How to open a brokerage account for beginners.

What is a brokerage account

The concept of a brokerage account


An investor can deposit funds into the account of a brokerage company only if there is a certain agreement between him and this company. The presence of a broker account allows the investor to entrust the execution of operations with his assets to brokers. Simply put, such an account has assets that are owned by the investor. Consequently, any capital gains will become a form of income from which tax is levied.
Brokerage accounts of different companies may vary in the speed of execution of orders, the number of tools for analysis, the degree of use of the benefits of margin trading. This refers to trade with the use of "leverage". Also accounts usually differ from each other in the volume of trading assets.
The investor can choose the type of brokerage account that best meets his requirements. Currently, many brokerage companies provide investment advisory services. A very popular service is considered to be a brokerage account on virtual funds.To do this, usually develop special servers, where conditions are very similar to the real trade.

How to open a brokerage account


Pre-investor should decide on the optimal brokerage area. This may be a stock or derivatives market. By the way, the Forex market is very popular now. Even before the selection, it is recommended to read reviews about brokerage companies, so as not to be mistaken. Information can be found on the Internet or consult with colleagues and friends.
Then the investor should study the pricing and terms of cooperation in a particular company. Typically, such information is posted on official sites. But you can ask for advice directly to the employee of the company. After that, you need to decide on the amount that will be invested in opening your own brokerage account. By the way, some companies stipulate the minimum amount of the deposit. This amount may affect the conditions for opening an account.
But the procedure for opening a brokerage account is extremely simple. It takes no more time than opening a bank deposit.A standard agreement between the company and the investor is simply drawn up, in which the conditions for opening a brokerage account are required.

Video: What is a Brokerage Account/Firm?


Images: What is a brokerage account What is a brokerage account
Images: What is a brokerage account What is a brokerage account
Images: What is a brokerage account What is a brokerage account
Images: What is a brokerage account What is a brokerage account