Known as Broker, These institutions are in charge of making investments accessible for people by facilitating access to different financial instruments. Also known as retailers, these make it easy for people to buy assets like stocks, mutual fund shares, and more.
Basically it is about the institution through which you will make your investment and which will be in charge of managing everything, from the opening of contracts or leverage to the withdrawal of your earnings. That is why choosing a good broker turns out to be very important before starting to invest.
✨ The importance of a good broker
Having a quality broker that meets our expectations and also gives us many benefits is very important. This is because a bad or unreliable one will not only give us a bad experience, it can also make us lose a lot, a lot of money.
To ensure that your investments are safe, as well as to make the investment process much easier, you must learn how to choose a good broker. The importance of the broker is in the reliability and security that they offer, the tools to invest, the experience of use and also the final returns.
✨Five basic points to take into account
- Bargaining offer
One of the most important points to take into account is the broker's trading or investment offer. In order to choose the best one, you must first start by asking yourself what types of assets you want to invest in, as well as in which markets to operate.
With this information you can proceed to investigate more about the broker offers, that is, the options available for both instruments or assets and markets. The best option will be the one that meets your needs, or in this case, give you the option to invest where you want to invest.
- Place where it operates
More than a place, it is the means by which it operates. In this case you should know that there are two different types, those that operate in person with branches such as banks and brokers that are digital.
The most common is to use an online or internet broker. These offer a lot of benefits such as being able to invest anywhere while you have access to an internet network. In addition, many online brokers operate both with web pages and apps for mobile devices.
- Real-time access to the stock market
If you have decided that you are going to invest in the stock market, you should know that the time in this is totally different. Here a simple minute can make the difference between a good buy and that the shares have lost a lot of value or have become unaffordable.
That is why We recommend that you verify that the Broker has access to the exchange easily, as well as offer tools in real time. Without this, trading on the stock market can be very difficult as even a difference of a couple of minutes can change the course of an investment.
The broker's business is not in making investments but in managing your investment portfolio and offering you access to both markets and instruments and assets. In a nutshell, earn money by charging you a commission for operating your account and making investments.
Basically it is a kind of fee or ticket which is charged on profits, or losses depending on the instrument. We recommend that you take into account the commissions charged by the broker in order to evaluate if it really suits you. Commissions are often high and they can reduce your returns.
Lastly, we recommend you take into account the cost benefit ratio, since many users believe that low commissions is synonymous with poor quality. This is not always the case, as there are brokers who offer discounts on their commissions as part of their offer.
We recommend you evaluate the cost / benefit ratio, that is, If the broker charges you high commissions then it must offer you good returns, tools and additional benefits. Thus, you can find a broker that offers a good relationship between what they charge you and the amount of benefits they offer you.
✨Change broker? Does it cost to change broker?
Something you should know is that the change of broker will depend on the current legislation in the country where it is located. For example, in Germany it is stipulated that it should not be charged for this change while in Spain commissions are charged as there are no laws that prohibit it.
To change broker, you must first find out what the cost of that change is, as many institutions charge commissions for the entire process. It is best to inform yourself well with your broker provider so that you do not get any surprises.
✨ How long does the process of changing broker take?
You should know that the change of broker takes time, so it is necessary to be ready for the duration of this process. If the brokers operate in the same country, the time can be up to 2 weeks while, if it is international, the time can be extended.
In the same way, you should know that while the broker change process is being carried out, your account will be frozen. Namely, You will not be able to operate or make investments during this time because the change requires readjustments and paperwork.
✨ What about my old account?
Here there are two options, the first is to keep the account, although many do not see this option as logical because for something you changed. In this case, you have the right to resign or request the cancellation of the account with your previous broker; It is recommended to do so if they charge you an annual commission.
Once the cancellation of the account has been requested, the previous broker is obliged to cancel it, that is, suspend it and then delete it. This in order to offer security and certainty to users. that they can trade their new broker without conflict.
4 comments on «What is the best broker to make my investments?»
Very good days. What should I do if a person has my BINANCE passwords and username and is using it and I cannot access it to change them??? It is urgent!!!
Hello Oscar, perhaps you should try to change the password, enter the registration or access phase and put your email and click under login where it says: Forgot your password? and from there I understand that they will ask you for data so that they give you a new password
IF THEY WERE SO KIND TO INDICATE ME 2 RECOMMENDABLE BROCKERS THANK YOU
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