Brokerage account how to make money. Brokerage account

Today we will talk about some of the nuances of working with financial market brokers. So, for example, a brokerage account is a client account that a company uses to conduct trading transactions on behalf of that client.

From this article you can find out what types and types of accounts there are, their characteristics and other qualities. We will not forget to talk about how to correctly and by what criteria an individual should choose a brokerage company for trading, so as not to fall into the trap of scammers.

Brokerage office	Min. deposit	Min. bid	Bonus	Demo account	License
Binomo	10$	1$	Up to 100%	Yes	TsROFR
FinMax	100$	5$	Up to 150%	Yes	TsROFR
Migesco	5$	1$	Up to 110%	Yes	TsROFR
Binarium	9$	1$	Up to 60%	Yes	TsROFR
24option	200$	24$	Up to 100%	Yes	IFSC

Leading brokers of the Moscow Exchange:

More about the brokerage account

All users who register on the broker's website receive a brokerage account. With it, they will be able to trade financial market instruments. Everything is opened at the expense of investors. The broker plays the role of an intermediary. It enables clients to trade on markets and exchanges and conducts their transactions. But all possible risks and losses are borne by the trader; the brokerage company does not bear any responsibility for this.

What the broker gets from this is a certain percentage of transactions made by users. Regardless of whether the trader made a profit or loss, the broker remains in the black.

How else can you answer the question, what is a brokerage account? It is something like a wallet created by a client at a brokerage company. A trader in his personal account can see the status of his account balance and the history of completed transactions. Brokers differ among themselves in the range of financial assets available for trading, the number of instruments that a trader can use, as well as the speed of processing transactions performed by the client.

Step-by-step guide to opening an account

Stage one. Which market to choose

This issue should be approached as responsibly as possible, since the amount of possible earnings depends on the decision made. In fact, answering this question is not so difficult; you just need to choose the optimal trading platform that is suitable specifically for your desires, interests and requirements.

You can work on the stock market, where securities trading is available, or engage in binary options trading on the derivatives market. Another option is Forex. Here, investors mainly trade currency pairs.

Stage two. How much will we invest?

Once you have figured out how to open a brokerage account for an individual with the chosen broker, you need to move on to the next step - determine the amount you are willing to invest to trade in the markets. Only the investor himself can give an exact answer to this question, since the size of the invested amount depends on his financial capabilities.

There is an important rule that should be followed when determining the investment amount - it should be comfortable and not ruin you in case of losses. Trading in financial markets always has a high risk of losing money.

An investor can significantly reduce the possibility of losses if he undergoes special training. It is better if the teacher is a professional trader with extensive experience in financial markets.

Stage three. Which broker is better to choose?

Now there are many brokerage companies, each of which offers its own conditions and tariffs. So everyone can find the most suitable option for themselves.

Stage four. Filling out an agreement to create an account

It will take very little time to complete it, since a minimum number of documents are required - these are copies of documents proving your identity, bank account details.

Many brokerage companies offer the opportunity to trade financial instruments not on a real account, but on a demo account. On it, the investor will be able to trade virtual money, that is, without the risk of losing real money. This is a great opportunity to hone your skills.

Stage five. Replenishing your trading account balance

This is the very last stage. You deposit a certain amount of money. All brokers offer a huge variety of replenishment methods, including online wallets, bank cards and other payment systems.

Classification of brokerage accounts

An investor who approaches business responsibly must correctly select the type of account that best suits his requirements and capabilities. There are several types of accounts available now.

By number of owners.

There are for one investor, that is, individual, and for several people - joint.

According to the method of cooperation between the investor and the brokerage organization.

There are 2 options: classic and confidential. In the first case, the investor himself carries out all operations and controls them. With trust management, transactions are opened by a broker on behalf of the client.

By types of transactions and trading opportunities.

In this case, 4 types of accounts are available:

• Cash – the investor works with the amount of cash that he himself contributed.
• Margin – a trader can borrow the missing amount of money to open an order from a brokerage organization.
• Option – the opportunity to trade binary options with the broker is open.
• Pension – allows you to save on taxes.

What is the difference between a bank account and a brokerage account?

Bank accounts can only be opened at a bank office. The client manages the funds, and the bank carries out various operations on his behalf. This account is protected by the Deposit Insurance Agency.

A brokerage account can be registered on the broker's website or in the office. The broker does not provide insurance.

