A broker is a professional carrying out the brokerage activity. His job is to act as an intermediary for a transaction between a seller and a buyer. The stock broker will act as an intermediary to place stock market orders on the various stock markets.
Which stock exchange organizations should you turn to open an account?
Surely you think that opening a stock market account is reserved for a particular caste and that you don’t have enough money to invest? Think again, stock market investment has really become more democratic. You only have to look at the number of broker offers, to understand the size of the market. But then, which broker to choose to start trading?
Which broker to choose to start trading? Your usual bank
Before the advent of the internet, regular banking was the only solution for ordinary savers. You call or write a letter to your bank advisor to place a stock market order. The advisor then transmitted the order to a stockbroker so that it could be validated on the market. As a result, you had fees on two intermediaries, the bank and the stockbroker, which resulted in significant fees. The wealthiest savers, meanwhile, had their stockbrokers resulting in reduced intermediate costs.
Today, all of this is over and that’s good. Now just connect to the website of your usual bank to place orders on the stock market. Fees related to stock market transactions also decreased.
Which broker to choose to start trading? An online broker
With the democratization of the internet and the stock market offer, online brokers have become legion. These specialized investment companies offer individuals like you to host their portfolio at a relatively low cost compared to their usual bank. The big advantage of these online brokers is the market environment that you will be able to benefit from.
Which broker to choose to start trading? Usual bank or online broker?
Which broker to choose to start trading? I’m going to do a little comparison which, I think, will help you make your choice.
Regarding the usual bank:
- You don’t scatter your accounts. Your bank and stock exchange accounts are on the same platform.
- Your advisor knows you, knows your savings and your savings profile and he can advise you well.
- You have all your accounts in the same bank, you will have more chances that the advisor will give you a discount from time to time on bank charges.
- Higher brokerage fees than an online broker.
- Lack of decision-making tools on the website and no forum.
- Additional costs (custody and management costs).
Now let’s talk about the online broker:
Very low brokerage fees compared to your usual bank.
Additional costs often offered depending on the number of trades (stock market transactions) that you will carry out monthly.
Large community (forum, social networks).
Ancillary and brokerage fees may be increased if you do not trade a lot.
Need to know a little bit about the stock market.
If you wish to open an account with ETFinance, contact with the agents, there is a sponsorship policy which will allow you to benefit from free trades if they are your sponsor.