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In 1991 Billy and Akaisha Kaderli retired at the age of 38. Now, into their 4th decade of this financially independent lifestyle, they invite you to take advantage of their wisdom and experience.

9 Interesting Facts You Should Know

about Trading Brokers

William Martin

 At some point in our life, we have all contemplated investing in the stock market. However, the prospects of making money are as high as losing it too when you trade on the stock. That is why most people do not take a big leap. But that is where the stockbrokers come to your rescue. There are numerous stockbrokers and trading agencies which will guide you with your investments. If you are planning on leap stock trading, here is all you need to know about trading brokers.

Multiple Trading Options

A reliable and well-established stockbroker will offer you investing options more than just stocks. Yes, websites like https://www.trusted-broker-reviews.com/octafx/ connect you with stockbrokers who will acquaint you with cryptocurrency, stock, and trade currency and help you invest in the assets that best match your portfolio. With over 1,500,000 traders on the platform, you could connect with a person who helps you evaluate your risk, identify the right assets, and guide you on the possible risks that come with every investment.

Patience

Remember that you will have to be patient, practical, and give it some time for your investment to yield results. That way, you will not just be in a position to minimize your losses but also make a massive fortune online. And if your stockbroker is promising you overnight results and instant wealth gain, you should think twice before entrusting your money with them. Every good thing takes a while, and the same holds with your investments too. So, do not be in a rush and pick a stockbroker with realistic timelines on the ROI over someone who promises you the stars.

Experience

We work all our lives to earn money and secure our future. So, the person with whom you entrust your money must have experience in handling wealth. No matter how small the amount, they should be able to make responsible decisions based on market research. And this comes only from experience. So, always pick your trade broker based on their experience and expertise on the stock market over fancy promises.

Authenticity

With the rapidly increasing number of online trading, there is a rise in the number of online stock brokers too. And that is why you need to check the legitimacy of the stockbroker before signing an agreement with them. You should check for more than just their certifications and credentials. It is important to see if the organizations they have affiliations with are legitimate too. The company's website should have all the information on their registration, their clients, financial information, and statistics about the brokerage. However, if you do not find any of these, you could consider that a red flag and drop the deal.

Costs and Commissions

The brokerage commission for stock trading differs from one organization to another. However, it is usually around one or two percent of the client's entire assets that the organization manages. You need to be the broker with a commission for buying and selling your securities or stocks. As a major share of your stock broker's wealth comes from your commissions, you need to understand what is in the fine print before you sign the dotted line.

To begin with, your stockbroker might charge you a minimum deposit before they start trading on behalf of you. And from then on, you will have to pay for every stock you buy or sell. Besides that, most stock brokers also charge an inactivity fee, if you go for several months without trading. So, understand what you are signing up for before you hire a stockbroker to manage your assets.  

Education

A stockbroker needs more than just a strong understanding of how the stock exchange works. Most of them acquire a degree in financial management or wealth management to add to their credibility. Besides that, you can also look for a stockbroker with specialized degrees in quantitative analysis, mathematics, and statistics. It would also help if your stockbroker has an in-depth understanding of the various financial markets, regulations, and accounting practices. Even if all these educational criteria to do match, it is acceptable as long as your stockbroker has a General Securities Representative Exam certification and is a registered member of the FINRA.

Online Support

We currently live in the era of automation and everything is available online. So, it only makes sense for your stockbroker to offer you your investment details online too. However, this should be more than just an email or an excel sheet with all the information. Most stockbrokers offer customized tools that provide you with a dashboard that helps you track your investments and stocks. Besides that, a few agencies also offer round the clock support services to clarify any queries that you might have. So, while picking a stockbroker, always look for one who is willing to provide you with the tools for monitoring your portfolio, market research, and investment analytics.

Stock Segregation

This is a question that most investors forget to ask. However, it is important to understand if the broker or the agency with whom you are entrusting your wealth can do it for you. Stock segregation is when the broker or the investment agency segregates your investments, stocks, and securities from their assets. You can call this security segregation and it would save your assets from commingling with that of the firm in the event of a loss.

Incentives

Stockbrokers are on the verge of becoming an extinct breed. And this is because of the internet evolution, the changing investment styles, and automation. So, broking firms are constantly striving to onboard customers and would be willing to offer numerous incentives, promotions, and discounts to make you sign the dotted line. Remember, that you could always trade online without hiring a stockbroker. However, a stockbroker could still be relevant if you wish to invest without spending a lot of time on research and would like to hire a professional to do that for you.

Following these guidelines, you can pick a stockbroker who would increase your wealth exponentially, by helping you invest in the right stocks. Happy Investing!

The views expressed by OCTAFX are not necessarily those of RetireEarlyLifestyle.com

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About the Authors

 
Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance, medical tourism and world travel. With the wealth of information they share on their award winning website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible available on their website bookstore or on Amazon.com.

contact Billy and Akaisha at theguide@retireearlylifestyle.com

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