What Kind of Features Should Your Brokerage Account Have?

If you’re planning on getting started with stocks and securities, one of the first things you’re going to need is an account with a brokerage company. This is where you’ll buy and sell assets with the help of a professional. It’s also where you may be able to track movements in your chosen markets and practice your strategies using paper and demo trading accounts.

For many beginners, choosing the right account provider can seem like a complex process. However, the reality is, it’s often much easier than you’d think. Just as there were study guide websites to help you in school, there are tons of online resources to help you know what to consider in this instance as well. Today, we’re going to look at some of the most important features you’ll need to consider ensuring you’ve made the right choice with your account vendor.

Specific Features to You

First, before we look at the most common features to evaluate in your brokerage account, let’s consider some capabilities which may be specific to your needs. To ensure you’re making the right choice, consider the goals of your trading efforts in advance, and use them to guide your assessment of various different companies. If you’re planning on getting involved with penny stocks after reading a comprehensive trading guide, you might need to look specifically for brokerage accounts that enable access to these specific trading environments. Not all brokerage companies will be able to give you the same selection of low-cost assets to choose from. It’s also worth asking yourself whether there are any specific features that matter most to you, such as the ability to take money out of your account as quickly as possible when you need it.

Features for All Accounts

Once you’ve considered your specific needs, you can begin to look at the features which apply to every account such as fees. The cost of your account will influence how much you can actually earn from your portfolio in the long term. The cheaper the account, the better. Other things to consider include:

• Technology: How easy to use is the website, application, and other tools available from the brokerage? If the interface is complicated, you’re going to have a harder time making the most of it, particularly as a beginner.
• Education: Can your company give you resources to help you improve your chances of success? Are there webinars and tutorials available, or access to advice when you’re looking to learn about investing? You might even want to access tools for analysis and research within your account or use paper trading to practice your skills.
• Options: Many brokerages offer different options for your investment opportunities. For instance, you might be able to access no-fee or low-fee mutual funds and ETFs as investment options. You could also consider using some accounts for your pension investment options via your employer’s 401k, as well as for your personal portfolio.
• Ease of use: It should be simple enough to sign up for the account you want to use and access it whenever you need to. A complicated account just makes it harder to build your portfolio in the long term.

If you think you’re going to need support from the brokerage team from time to time, it’s also a good idea to look into the communication and contact options provided by the team. Are they suitable for your needs, or do you need a higher level of customer service?