If you’ve seen those videos touting the ultra-rich in their mega yachts and private planes or have read about a Wall Street fund manager making ridiculous seven figure salaries this year, you’re probably asking yourself “how can I achieve a similar state of fortune and success?” Finding the right broker is a good starting point for success as an investor/trader. You’d want your broker to have your best interests prioritized at all times otherwise you’ll find yourself losing money in the long run.
Facing the Dilemma
Today, traders and investors of all capital sizes, industries, and strategies are given a wide range of brokers to choose from. Add this to the myriad of trading platforms available from each broker and the dilemma starts to surface. With the abundance of brokers and platforms, a novice trader can easily find himself lost in what should be prioritized and what should be discounted as noise and ignored.
Asking the Right Questions
You’ve already asked the right first question, which is who to choose as your broker. The next questions will also be important as they dictate which broker you work with and what kind of trades you are limited to. Ask the right questions including how a broker operates. There are two main styles of broker operation – dealing desk and non-dealing desk. The latter is the more preferred style of brokering and is considered more fair towards the trader.
Creating a Criteria
Once you’ve asked the right questions both to yourself and to your prospects, the next step is to create a criteria. A list of criteria will help speed up the process of filtering out the range of options you have on the table. Create a criteria based on your needs and preferences. For instance, if you are looking for a broker with low-cost commissions, which is or should be one of your top three criteria, then going for a broker like Bcapital makes sense.
Testing the Waters
You don’t necessarily have to invest all your capital into a broker-provided trading account. Testing the waters is a more pragmatic approach to trading as it helps you establish a rhythm. Apply for and use a paper or demo account to avoid any real financial losses at least until you actually gain enough market knowledge to trade safely.
Researching High and Low
A reputable brokerage firm should have enough published material on them for you to peruse and base a decision from. Many brokers, such as Bcapital, will also have their own dedicated website that includes company information, educational material, and their products and services. Conducting thorough research using these websites can tell you all you need to know about the prospected broker, from their commission charges to their platform features.
The right broker is one that can provide cost-effective, fast, and accurate trade order executions while simultaneously helping you grow as a trader through high-quality educational materials you can incorporate into your trading strategy and round-the-clock technical support representatives who can help resolve technical issues immediately.