Possible risks of trading in financial markets

The first thing you can do to lose money is to register with a company that deceives people. Unfortunately, there are a lot of scammers now, so to avoid this, you need to carefully study each broker.

Secondly, there is always a possibility of losing money invested in a broker. To reduce this risk, you should either take training from a professional or hone your options and other asset trading skills on your own. You should only trade according to your plan and trading strategy. The result – profit or loss – depends on the system.

Third, there is a risk that the company in which the investor invested money will go bankrupt.

What are the benefits of a brokerage account?

Firstly, a trader can realize himself, become a professional and earn large sums from a broker by trading binary options or other types of transactions. To become successful, you need to find a reliable broker, prepare well and find or develop the strategy that best suits him.

Speaking of reliability, check out the following scale:

Never open trades at random. Before opening each trade, turn off all emotions. Don't get euphoric if it turns out to be profitable. Thorough preparation will help you avoid mistakes. Figure out, for example, how to open a brokerage account in Sberbank, or understand what USOFR is, by the way, USOFR is the department for accounting for transactions on the stock market. All this may be needed when trading with any broker.

A wide range of assets and types of binary options are available for trading, so a trader is not limited by any framework, but can trade with a broker exactly those instruments that he understands better.

In conclusion, we can say that, as in any other areas of activity, you also need to work here, especially on yourself. Only then can you make good money by trading binary options, Forex or other markets.

Best Forex and Binary Options Brokers for 2020

10 USD Forex Club (Forex) 1999 CySEC, Central Bank of the Russian Federation 1 USD FinMax (Binary options) 2016 TsROFR 100 USD Grand Capital (Forex) 2007 FinaCom 10 USD

Brokerage in our country is represented by different areas of service provision.

For example, brokers can help clients find insurance companies, banks to take out a loan, and real estate that can be bought or sold at a profit.

However, there is an opinion that brokerage is an unnecessary direction, and paying brokers for services is a waste of money, since everything can be done without their help.

The essence of brokerage

The very essence of credit brokerage is that the organization helps a person who needs a loan of a certain amount of funds (both cash and in the form of real estate, the purchase of expensive goods, etc.) choose a banking institution, as well as a program that is ideal will suit his requests, needs and the expected result.

Due to the fact that in each bank the conditions may differ for similar programs, in some places they are more profitable and in others they are not. This is where a broker helps.

He analyzes different offers and determines which bank has the best program suitable for the client, and then makes all the arrangements.

What is the job of a credit broker?

The broker works in several directions. He establishes connections with banks, has his own acquaintances and even a certain influence in them, since he is in contact with the management of a particular banking structure.

Credit brokerage provides for conditional obligations between a broker and a banking organization, when both the first party and the second receive income from cooperation:

• the broker makes a profit by charging fees for services from clients;
• The bank makes a profit due to the fact that the broker brings to it reliable clients, who subsequently pay interest (or other payments) for the fact that they were given a loan.

A number of obligations between the broker and the bank still exist, since in some cases brokers become their clients, that is, brokerage is a kind of guarantor of integrity and return of money for the banking institution.

Another important function of the client’s assistant in selecting a loan for him is the correct execution of contracts and the quick collection of necessary documents.

For people who need to carry out the entire procedure urgently, and with a high chance of a positive decision from the bank, this is an ideal option.

Essentially, a broker is a representative of an individual or legal entity (depending on the form of lending required) who is the representative.

First of all, brokerage services include client representation, which can be comparable to legal practice. That is, brokers primarily take into account the interests of people, not banks, although they cooperate with both.

Payment for credit brokerage

You have to pay for brokerage services. However, it is important to remember that brokerage does not require prepayment.

Paid only after the banking institution provides the loan.

If no money is received as a result of refusal, there is nothing to pay for, since the broker was unable to fulfill his obligations.

Broker representatives often claim that payment is required in advance - you should not cooperate with such companies - they are most likely unscrupulous.

An agreement must be concluded between the borrower and the broker, and only then will your representative begin working under the actual search for a lender.

Why is brokerage profitable?!

There are several reasons why a broker's services are actually necessary:

• you can choose a loan program with suitable repayment conditions;
• can choose ;
• with the help of brokerage you can choose the best conditions;
• there is an opportunity to learn about all the subtleties and pitfalls that are usually present everywhere, but which are quite difficult to understand without external support;
• Credit brokerage is especially useful for those who have a negative credit history. If the broker agrees to become a guarantor, you have a greater chance of a positive decision;
• the broker will tell you what to take with you and how to behave;
• expensive loans may differ in price if the agreement includes one additional payment. A broker will help you avoid this.

