Are you looking for a broker? A number of people are jumping on the online trading bandwagon in order to benefit from the lucrative opportunities. But, suggests that you don’t forget the role your selected broker can play in your journey. They are vital to the process and can have a major impact on your overall experience and bottom line. Therefore, it is a decision that requires some due diligence on your part. What should you do? Here are some tips that can come in handy for selecting your first broker:
- Shop around before you choose one
Who says you have to pick just one broker? Shay Benhamou suggests that you shop around first, which means set up trading accounts with a number of brokers simultaneously. Many of them may even offer you demo accounts that can be used for testing their services and features. These first-time accounts can be a way of testing the accessibility of a broker as well as your own strategies. When you are shopping for a broker, you may also want to look at price improvements and customer rating.
- Get a referral
Sure, you can easily make a list of brokers by running a Google search, but this doesn’t mean that any option will be suitable for you. Some brokers cater their services to experienced and advanced traders, while others target newbies and beginners. Instead of having to go through every single option, which will take you years, it is best to get a referral. Shay Benhamou recommends that you talk to a financial expert and ask them to give you a recommendation, based on what features you want to have and your background.
- Look for a demo account
As mentioned above, there are brokerages that offer a demo account to their clients and Shay Benhamou suggests that you prioritize a company that offers you one. No, it is not just because you want to check their services and features, but also because having a demo account gives you the option of testing strategies and practicing your trades with paper money. This can help you in making improvements and minimizing mistakes, thereby keeping your losses under control.
- Consider the instruments
One of the most important aspects of a broker that you have to take into account is their instruments. According to Shay Benhamou, you need to remember that not all brokers will offer you access to the same markets. Therefore, you should first decide what markets you want to trade in and then begin your search accordingly. Rather than making accounts with different brokers to access different markets, it is a better idea to open an account with one broker that can give you access to the markets you want. This can assist you in managing your trading account in a better way because it minimizes the chances of you missing out on something because you are unable to keep track of multiple accounts simultaneously.
- Accessibility and investor support
Another essential thing to look for in a broker is their accessibility and client support. says that you need to be able to contact the customer support of the broker within normal trading hours at the very least. The best option is to have phone support because it makes it easier for you to communicate, but having access to 24/7 chat support can also be a big benefit. You don’t want to be left hanging when you try to reach out to a company that holds 60% of your wealth. When you have a problem, you want assistance right away or it can result in a great deal of anxiety and stress. It is best to do your homework and ensure that you choose a broker that’s available and prioritizes customer support.
As you are just entering the markets, Shay Benhamou suggests that you also consider the educational resources a broker is offering to make the right choice.