We all know that stockbrokers represent an indispensable part of the trading process. They are, as people like to say, middlemen, guys whose main role is to mediate between stock exchange and investors (individuals and companies). So, if you want to take a part in this business, the first thing you will have to do is to find a broker you can trust, like Etoro. He or she will be your adviser and associate in this uncertain world of stock trading, where even the slightest change can affect the final result.
This is why you have to choose wisely. After all, your money is at stake here and you are the only person in this process who can lose money. Here are a few suggestions you should take into account when choosing your stockbroker.
Probably the first thing that people think about someone who wants to be a broker is that he need to have some kind of a college degree. But this is not the case Higher education is not needed here. On the other hand, almost all quality brokers, Etoro included, have a certain level of education, especially in the finance and trading. The same as in other types of jobs, knowledge is essential in this business.
While formal education is not required, every broker must be licensed and must pass so-called General Securities Registered Representative Examination. So, the license is the first thing you must check if you want to make a good choice. If a person you want to hire doesn’t have such document, you have to forget about him and continue your quest for the perfect broker.
The second very important thing here is to decide whether you want a full-time broker or part-time (discount broker). This decision will depend on your needs and goals you want to achieve in trading. If you want to invest big money and make this to be your regular job, then you will have to make a deal with full- time broker. In this way, he will be at your service 24/7, which is extremely important for the security of your investments. Almost all brokers will charge their fees after every transaction. Of course, there are many options of payment here, including stocks, bonds, insurance, derivatives…
In the situation when people do not trade often and when their portfolio is limited, probably the best option is to join Etoro or even embark on hiring a “discount” stockbroker. These guys charge lower fees and represent the ideal solution for part time investors.