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18.09.2015 admin
Opening a brokerage account doesn't have to be scary if you understand what questions to ask.
It may seem trivial, but one of the most important decisions you're liable to make as an investor, and one that could wind up saving you substantial amounts of money, is deciding when and where to open a brokerage account. Although there's nothing inherently wrong with allowing a financial advisor to handle your financial affairs, having your own brokerage account offers advantages.
If you have made the decision to open a brokerage account, or are at least considering doing so, keep in mind that there are a couple important questions you'll want to ask yourself, and perhaps the brokerage, before you commit to opening an account.
At the other end of the spectrum are a handful of brokerages that advertise no minimum deposit.


Make sure you take the time to look into the deposit requirements and potential recurring deposit capabilities of the brokerages you examine. If you want to buy more stock(s), you'd simply need to add more money to your brokerage account.
The first thing you'll want to know is whether there's a minimum deposit requirement to open a brokerage account. However, since we at The Motley Fool preach a long-term ethos to investing, overall commission costs should probably play only a nominal role in your brokerage account decision process. Having a brokerage account can also keep you personally involved and attached to your financial future, which is not always going to be the case if you solely rely on a financial advisor to handle your affairs.


However, just as with short-selling, you'll owe interest on the money you borrow, and if the stock moves in the wrong direction, you may wind up being sold out of your position or, worse yet, owing money to your brokerage firm.



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