Brokerage account - what is it and how to open it?

A brokerage account (from the English phrase "Brokerage Account") is a special arrangement between a brokerage company, necessarily licensed, and an investor. Such an arrangement gives the investor the opportunity to contribute to deposit accounts in the company, place orders to his broker, who accordingly performs operations on behalf of and the person of the investor. The brokerage account has assets held by the investor. Accordingly, any capital gains are the type of income from which the tax will be collected.

The brokerage account for different companies may differ in the speed of execution of orders, in the number of instruments for analysis, in the volumes of tradable assets, in the degree to which the benefits of margin trading are used (trade using the so-called "shoulder").

There are several types of brokerage accounts and a variety of brokerage companies. An investor can choose a broker and the type of account that most closely matches his requirements. At the moment, many brokers not only offer the widest range of a wide variety of services, but also provide advice on investing, learning the details and subtleties and other specific services. A very popular service for many online brokers is a special brokerage account for demonstration, virtual media. For such needs, special servers are developed, where the conditions do not differ from the present conditions in real trading using a real brokerage account.

However, the main and most important issues are the question of how to open a brokerage account. It's pretty simple. At the very beginning, the investor must decide on the site on which he intends to open a brokerage account (this may be the stock market where trades are held on shares, and the futures market where futures and options are traded). Naturally, we should not forget about the now popular forex currency market . Before choosing a broker whose investor intends to open a brokerage account, it is very important to find out comments, opinions and opinions about this brokerage office. You can see information on the Internet, consult with friends, colleagues and / or co-workers. Then carefully study the conditions and tariffing (such information is usually provided on the official website, however, you can contact the brokerage company directly for advice). The next important step is to determine the amount that the investor is going to invest in the opening Own brokerage account. This item is absolutely individual, but many brokers specify the minimum amount for opening a brokerage account. Also the amount can influence the conditions, so it's important to carefully discuss and learn all the subtleties.
The procedure for opening a brokerage account is simple and fast. It does not take more time and effort than, for example, opening a deposit in a bank or the process of obtaining a loan. An agreement will be drawn up between the investor and the brokerage company, where the conditions for opening the brokerage account will be specified.