It is important to understand that real brokers, not scammers, will never advise you to forge documents, obtain a fake income certificate, or provide incorrect information.

If you follow the lead of such organizations, you may encounter problems with the law, since you will be charged with falsifying documentation.

Before using credit brokerage services, you can independently analyze the different offers of financial institutions. The official websites of various banks will also help with this.

If questions remain regarding the benefits of certain programs and taking out a loan in the area of ​​interest, brokers will help dispel all doubts and help you look at the situation with real eyes.

The banking sector is gaining momentum very actively, because it affects not only economic and financial aspects, but is also a very profitable activity. This activity is a very large industry, which involves a lot of officials who are involved in completely different aspects of banking. One of the branches of this work is a profession such as a bank broker.

Who is this

A bank broker is an official who is an intermediary between the bank and a person who has ever taken out a loan and for some reason never paid it off. This profession, despite its short period of existence, has become very popular due to its significance and its way of solving problems with debtors. Such a significant industry appeared not so long ago, namely, it began to be used in Russia since 2005 and is actively working to this day. A banking broker thinks through a lot of specific tasks related to solving, obtaining loans and smoothly working with all the clients of the institution who wish to receive a loan.

Main areas of work of a broker

A bank broker performs a number of specific tasks related to working with clients who wish to take out a loan. Everything happens in several stages and has a certain sequence:

• When a client contacts a bank with a need to obtain a loan, he is sent to a specialist who listens to all the requirements and desired parameters on which the client would like and be able to take out this or that amount. It is the banking broker who analyzes the visitor and further selects the most optimal lending method for him. Having tried to fully satisfy his preferences, he provides assistance in obtaining a certain amount of money.
• Once the loan has been issued and is already in the client’s possession, it is very important for the bank broker to maintain control over it and monitor that the amount of payments is made on time and without any additional force majeure.
• If the client who took out the loan cannot pay it off on time, the broker is obliged to use methods of interaction and certain pressure on him in order to return the amount of money to the bank. To do this, he can involve conversations with a visitor, certain meetings, contacting relatives or friends, but the main thing is not to get carried away with violent methods; this has been strictly prohibited by law since 2016.
• Any banking broker is obliged to accompany the client through his loan, from the very beginning to the end, namely until the moment when all the money is returned to the bank account. At this stage, his work is considered completed.

Small nuances

Naturally, during a global crisis, there are often delays in loan payments throughout the country, but it is important to understand that the efficiency of a banking broker depends on this - whether he can handle his client from start to finish with dignity or not. It is generally accepted that an experienced and professional employee will be able to initially build the right tactics, issue the right loan to his visitor and achieve quick or timely payment without any problems, even if it is not easy. During the negotiation process, it is important to skillfully reach a certain compromise and achieve the desired result.

What are the benefits of being a banking broker?

It is worth considering exactly why this business is profitable, why brokerage is so popular and why it is so interesting.

Firstly, a broker is a person with a higher education who knows the essence of economics and knows how to make the right decisions in favor of his clients. In this case, you need to skillfully analyze the visitor, taking into account all his strengths and weaknesses, and ultimately choose a loan for him so that it is convenient for him to manage it, as well as pay the amount of money on time.

Secondly, a broker is an analyst who tracks the financial history of his clients, conducts an in-depth analysis of people not yet involved in credit operations, and accompanies them on all questions and problems that arise in the process of work.

And the third, no less important, criterion is that, in addition to this, a bank broker is a sensitive psychologist who is able to find humane and humane ways to influence the client so that he repays the loan on time or understands that he needs it.

Why is the work interesting?

A bank credit broker, like all other personnel, receives a certain profit, which is entirely formed due to his professional qualities. The fact is that such employees receive a clear, pre-negotiated percentage from each client who takes out a consumer loan for their own purposes. This is an important point. Bank brokers play a decisive role in consumer loans. And there is a completely logical explanation for this. A broker is not only a help in obtaining a loan and approval of an application, but also the formation of personal profit.

On average, a true professional manages to conclude up to 10-15 loan applications per month, and this will significantly lead to good results and decent payment. That is why brokerage is a very interesting and profitable profession in the modern world. Using the services of a bank broker is also easy. To do this, you just need to contact any bank, find a specialist and tell them about the exact conditions under which you would like to purchase a loan, he will be happy to guide you on all issues.

