CFDs.
• Traditional trading – little or no leverage, uncovered sales cannot be made, there is a minimum commission, depository fees, initial deposit requirements, dividends are accrued.
By minimum commission, we mean that when purchasing shares, the amount of the broker's commission cannot be lower than a certain value, for example, $30.
• Trading using CFD contracts - leverage up to 1:20, it is possible to make transactions in both directions, there is no minimum commission, there is a fee for transferring a position - swap, dividends are accrued on long positions and written off on short ones.
That is, we can summarize that if you want to choose a stock broker for long-term investments, then a company with a traditional option is more suitable for you, but for speculative operations it is advisable to use a broker with the ability to trade CFDs.
This is an important point when choosing a stock broker, since not every company has both options for making transactions.
On my own behalf, I can recommend two stock brokers that offer both CFD options and traditional trading in company shares:
Alpari is a fairly well-known brokerage company that allows you to open transactions with securities on 20 stock exchanges.
Thanks to this stock broker, you can buy and sell more than 1,000 company shares using CFD contracts.
A professional platform is available for trading - metatrader 5. When purchasing securities, dividends are paid, the initial deposit is from $100.
Alpari broker website - www.alpari.com
RoboForex – don’t let the name of the company confuse you, the broker has been providing its clients with access to the stock market for many years, here you can trade more than 12,000 shares of companies:
Trading platforms such as MetaTrader 4 and 5, R StocksTrader and cTrader are available for trading, which makes it possible to use various types of contracts to open.
The main advantages of working with RoboForex are excellent customer support, low commissions, and a no-deposit bonus of $30. I have also been a client of this broker for more than 10 years.
RoboForex broker website - www.roboforex.org