Guide to choosing securities companies and open accounts

Guide to choosing securities companies and open accounts

When you start to get used to stock trading, the first thing we have to do is open an account at a securities company. Then, we will see a bunch of the term 'mystery' such as full-service Brokerage Firms, discount Firms, wire houses, boutique Firms ... So in terms of how significant and how they differ ?

The stock brokerage firm in the world today is divided into two main groups: full-service Brokerage Firms (roughly translated as companies 'aggregate') and discount Firms (firms 'specialized').

When deciding to use the services of a company 'specialized', you can get 2 types of services are only execute (execution order) and payment (clearance) to buy / sell (buy / sell order) of you have been 'matched' (matched) with one or more other orders. One of the main advantages of the companies 'specialized' as commissions (Commissions) is less than about 1/4 to 2/3 compared to the case of companies 'general' (Commissions paid for services Firms are of discount from a quarter to two-Thirds of lower coal những full-service Firms). You should only use the services of this company if you are a keen investor, able to capture and analyze information in a quick and accurate way. A number of specialized companies is very popular today, Charles Schwab, Lombard.

The companies 'integrated', in addition to providing two types of services mentioned above, also provides other services nh ¬ u: releases investment research situation (Investment research reports) by the analyst area of ​​research preparation room, providing asset management services, investment advice, to help establish the financial estimates, advice and measures to reduce or avoid taxes for customers. Today, the term 'service broker' (Brokerage service) are gradually being replaced by the term 'financial services' (financial services) by the services brokers provide clients increasingly expansion. The companies 'aggregate' is divided into the following types:

• Wire houses: the company offers a wide variety of investment tools (a wide array of vehicles Investment) for clients and mainly drink ¬ t of these companies are private investors (individual Investors), although they also serve investors have held (Institutional Investors) and conduct their own trade (trade inventories for Their Own). Merrill Lynch, Dean Witter Reynolds, Shearson / Hutton, Prudential Bache, Smith Barney is the company under this category.

• Specialized Firms: is the only company specializing in providing services related to one or a handful of investment instruments. Lebenthal & Co.. is a very well known company specializing in providing services related to municipal bonds (municipal bonds).

• Carriage trade houses: this is so only from specialized companies 'closed city' in New York City. Customers of these companies have been carefully selected and are customers 'sop'. Want to open accounts at securities companies, you necessarily have to be the introduction of the current customer. The services these companies offer are highly personalized to suit each client. The big names like Morgan Stanley, Donaldson Lufkin, Bear Stearns are of this type.

• Boutique Firms: this is the term used to refer to both companies are characterized by a carriage trade firm had characteristics of a wire house. The services of these companies also offer personalized nature as the carriage trade houses. For drink ¬ t of the company's investors have average incomes. Some companies of this type is Grunthal, Butcher and Singer, FS Mosely.

Each model stock companies have advantages ¬ nh is entitled to its own views. The effect achieved is that you use the model of how the actual situation of their company.

Selection of securities companies:

Currently there are many securities companies operate. However, the company you choose to open an account must meet the following factors:

- Good liquidity

- Good support (provide full and timely information on customer request)

- Good quality of service (offline + online transaction facilities streamlined, less frequent technical issues)

- Good Privacy

- Having good broker team

- Low transaction fees (currently the lowest on the market 0.15% / transaction)

I have some stock after the company recommends you consider: FPTS (services, good security, low cost), USD (the higher margin loans, low cost), MBS (+ brokers supported good ), HSC and SSI

After selecting the appropriate securities company we started to open accounts. Now there are two ways to open an account:

1. Open account directly: Bring photo identification to exchange securities company during working hours

2. Open an account online: The website you refer to the company's stock you choose.