How to become a bank broker? Where should I start?

In order to start your professional activity in a bank, you will definitely need an economic education. This is the most important aspect. If you have an education, but not an economic one, but, for example, a legal or commercial education, you can use the services of special professional courses in the desired field. Fortunately, there are now a huge number of such activities, and it will not be difficult for you to find them.

The second thing you will need is knowledge and skills of communication and interaction with people; in this work you simply cannot do without it. You can also sign up for special preparatory training on psychological influence. In fact, this aspect is very important, perhaps, in any business, and not just in the banking sector.

Well, the last thing you need is the search for a suitable institution that needs such employees. There is no escape without a good job either.

Answering the question about how to become a bank broker, it is worth saying very briefly: yes, just like any other specialist. You need to have certain knowledge, be prepared for such work and look for a vacancy in accordance with your needs. And most importantly, be able to provide assistance in obtaining a loan.

What is a brokerage account: concept + classification. What is IIS? How to make money on a brokerage account? Opening algorithm + 9 criteria for selecting a brokerage account.

Making money online among young people is becoming more and more popular every day. A person has the opportunity not only to work on a flexible schedule, but also to receive money while staying at home.

There are a huge number of variations in obtaining such a profit, but the most profitable solution was and remains investment.

Today we will look at what a brokerage account is and why the average person needs it, and we will also explain how, by investing money in this area of ​​activity, it will be possible to achieve a stable profit.

Learn more about what a brokerage account is...

Cash payments are slowly disappearing into oblivion. Card terminals are becoming commonplace even for small shops in villages. This is not surprising, because the advantages of this type of payment for goods/services are obvious.

But what if your money generates dividends just by sitting in your account? Of course, the first thing that comes to mind after such a question is the option with a bank deposit. But this is not the only way. Next, we will delve into the essence of the term “brokerage account” and analyze what it is and how it is used in practice.

1. What is a brokerage account?

We all know about payment systems. So, a brokerage account is a personal virtual wallet that is opened for a trader to carry out trading operations on the stock market and other virtual trading platforms.

Trader– an employee of a brokerage company engaged in trading on the stock market and representing your interests on it.

Broker– a legal entity that is an intermediary between the investor and the exchange.

An account with a broker is created to make a profit based on speculative transactions with any asset of the exchange market. Roughly speaking, you buy at one price and try to sell at a higher price, thereby receiving 1-2% income on top of the amount spent.

The principle is simple and understandable to everyone, but if you delve into the essence of the processes, then beginners’ heads will definitely go spinning. You can read about the intricacies of trading on the stock exchange in other articles on our website. Today our goal is to understand the brokerage account and the principles of its operation.

Benefits of a brokerage account:

• Higher yield compared to bank deposits. With a successful combination of circumstances, the investor has the opportunity to earn up to 35% per annum.
• All insure the risks of depositors, but additional service fees may apply for this.
• Possibility of receiving additional income, in addition to dividends.

Along with the advantages of such accounts, there are also certain risks - bankruptcy of the broker or an unscrupulous company. If you want to reduce the likelihood of losing money to a minimum, be very careful when choosing brokerage services.

The concepts of bank and brokerage accounts should not be confused:

• In the first case, you contact a financial institution for the purpose of storing investments or conducting cash and settlement operations with them.
• The broker provides an account for performing trading operations on the exchange market. Its status displays data on the purchase/sale of assets and makes it possible to dispose of the balance at your own discretion at any time.

2. Classification of brokerage accounts.

The Investor Services industry provides a wide range of brokerage account services. Today, the classification of accounts depends on the type/method of working with investments, as well as the number of people for whose management this financial instrument is issued.

You can find more detailed information in the table below:

Category	Type	Short description
By form of payment, cooperation and type of transactions	Spot	Transactions are carried out using funds in the client's brokerage account.
	Marginal	Transactions can be carried out using broker funds to compensate for missing amounts.
	Optional	Allowing you to trade binary options.
	Pension	Allowing you to save on taxes.
By service methods	Classical	Provides for capital management by placing orders to the broker.
	Trustee	Involving the independent conclusion of transactions by a broker on behalf of the investor.
By number of account holders	Individual	Owned by one person.
	Joint	Open to several people at once. Divided into accounts with or without right of survivorship.

Each option has both its advantages and disadvantages.

