How to Open a Trading Account at a Brokerage Firm

Video Transcript

"My name's Phillip Beningoso. I'm an investment professional, and I'm going to be discussing how to open a trading account at a brokerage firm. Opening a trading account at a brokerage firm gives you a range to be able to purchase a full gambit of securities there, whether they're stocks or preferred stocks, mutual funds, bonds, and a variety of other different types of investments. Most firms that are brokerage firms carry these full gambit of investments. But it's very important that you choose one that is right for you. Let me take you through a few steps that can make this process a little easier for you. Step one is to call several firms and to discuss their types of accounts with them. You can get the broker of the day, and he can give you a great deal of information about that new account that you'd be interested in opening. Two is to ask each brokerage firm about the firm's minimum deposits that are required and any information that would be pertinent to you about the account -- how to fund it, what it costs to fund. Inquire -- which is step three -- about any fees that the broker is going to charge you and if they are negotiable. Four, thoroughly discuss what costs, such as commissions, are negotiable. Five, review the information you have gathered and rank the top three that are most important to you. Six, to call the firms that are top rank and make an appointment to discuss these accounts with them. Make sure that you feel comfortable with those accounts and the firm that you're going to be doing business with. Seven, choose the firm that you feel offers the most resources to you. If you like to trade online and you don't want to be bothered by a broker, there's a variety of firms out there that can provide this type of research for you and make it easy for you to trade on your computer. Maybe you feel more comfortable talking to an investment professional and want to gain some research from their type of a firm or what they can get for you. It all depends on what you feel comfortable with. Eight, to take home the documents that are required for signing and opening up an account. Nine, open up your account only after you have had all your questions answered and that you feel very comfortable with the information that has been provided to you. And most importantly, ten, to get copies of all the information that you've signed. Any information that's provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. Any investments or strategies mentioned here may not be suitable for everyone. My name's Phillip Beningoso, and I'm an investment professional."