4

Opening a Brokerage Account

Many of you are eager to get started investing, and in this chapter, I show you how to open a brokerage account. As I said before, opening and funding an account is the fun part. Before you invest real money, however, I suggest that you read the entire book.

And now I’ll take you through the steps of opening a brokerage account.

Step 1: Choose a Brokerage Firm

The first thing you must do is to select a brokerage firm. This is an important decision because if you pick the wrong firm, it can cost money in unnecessary fees, commissions, and poor order fills.

There are three main types of brokerage firms, which I explain in detail.

Online Brokerage Firms

Online brokerage firms, which used to be called discount brokers, ...

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