How to Set up an Online Brokerage Account
The major online brokerage companies make it pretty painless to open an account and start buying stocks or other investments. The important decision is to pick a brokerage firm that provides the services you need. The ones with rock-bottom commissions expect you to do your own research. The larger online brokers will provide an extensive portfolio of investments and research tools.
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Instructions
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Select the online company where you want to open an account. Compare the services provided, commissions and fees and the minimum amount needed to open an account.
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Select Open an Account from the broker's website homepage.
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Determine which type of brokerage account you need. The choices are an individual account, joint account or a retirement account. Retirement accounts are for new or rollover IRAs.
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Complete the online application. For a cash account, the online application will complete the process. If you want to have a margin account, options trading or banking privileges, you may have to print out some documents for a signature and faxing.
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Fund your account. You can deposit money into a brokerage account by wire transfer, electronic ACH deposit or by mailing a check. Wire transfer is the fastest and most expensive. Setting up an electronic ACH link will allow you to add and remove fund from your broker account into your bank account. Electronic deposits can take up to four days to be available for trading.
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Tips & Warnings
The account application will require that you provide employer information. This is to determine if you are employed by a regulated securities firm.
Select a online broker with local offices like Schwab or Fidelity if you like to have help with your paperwork or need to turn in stock certificates.
Brokerage firms can charge pretty hefty fees to transfer out an account. Do your research upfront to select the broker that fits your needs.
Trading stocks online does not come with any professional investment advice. Make sure you understand the risks of loss before buying and selling securities in an online brokerage account.
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