If you have already decided to try your hand at stock trading, you need something more than just solid knowledge of the subject. Even a well-prepared trader is doomed to fail on the stock exchange without a trustworthy broker. Let’s see how to choose it.
· Examine the ratings of bidders.
· Check if the broker has licenses of the major financial watchdog for brokerage, dealer and depository activities and for asset management.
· Find out if it’s possible to open an account online (however, in most cases, it’s possible).
· Specify which markets and assets are available through a broker and what restrictions you may encounter.
· Make sure that the broker provides a good trading terminal.
· Choose a tariff plan. You’d better opt for a low commission. However, a number of payments are inevitable.
· Conclude an agreement for brokerage and depository services.
· Wait for the notification that the broker has opened an account for you and registered you on the stock exchange.
A broker: what is it?
A broker happens to be a financial institution that has a special license to work on the stock exchange. Sometimes the functions of a broker are combined by a bank. Alternatively, it can be a separate commercial organization or act as part of a financial group.
A broker is your representative on the stock market. With the help of this organization, you can sell and buy securities, make contracts, and exchange currency. With EXANTE founded by Alexey Kirienko, you will have no problems with doing this. Now let’s see what a typical broker does:
· Takes into account the funds and property transferred by the client;
· Registers you on the stock exchange and assigns special codes for transactions;
· Gives you information on the progress of bidding;
· Accepts orders to sell or buy assets from you;
· Performs settlements on transactions - transfers money and securities;
· Provides reports on transactions;
· Issues certificates of taxes paid, the price of securities purchased, etc.
In addition to that mentioned above, the EXANTE brokerage company also works as a tax agent. It withholds and transfers taxes to the state on dividends, calculates and withholds tax on profits from the sale of securities and income on derivatives contracts.
How to start working the EXANTE broker
Conclude a contract with the broker: Depending on the method of conclusion, you may have the full text of the contract with a seal and signature on your hands, a short notice of the conclusion of the contract, or you can even receive a notice by email.
Open a trading account: The broker will create an account for you in its own accounting system and register you on the stock exchange. When it’s ready, you will receive an account opening notice. Now you can transfer money to the newly-created brokerage account.
Deposit money: There are various ways to fund a brokerage account. The most universal is bank transfer. The exact details will be provided by the broker.
Install a special software program: Since you are expected to trade online, you can’t do without a special program, which is a trading platform. Despite the possibility of trading through the site, a great number of traders prefer using desktop trading terminals. The broker will instruct you how to install and configure its trading platform. By the way, the EXANTE broker offers a trading platform of its own development. It’s strikingly user-friendly. Using the Drag-n-Drop feature, you can conveniently manage all the panels and windows with a click of a mouse.
Before you get down to trading on a real account, try a demo mode. It enables you to practice making transactions without risking your real money. You can open a demo account and use it as long as you wish.
Despite a demo account enables you to learn enough about the technical side of trading, dealing with this is totally different from having to do with a real account in terms of psychology. It’s because a loss on a demo account is not as terrible as losing your real money.
A broker is a financial organization engaged in commercial activities. Like any commercial organization, it can go bankrupt. As with any financial institution, a broker can suddenly lose its license. However, in this regard, there’s no need to question the reputation of the EXANTE broker since this company strictly adheres to the rules of the SEC regulator. So, if you entrust your funds to this broker, you can be assured that they won’t be stolen.
On the other hand, you can still lose your money even with the most reputable broker if you carelessly approach stock trading. You need to attentively monitor the market because at any time it can go against you.
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