We would advise starting the search for your broker among many companies on the market not by comparing tariffs, but by studying the services provided by the organization.
First of all, find out whether it is possible to remotely connect to the online brokerage service, or whether it is necessary to visit the office. This point is important if you do not live, since the bulk of brokers are concentrated here – in the regions, the choice of companies is much less.
It is also worth clarifying which stock exchanges the company works with. If you want to trade not only shares of companies, but also futures, find out if the company provides access to trading on the futures market.
After that, you should find out if the broker has requirements for the minimum amount to open an account, or is it determined at your discretion. Another important aspect is how funds are credited and withdrawn from the account. And if everything is more or less clear with the transfer (as a rule, you simply deposit money through the bank to the broker’s account), then some details need to be clarified regarding the withdrawal. For example, how long does this procedure take. Some companies set a commission for each such transaction. Ideally, it is desirable to communicate with one of the company’s clients who have already withdrawn funds from the account. But if this is not possible, ask the company’s employees about all the details.
Also check what software the broker offers. Most often, Ukrainian online traders are offered SmartTrade or Quik programs. The second one is much more common. So in this sense, it is better to learn how to work with Quik right away, because it is possible that in the future you will want to change the broker. However, there can be no unambiguous recommendations here – each trader chooses for himself the most convenient tools for him.
In addition to the basic points, a novice trader will benefit from a number of additional services.
Specify what information the broker provides to its clients. As a novice trader, you will need industry and macroeconomic statistics with relevant comments from the company’s specialists, information and comments on changes in legislation, company news, information on issuers’ reporting and changes in their management, analysis of trading dynamics on world stock markets, major financial news.
All this information can be provided to you free of charge or on a paid basis, which is also desirable to immediately check with the broker.
Even the most complete market information will not be enough if you do not already have significant experience in stock trading. In this case, you may need to consult an experienced specialist. Ask if the broker provides expert advice, that is, if you have difficulty making a trading decision, call the broker and consult. This service can be paid or free. Also ask if you can seek advice as often as you need and how much help you can expect.
Even if your broker provides excellent free advice on your first request, in order to make money you need to learn how to trade yourself. It is faster and easier to do this not on your own mistakes, but on special courses and trainings. Brokers often hold seminars for private investors. Find out what training programs your chosen company has – paid courses, free seminars, video tutorials, webinars, and so on.
If you have time, it will not be superfluous to go to free classes from several brokers in order to “take a closer look” and chat with experts. This will also help you to form your idea of the company.
The main costs of paying for the services of a broker consist of a commission on turnover. Depending on its tariff policy, the broker receives 0.05% -0.15% of the total amount of your transactions. Most often, the commission decreases as the amount of transactions increases or as the amount in your account increases. In addition to the commission, which is set as a percentage of turnover, the broker can set a fixed fee – monthly or for each trading session when you made transactions with securities. In addition, there may be a minimum commission amount.
The pricing of broker services in the futures market differs. Here, a fixed fee is set for each transaction, scalping operation (buying and selling during one trading session) or organizing the execution of a futures contract, as well as for forced closing of a position.
In addition, you may be charged additional costs, in particular, payment for the services of a custodian. Some brokers immediately include it in the cost of the subscription fee, for others, the services of the custodian are paid separately. An exchange commission may also be charged, a fee for blocking / unblocking funds for trading on the exchange, for using a trading terminal, for processing documents for connecting to the system