Value Momentum

Investing Course Lesson 11

Choosing a Stock Broker

By Adam Khoo
Professional Stock & Forex Trader

www.piranhaprofits.com
www.wealthacademyglobal.com
 Choosing a Stock Broker
These are some critical considerations in choosing a stock broker.
1.Commission rates & additional charges
• This is the biggest cost of your investment or trading business
• It can range from a minimum of $1- $50 per trade, depending on the
broker
• Most US brokers just a minimum of $8 per trade. Discount brokers go
down to as low as $1 (with a minimum number of trades per month)
• Are there additional charges for data feed, custodian fees, inactivity
charge etc…?
 Choosing a Stock Broker
2.Financial strength & Regulation
• Check the financial rating of the broker to ensure it is financially stable
and it should be a regulated broker
3.Minimum deposits
• Minimum deposits range from $2,000- $3,000
4.Margin rates
• If you are using margin, check the interest rates on margin. They can
range from 1.5%-9% per annum
5.Trading Platform
• Does the broker have a user-friendly charting software with trading
features like stop loss orders, market orders, trailing stop loss orders
etc…
 Choosing a Stock Broker
6.Range of Products and Markets
• Does the broker offer a wide range of products over
various markets?
• How many markets do you have access to trade in?
• What are the products offered? Stocks? ETFs? Options?
CFDs? Forex? Futures? Bonds?
7.Customer Service
• Before you open an account, call the company's help
desk with a question to test how long it takes to get a
response. Is there an online instant chat service?
www.brokerage-review.com
Compare the various US online brokers at
www.brokerage-review.com
 Value Momentum
Investing Course Lesson 11
Choosing a Stock Broker

By Adam Khoo
Professional Stock & Forex Trader

www.piranhaprofits.com
www.wealthacademyglobal.com