Brokerage account (from the English phrase Brokerage Account) is a special arrangement between a brokerage company that is necessarily licensed and the investor. Such an arrangement gives the investor the opportunity to deposit his funds into deposit accounts with the company, place orders to his broker, who, accordingly, performs operations on behalf and behalf of the investor. The brokerage account has assets owned by the investor. Accordingly, any capital gains are the type of income from which the tax will be recovered.
The brokerage account at different companies may differ in the speed of execution of orders, the number of tools for analysis, the volume of assets traded, the degree to which the benefits of
margin trading are used (trading using the so-called leverage).
There are several types of brokerage accounts and various brokerage companies. The investor can choose a broker and the type of account that best suits 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, training in details and subtleties, and other specific services. A very popular service with many online brokers is a special brokerage account on demo, virtual funds. For such needs, special servers have been developed where the conditions do not differ from these conditions in real trading using a real brokerage account.
However, the main and most important issue is the question of how to open a brokerage account. It is pretty simple. At the very beginning, the investor must decide on the platform on which he was going to open a brokerage account (this may be the stock market, where trading on stocks is held, and the derivatives market, where they trade futures and options). Naturally, do not forget about the now popular Forex currency market . Before you start choosing a broker with whom an investor intends to open a brokerage account, it is very important to find out comments, reviews and opinions about this brokerage office. You can view information on the Internet, consult with friends, colleagues and / or employees. Then carefully study the conditions and tariffing (such information is usually provided on the official website, however, you can seek advice directly from an employee of a brokerage company). The next important step is to determine the amount that the investor is going to invest in opening
own brokerage account. This item is completely individual, but many brokers specify the minimum amount for opening a brokerage account. The amount can also affect the conditions, so it is important to carefully stipulate and study all the subtleties.
The very procedure for opening a brokerage account is simple and quick. It will 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, which will indicate the conditions for opening a brokerage account.