With regard to classic, individual and joint accounts, everything is clear - the differences are reflected in the names themselves, but with the rest it is not so simple. Next, we will dwell in more detail on the most important of them.

a) Cash brokerage account.

The most common of those considered.

To conduct any trading operations on the stock exchange, an investor must have a universal payment method, which is a cash account with a broker.

With its help, a person can pay for absolutely any asset he chooses for speculative actions on the stock exchange. The average duration of transfers reaches three days from the date of application.

When purchasing assets using this financial instrument, you must take into account the cost of the purchase - you cannot go beyond the limits by purchasing in excess of the available amount.

It is most rational to use this type of calculation for a large number of transactions (5 or more). If the seller has not received money within the agreed period of time, he has every right to submit a petition to the investor’s broker for compensation for losses + the transfer of assets is not carried out, as such, at all.

b) Margin brokerage account.

A type of brokerage account where an investor can make transactions on the stock exchange using funds borrowed from a brokerage firm, which, like in a bank, have their own interest rates.

If the purchased assets lose value, the trader will have to compensate for the losses on margin out of his own pocket. In the exchange environment, such accounts are also called deposit or trading accounts.

How margin trading works:

1. A person opens a deposit and replenishes it with a minimum (or more) amount.
2. Depending on the leverage, which is the coefficient of increase in your capital, you increase your purchasing opportunities by the Nth number of times.
3. The investor trades assets and increases the inflow of funds due to increased rates on the exchange.
4. The profit is withdrawn to a cash account, and only part of the funds remains on the deposit, which is an amount above the minimum for making trading transactions on the exchange.

Opening trading positions is possible only if the deposit balance is in positive territory. When the mark goes below “0”, all transactions are automatically closed, the trading process stops until the next replenishment.

The margin account has the following indicators:

• Active balance is a floating value, which is obtained by deducting trading performance from remaining funds. The value is constantly active and provided to the investor in real time. With its help, it is convenient to calculate the overall profitability of your actions on the stock exchange.
• Total balance – displays the total amount of money that is currently on your deposit.
• Trade balance is a blocked part of money, which is a safety net in case of unsuccessful trading. Write-offs from this type of balance are made for each unprofitable transaction on the trading platform.
• Margin is a value that determines the number of positions that you can open at the current moment of trading. Calculated from the difference between the trading balance and free money in the account.

The main task of an investor when performing trading operations on the basis of a margin account is to ensure that the margin value does not become zero, otherwise all open positions will be immediately closed and further trading operations will be impossible.

In the terminals of brokerage houses, the approaching margin value to a dangerous level is often signaled in advance, so that the investor changes his strategy and can somehow get out of the deplorable state of affairs.

c) Trust brokerage account.

The main difference from other types is the transfer of rights to carry out operations on your behalf to representatives of the brokerage company.

This option is optimal for people who have money, but do not have the time/desire to trade on the stock market. A person just needs to transfer funds to the company’s account and receive a profit monthly.

The danger of using such accounts is the risk of being deceived by an unscrupulous broker. If you don’t pay any attention to your business, you will be charged much larger commissions than they really should be.

To avoid this situation, it is enough to check the statements 1-2 times a month (you can hire a specialist for this).

Regarding the pension account, it should be noted that this is a special type of settlement instrument that is provided to elderly people. The main feature is minimal taxation of profits from investments.

Not all brokers offer this service, so you need to search for suitable offers on the market in advance.

3. What is IIS?

In 2015, the Russian government decided to introduce a new type of account into exchange trading - individual investment accounts. The reason for this step was the popularization of investing in securities on the territory of our state.

Features of an individual investment brokerage account:

• implemented system of tax deductions;
• the maximum investment amount must be no more than 400,000 rubles per 12 months;
• funds can be credited only in national currency;
• spending funds is possible only on stock market assets;
• a citizen has the right to have only one IIS.

There is no risk insurance here, like on other brokerage accounts. The purchase of shares, bonds and other securities using IIS funds is possible only on domestic stock markets.

The main advantage of an individual investment account is also its partial weakness - tax benefits are activated only after 3 years of existence of the financial instrument.

The benefit itself is 13% of the invested amount. That is, with 300,000 rubles per year in the account, the investor will be able to return 39,000. Also, a person is exempt from paying taxes when closing the account itself and withdrawing funds from it.

These two deductions are incompatible - the decision to choose one of them must be made immediately when opening an IIS.

How to work with a brokerage account?

