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What to look for when opening a brokerage account for a beginner?

Personal Finance & Money Asked on July 16, 2021

I am John and I am 18 years old. I am looking to open a brokerage account in Australia. My question is what characteristics should I look for when opening a brokerage account as a beginner?

One Answer

Brokers offer many features but each broker doesn't offer all of them. I think that a beginner would look for basic needs first:

  • Low/no commissions
  • No hidden account fees
  • Good customer service including tech support
  • A stable platform with few service outages
  • Educational resources
  • Good charting
  • Prompt execution and prompt account updating

A more experienced investor/trader might be interested in:

  • Fractional shares
  • Low margin rates
  • Portfolio margin
  • Good option analytics
  • Trading algorithms beyond basic stop orders
  • Real time news
  • Effective at borrowing shares for shorting
  • Stock screeners
  • Free dividend re-investment

Answered by Bob Baerker on July 16, 2021

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