Opening a stock trading account is a pretty simple process once you know what you are looking for. With stock trading accounts you have a couple different options to explore. You can go with a traditional stockbroker, or an online trading site. Many traditional brokers are offering online services as well. So lets explore these options, and see how to open an account.
With a traditional stockbroker you are going to have a human to speak with and run investment ideas by. They will also make recommendations to you about when you should buy and sell. Opening an account with a traditional stockbroker will require a deposit to be made to an account with that firm. Each firm will have a minimum balance required to open the account. You will also have some paperwork to fill out.
Opening an account with an online stockbroker follows the same principals as using a traditional broker. You will be required to have a minimum balance, and won’t be able to make any trades until your check or transaction clears. You may also be required to print out a signature sheet and either mail or fax it back, to the company with which you created an account.
Regardless if you choose to open a traditional account, or an online account there are a few things that will make opening one easier on you. The first thing you are going to want to know is what services you will require. This will play a pivotal role in which type of account will be better for you. If you are looking to get recommendations for stock picks, and to have a person available to explain things to you then you will probably want a traditional broker. Also keep in mind that with a traditional broker you will be paying extra per trade.
If you are a do it yourself type of person then an online broker will probably be better. The cost per trade is dramatically less, because they offer only the most basic information you will need to decide on your trades.
The next thing you will want to have when opening either type of account is a nice sum of money. This will be needed for your initial deposit. Doing research will on different brokers will show what their minimum balance requirements are.
Having a copy of your identification will also help speed up the process of opening an account. Some brokers may require it just so they have a way to verify that you are who you say you are.
No matter what type of account you decide on, do your research to make sure you are getting what you want.