What Does it Cost to Open a Brokerage Account

by kelly on June 9, 2013

If you are new to investing, a lot of people would advise you to get started by opening a brokerage account. However, the first thing that you should know is how much money you should put aside to get you started with this investment account.

How to Get Started

Some people would normally rely on brokers to do all their investment deals for them. However, not all starting investors can actually pay for commissions. Or at the very least, not all people are willing to spare money to pay for a middleman. This makes sense, since it is not necessary to put up a personal policy to pay someone else that you should be spending for yourself.

If you don’t have a lot of money, a great way to get started is to go to an online brokerage site that will get you started up with your account. Initially, all you have to do is fill up some forms telling the company about yourself, link the account to your money account, and fill it up with funds later.

The Money Part

Once you have decided to open up an account, here comes the issue of monthly fees and minimum balances. Some brokerage accounts would require you to have $1000 minimum balance. To many starting investors, that is a lot of money. If you are opening up an online account, Betterment offers a minimum of only $100 a month charge, without having to maintain a minimum balance; to get more details how Betterment works and what they charge you should read this review from BestRatesIn and see if they suit your investing needs. If you are reluctant, they throw in a free 30 day trial for your account, and if you still like them after a month, that’s the only time they will begin automatic charges to your bank.

Good brokerage firms face that a lot of those who want to make money out of investing do not have an idea how much they should step aside. Etrade is laudable for putting up a page in their website that allows its users to fill it up with information such as the spare money that they have and how much time they have to wait. Etrade also extends help to their users by getting the information about their trading experience and what are they going to spend the money for. Essentially, once you go to their site, they will offer a step-by-step scenario based on the information you give them, making your experience a customized brokerage account according to your needs. They would require a minimum of $500 for you to invest. Read their review at BestRatesIn.com.

If you are going to get started with a brokerage account, it is important that you have an income that can support automatic charges. A lot of automatic monthly charges to your banks may be relatively small if you have an online brokerage account, but they may pile up on top of other fees that you are already paying, such as credit card fees and utility bills.

Online Brokers That You Will Want to Look At

Trademonster is one of the popular names in the field of online trading, and according to reviews, they are aimed to change the face of trading. They allow you to sell mutual funds for free, and they throw in no-fee IRAs. However, if you are looking to experience their way of trading and get a hold of their trade education tools and their trading services, they require $2000 minimum balance.

Your better option, as it seems, is Tradeking. Tradeking offers similar services, and people love them because they do not require any minimum balance to join. They also offer service rates. Yes, if you are ever going to want a broker to help you, get one that will not charge you with hidden fees. If you should ever get charged, opt to pay for the lesser cost. However, you cannot partner with international investors on your account, and you have to go through shorter after-hours trading time if you go with them. Read the detailed review from BestRatesIn.com.

Mobility

Another thing that costs money when you get started on investing is transportation, and essentially, your need to be present if you should ever want to make a trade. Historically, that is what brokers are for. Because trading eats up time, brokers provide you a number of reasons why you need to keep their commissions in mind when you open up an investment account.

Thanks to technology, trading for your choice of products is made more efficient, and you can actually make a trade wherever you are. Optionsxpress makes up for this experience, thanks to their intuitive mobile app that allows you to trade for your favorite products while on the go. At the same time, those who do not have time to attend seminars on how to boost their trading knowledge can use their all-in-one platform for added education. They do not have a minimum balance required to open an account, but they strongly suggest that you should have enough money to get started with trading. You would really want to know more about OptionsXpress, here is BestRatesIn’s informative review.