How To Open A Stock Brokerage Account (And Receive 3 Free Stocks!)

Does it feel like choosing the right brokerage account is a difficult process?

I'm going to show you the easy way to open a stock brokerage account so that you can freely buy and sell stocks.

The information that I share with you will be geared towards those who live with in the U.S. However, I do understand that some of you live internationally.

The good news is that there are a lot of stock brokerage accounts in the U.S. that allow international brokers to set up accounts with them, like the one I'm about to show you.

If you want to know the best stock brokerage options that will set you up to win, keep reading!

Watch the video below:

(Click here to watch on YouTube)

Are you ready to open a stock brokerage account? CLICK HERE to get 3 FREE stocks (valued up to $1,600) on WeBull when you deposit $100!

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This is your step-by-step guide to opening a stock brokerage account.

If you're a beginner investor, you may be wondering whether or not it's the best time to invest in the stock market. The Coronavirus pandemic has resulted in a global recession. This has created a lot of panic amongst investors. Whenever there is a dip in the market, people tend to sell their stocks out of fear.

This presents a golden opportunity to invest in stocks, by buying high-quality stocks and getting the benefits of low prices. In the words of Warren Buffett, “Be fearful when others are greedy, be greedy when others are fearful”. This is the investment approach that I take.

Now that you know it's a good time to invest in the stock market, let's talk about what a stock brokerage account is and how it works. A stock brokerage account is a specialized financial account that lets you buy and sell different types of investments. While all accounts serve the same purpose, there are some things that you need to be aware of when deciding which one is best for you.

Here are 11 factors that you should consider when choosing a stock brokerage account.

1. Government Regulation

Firstly, make sure that the stock brokerage account you choose is regulated by the government. In the U.S. you need to register the account with the Securities and Exchange Commission (SEC). I also recommend that you ensure the account with the Securities Investor Protection Corporation (SIPC). This way, if anything happens to the stock brokerage company, your money will still be protected.

2. Investment Goals

Secondly, figure out what your investment goals are. Do you want to invest to plan for your retirement? Are you investing and holding over the long-term? Are you day trading? Do you want to trade options, futures, foreign exchange, or cryptocurrency? There are many different types of investments.

Some brokerage accounts may be more beneficial than others, based on what you want to achieve. Don't wait too long to decide what your investment goals are, as this will create complications down the road concerning the investment decisions you make.

3. Commission and Fees

Most accounts have zero commission so you don't have to pay anything for buying or selling a stock. However, there are some accounts that have fees. One of them is called Interactive Brokers. I pay a fee ($1) for every trade that I make. It's not a lot of money, but it can add up over time.

You may be wondering, “How do these brokerage accounts make money?” The backend. Oftentimes, a brokerage account acts as a bank. Brokers make a lot of their revenue by investing or loaning out money to clients. In fact, some brokerage accounts act as a savings account. You can make interest on the cash that you invest in an account.

4. Paper Trading

You want to determine whether or not a stock brokerage account allows paper trading. This gives you an opportunity to practice buying and selling stocks with imaginary money before using real money. Most accounts allow this, but this is something that you want to look into.

5. Minimum Investment

Explore what the minimum investment is to open a brokerage account. For most accounts, the investment is zero. However, there are a few that require a minimum investment fee, like M1 Finance.

6. Research Capabilities

Each stock brokerage account provides a different level of research. As an investor, you want to research companies before you invest in them because some are better than others. I go to Yahoo Finance to do my research on brokerage companies.

7. Fractional Share Option

Some accounts, like M1 Finance, allow you to buy fractional shares. This means that you can buy a fraction of a share, rather than the full price of a share of a company. For example, Amazon is currently trading at over $3,000. A lot of people don't have that kind of money to invest. Having 30% of your portfolio in one stock is risky and may result in anti-diversification.

8. Foreign Trading

Trading internationally opens up a world of investment opportunities. Leveraging a variety of different currencies puts you in a great position to diversify your portfolio. I hold both U.S. and Canadian currency. I trade on the U.S. markets and exchanges, as well as those in Canada which I highly recommend.

Keep in mind that I've been investing for a long time now. Start small, but know that this is an option down the road.

9. Margin trading

Some brokerage accounts allow you to open up a margin account. This means that you can borrow money and take out a loan from the account. You do have to pay that money back and there is an interest rate on that. If you're a beginner, I wouldn't recommend doing margin trading because it's risky. However, if you're a more advanced investor, this is a great option.

10. User Experience

Every brokerage account has a different user interface. Your experience of an account will be determined by the overall layout of a platform. Some platforms are more advanced, like Interactive Brokers. This platform can be intimidating and hard to understand, especially if you're new to the world of investing. To be honest, it's not the most user-friendly platform.

If you're a beginner, I encourage you to start with a simpler platform, one that has zero fees and commissions. WeBull is a great beginner-friendly platform. Keep in mind that if you want to move to a different account over time, you can transfer all your positions over. There is a fee for doing this, but it's possible.

11. Customer Support

The biggest platform accounts, like Fidelity, TD Ameritrade, and Charles Schwab have great customer support. It all depends on what your preference is. If you want someone to hold your hand through the process, you definitely want to take advantage of customer support.

Watch the video above where I do a screen share and walk you through a step-by-step process of how to open a stock brokerage account using WeBull!

BEST STOCK BROKERAGE ACCOUNTS:

WeBull is a commission-free stock trading app that is offering 3 FREE STOCKS for new signups
Robinhood
Vanguard
Interactive Brokers (U.S. and non-U.S. residents)
Invest for FREE with M1 Finance
TD Ameritrade
Charles Schwab
Fidelity
ETrade

INVESTING RESOURCES FOR BEGINNERS:

This is how to open a stock brokerage account!

If you're interested in learning more about how to invest in stocks, I encourage you to check out my Money and Investing Mastery playlist on YouTube. Inside my videos, I talk in-depth about how the stock market works and how you can diversify your income. Investing is the best way to grow your wealth over the long-term and secure your financial future.