How To Open A Brokerage Account 2021 | Step by Step For Beginners

Показать описание

Want to start investing, but didn’t open a brokerage account yet?
Here's a step by step guide for beginners on how to open a brokerage account in 2021.
Choosing the right brokerage account can seem like a difficult process, but it doesn't have to be.
In this video you’ll learn what type of account you need, what to compare between different brokers, how to apply and fund your account, and finally start investing!

Please support the channel:

Investing platforms:

NEXT VIDEOS TO WATCH:

Best Investing Books
Best Personal Finance Books

My GEAR:

DISCLAIMER
Pls keep in mind that everything expressed in a video is my personal opinion provided for education and entertainment value only. I am not a professional financial advisor. All decisions should be done solely by you after own research. Please, always do your own research (it is worth it!). Also there are affiliate links in the description that allow you to find items and support the channel at no cost to you. Thank you for your support!

Timestamp:
0:00 Start Here
0:25 Brokerage account: Determine the type of brokerage account you need
2:30 Brokerage account: How to compare the costs and incentives
3:32 Brokerage account: Consider the services and conveniences offered
5:12 Brokerage account: How to decide on a brokerage firm
5:34 Brokerage account: How to fill out the new account application
6:04 Brokerage account: How to fund the account
7:22 Brokerage account: How to start researching and making investments
8:00 How to invest for beginners

#stoXpert #howtoinvest #brokerageaccount

1. Determine the type of brokerage account you need
What are your investment objectives? If you simply want to invest for a rainy day or for a certain relatively near-term goal, and don't necessarily want your money tied up until you retire, a traditional brokerage account is the way to go.

2. Compare the costs and incentives
These days, many of the biggest discount brokers offer commission-free trading. They may also offer you a discount to reward you for certain actions, such as trading at a high volume or maintaining a savings account with the same company.

3. Consider the services and conveniences offered
Pricing isn't everything -- especially for new investors. Of course, all other things being equal, it's best to find the lowest price, but here are a few other things you need to consider when picking a broker:
- Access to research
- Foreign trading
- Trading platforms
- Convenience
- Other features
This isn't an exhaustive list, so before you choose a broker, be sure to spend some time on its website exploring what it offers.

4. Decide on a brokerage firm
You've gathered your information about various firms' costs, fees and they conveniences they offer. For each brokerage, you should weigh the pros and cons as they pertain to your investment objectives, and determine which broker is right for you.

5. Fill out the new account application
You can apply to open a new account online. You'll need some identifying information, such as your Social Security number and driver's license. You may need to sign additional forms if you're requesting margin privileges or the ability to trade options, and the broker will need to collect information about your net worth, employment status, investable assets, and investment goals.

6. Fund the account
Your new brokerage will probably give you a few options to move money into your account, including:
- Electronic funds transfer (EFT)
- Checks
- Asset transfer
- Stock certificates

As a final note, when funding your new account, be sure to keep your broker's minimums in mind. Many have different minimums for taxable accounts and retirement accounts, and they also may have different minimum requirements for margin accounts.

7. Start researching investments
Congratulations on taking the initiative and opening a brokerage account -- your future self will thank you for taking this important step on the road toward financial security.

Now comes the fun part: investing in stocks. Before diving in, it's a good idea to spend some time learning the basics of how to responsibly choose stocks, bonds, and/or funds, as well as how to create a well-diversified portfolio.