How to Open an Online Brokerage Account

1. Determine your degree of investing knowledge. Do you need someone to help you decide on which stocks to buy or are you capable of picking stocks on your own? Do you need a full service broker or a discount broker? JD Powers has a comparison of online brokers at this address:http://www.jdpower.com/finance/ratings/online_investment/index.asp

2. Based on your needs and level of compentence, decide which broker is best for you. Visit http://www.gomez.com for an up to date comparison.

3. Decide how much money you want to put into your account. Minimum account balances vary from broker to broker. Scottrade will allow you to open an account for as little as $500. Some people start with thousands. It is really dependent on your financial situation and how much you feel comfortable with investings.

4.Requet and account application. Most brokers have an online application but you will still have to sign some paperwork and send it in. After receive the application, fill it out. If you have any questions, call the broker and they will answer it for you. Send in your completed apllication with your initial deposit and you are now ready to start investing.

Tips

Never put money into a brokerage account that you might need. You need to look at your brokerage account like a savings and investing account. The money will need time to grow. Only put money in your brokerage account that you don't need.

Focus your time and efforts on picking good stocks. Don't worry about commissions. Never trip over pennies on your way to dollars. You will not get broke paying commissions. But you can get broke buying bad stocks.

When first starting out, you may want to pick a broker with telephone service and online service. In case you have any problems, you will be able to speak to someone.

Follow these instructions and you will know how to open an online brokerage account. Investing Articles Home