Choosing an Online Broker for: New Stock Traders!
There are lots of reasons why you may want to start trading stocks online, the biggest one for me was…
Being disappointed in how long it takes for my savings to grown at my bank!
But the issue is, you’re new to the game, and knowing where to start can be a puzzle in itself…
Well, I have been trading for over 10 years, and I can tell you that there is way too much fluff to choose from and the biggest learning curve you should be focused on is not how to use these online broker apps but how do I get better at understanding trading.
You won’t be able to do this if you are spending all your time learning how to use your online broker.
There are 2 things you need to know when looking for your online broker.
Find an online broker that makes trading super easy
And do it as cheaply as possible!
There may be a third to know, but it is separate from finding an online broker.
Learn as much about trading as you can,
specifically, learn about the type of trading that you want to do.
Because there is a lot to learn about trading, the last thing you need is an online broker that complicates things with an app that makes trading harder.
First:
Choose an online broker that is
easy to use.
This can become difficult when there are so many websites and YouTube channels that do comparisons and they are simply trying to sell you on their link, specifically the link that will make them the most money. Some have legitimate information while others are simply ranking them based on referral fees.
Brokers promoting bells and whistles are simply selling you on something that a new investor does not need. The reason that I say this is because these bells and whistles all take time to learn and understanding how to use correctly and efficiently, this takes away from learning the basics of trading. Remember you are trading so you can have control, do not give it to the app.
You will be much better off researching a book that is
specifically written to explain the type of trading you would like to be doing.
An online broker should have easy signup, access, money transfer, screen flow and trading. If you find it difficult to maneuver from one page to another or to complete a trade…
Find a Different Broker!
Believe me it is easier to try multiple brokers than it is to continually trade on an app that is cumbersome or even confusing.
Second:
And probably the most important for a new stock trader who is starting with a smaller amount of money…
NO FEES!
I cannot stress this enough. Fees will kill your dream of trading simply because fees add to the hurtle of making a profit. Rather than profiting from a 1 cent gain you will need to have a big enough gain to overcome the fees charged before you start making a profit.
INFACT, a trade can look profitable because the stock went up but if you do not have enough of a gain to overcome the fees…
You will LOSE MONEY!
So, if you cannot get “no fees”, make sure that you get the lowest fees possible and always read the fee structure of every online broker because “no fees” advertising does not mean no fees on every type of trade. Make sure you know how they charge fees and how it relates to how you will be trading on their platform.
Recommendation:
If you are in Canada, I recommend Wealthsimple. I have been using it for years and even when I have been lured to a different planform for some amazing bells and whistle features, I keep coming back. It is easy to use, and I don’t pay fees on how I do my trading on their platform.
Check out the link below, we both get the same reward if you sign up and start investing,
and start-up is easy.
www.wealthsimple.com/invite/HWV4RQ
***Disclaimer*** I am not an advisor; I am simply sharing my real-world experience and knowledge to help new stock traders. Please do your own due diligence and ensure the choice you make is the best choice for your type of trading.
