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
Currently, there are many companies specializing in opening transactions on the stock exchange, and all you have to do is choose a stock broker.
The main criteria are the minimum deposit amount, the availability of the required securities, the ability to receive dividends, Russian-language support, and working with residents of your country.
You should also decide which trading option is right for you, as today you can make both traditional trades and CFDs.
• Traditional Trading – little or no leverage, no naked short positions, minimum commission, depository fees, initial deposit requirements, dividends accrue.
By minimum commission size we mean that when purchasing shares, the broker's commission amount cannot be less 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, no minimum commission, there is a fee for transferring a position – swap, dividends are accrued on long positions and written off on short ones.
In short, if you're looking to choose a stock broker for long-term investments, a company offering a traditional option is more suitable. For speculative trading, it's best to use a broker offering CFD trading.
This is an important point when choosing a stock broker, since not every company offers both options for making transactions.
I can personally recommend two stock brokers that offer both CFD and traditional stock trading options:
Alpari is a well-known brokerage company that allows you to open securities trades on 20 stock exchanges.
With this stock broker you can buy and sell over 1,000 company shares using CFD contracts.
A professional platform, MetaTrader 5, is available for trading. Dividends are paid when purchasing securities; the initial deposit is from $100.
Alpari broker website - www.alpari.com
RoboForex – don't let the company name fool you. This broker has been providing its clients with access to the stock market for many years. Here you can trade over 12,000 company shares:
Trading platforms available for trading include MetaTrader 4 and 5, R StocksTrader, and cTrader, which allows for the use of various contract types.
The main advantages of working with RoboForex are excellent customer support, low commissions, and a $30 no-deposit bonus. I've been a client of this broker for over 10 years.
RoboForex broker website - www.roboforex.org
