Investing online just got easier. But choosing brokers to do this is not much, however, it is essential. The future profitability of the investment depends to a large extent on this.
Before hiring an online broker, an investor should analyze a series of factors. The first is about your safety and supervision.
To discover if it is reliable, the inverter must be investigated On the CNMV website Has the mandate to provide investment services.
Experts advise Avoid middlemen in tax havensBecause the risks assumed when hiring them are greater.
Ago Lap attorneys Recommending that special attention be paid to operators supervised by very lenient regulators, such as FCA in the UK, CYSEC in Cyprus, and ASIC in Australia, since In the event of conflicts, it is very difficult to make claims.
It is also very useful to consult the opinions of the entity’s customers in forums or blogs and to browse its website Check whether the information you provide is transparent, If the details of the terms of the negotiation and if it has channels of communication and demanded to go to it if there are incidents.
Another important factor before choosing a broker is knowing which products it is allowed to work with and whether it adapts to the investment that the future client wants to make.
It is advised, according to experts, to allow access to a variety of assets such as stocks, currencies, commodities …, derivatives, CFDs, ETFs, mutual funds, futures and options.
It is also convenient for you to work in many markets That an investor can access.
Commissions are another aspect to consider. The most common ones are those for buying and selling, which can be fixed by operating or variable by a percentage of the money invested; That custody for maintenance or to collect profits.
Generally speaking, commissions for online brokers are lower than those of banks.
The investor should analyze his investment strategy to find out which broker is interested in according to the commissions he invoices.
If your idea is to acquire stocks and hold them for the long term and collect profits up to the moment they are sold, you would be interested in a broker that does not pay custody commissions or dividends.
On the contrary, if the strategy consists of carrying out several operations to sell and hold securities, although it will be important for the custody commission to be as low as possible, then you will have to look for a broker with adjusted buy and sell rates.
Minimum arithmetic and tools
It is common for a trader to require a minimum amount to open an account.
You usually oscillate between 100 and 500 eurosBut there are those who do not have a minimum and others that this minimum raises it to 10,000 euros. The investor should choose what best suits his investment strategy.
It should also contain tools that help an investor manage their portfolio, which provide real-time information and provide daily and weekly reports.
Customer service is essential when choosing an operator because It will facilitate the resolution of accidents that arise It will provide information to the customer on the uncertainties that may arise in relation to the markets.
Thus, before choosing an online broker, the investor should analyze the assets he wants to operate in, the broker he negotiates, if he is regulated, that his commissions are not high and that he has good customer service.