Chapter 15
Your Key Vendor: Your Broker
IN THIS CHAPTER
Knowing what to look for in a brokerage firm
Choosing from the many brokers available
Watching out for scams
You can’t day trade without a trading account at a brokerage firm. It’s that simple. Although every trader needs one, and although the rates charged are similar, brokerage accounts are not commodities. Not only do different brokers offer different services, but most brokers also have tiers of services available for different types of investors and traders. You aren’t just buying a way to execute a trade but rather a set of services.
Some brokerage services will be worth the money and then some to you. Others will be inappropriate for your style. To help you get started on your research, this chapter covers the different types of accounts, with information on their features and benefits. After all, you want to make a good trade from the start!
Choosing a Brokerage
If you are going to trade, you need a brokerage account. What kind of broker you need depends on what you plan to trade (head to Chapters 2 and 3 for some of the basics of different types of securities and where they trade):
- If you plan to trade stocks, ...
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