As we have already figured out, a brokerage account is only an auxiliary trading tool. It is not created for pure investment, but is used for the purpose of increasing capital and obtaining increased profits through speculative transactions on the stock market.

If your goal is not just to learn about this financial instrument, but also to start working with it, we recommend that you read the second part of our article.

1) Criteria for selecting a brokerage account + opening algorithm.

Having decided on the type of account, you can safely move on to the second stage - finding a reliable broker.

This matter is not at all simple, since as of 2018, more than 2,5,000 large and small brokerage companies were registered in Russia. Unenlightened investors have only heard about 2-3 of the largest ones, but, believe me, there are many times more brokers with favorable conditions on the stock market of our country.

To select a quality broker, follow the 9 golden requirements of an investor:

Reliability.

Both private and public organizations can obtain the appropriate license. The most stable institution was, is and will be the bank.

Although the cost of servicing such accounts is much higher here, you will not worry about the safety of your own investments.

Experience.

It’s unlikely that anyone would want to trust their money to a “sharashka’s office.” The broker must have at least 3 years of stable work behind him without negative reviews and high-profile scandals.

Possibilities.


Find out in advance whether the broker can provide you with access to the trading platform you are interested in.

The market is very wide, some areas are losing relevance (bonds), while others, on the contrary, are climbing the mountain (options). The right area of ​​trading is no less important than the trading skills itself.

Famous brokers prefer to independently modify the most popular trading platforms and customize them in accordance with the functionality that only they can provide.

If you do not trust such products, you can use public terminals.

More precisely, its price. Each account will have its own service charge. If you want to save money, look for options with a free start - the broker allows you to use the account for free from 1 to 3 months.

Minimum deposit.

Increased competition in the market encourages brokers to make ever greater concessions.

If previously the lower limit for entering the exchange market was at least 200,000 rubles, now you can easily start trading with 30,000-40,000 rubles in your pocket.

Lending.

This applies to margin accounts. The higher the leverage the broker offers, the more funds you can borrow.

Education.

If you are new to the world of investing, then the courses are just what the doctor ordered. Such services are provided free of charge at brokerage offices.

Often, with large deposits, they may even assign you a personal consultant with whom you can discuss controversial issues at any time.

Training accounts.

A very popular marketing ploy that allows you to test the trading terminal without losing real funds.

If you want to start trading efficiently, when selecting a broker, try not to lose sight of this point under any circumstances.

Following all the described recommendations, choosing a broker may take a couple of days or weeks. But, if you plan to seriously engage in this type of activity, such filtering is simply vital. Having made your final choice, you can proceed to the next step - registering a new brokerage account.

1. We choose a market for investment.
2. We decide on the volume of investments that you are willing to put into the brokerage account in general.
3. We select a broker according to the criteria described above.
4. We select the optimal type of account and fill out an application to open it with the broker.
5. We receive the details of the brokerage account and replenish it.

Next comes the most interesting part – trading. Do it yourself, or use trust management – ​​it’s up to you. But remember: if you have no desire to work in this field of activity, independent speculation on the stock market will not bring you much profit.

Real traders “live” this, therefore the income of such people is not a temporary enlightenment, but a stable phenomenon that brings good monthly profits.

Where is it safer to keep money: a bank or a brokerage account?

Saving money. Expert advice.

2) How to make money on a brokerage account?

The only type of work that can bring you good money is trading on the stock market. A brokerage account is a tool, you are the manager, and together it is a highly profitable investment project.

Making money on the stock exchange is a whole science that takes months, if not years, to learn. It is almost impossible to understand all the nuances instantly, but with due diligence, even such an unattainable goal can be realized, albeit not immediately.

Alone An important point in working on the stock exchange is the choice of trading strategy. To decide on the exact subtype of trading tactics, you need to decide for yourself which type of trading suits you best.

There are 3 types of investors:

Long-term.

Brokerage accounts operate on the principles of long-term investment. The client simply buys assets and stores them in his account from 1 to 10 years.

Medium term.

They are engaged in holding funds in a brokerage account from a couple of months to 1 year. The investor sells assets either in this period of time or switches to long-term investing.

Short term.

The most common type of investor who trades securities over time periods ranging from a couple of days to a couple of weeks.

For particularly active clients of this echelon, brokerage firms can offer discounts on account servicing and increase leverage.

There are also speculators - people who carry out trading operations for buying/selling assets within 1 trading day. This type of trading is characterized by increased risks, but the average annual profit here is also higher - on average, by 10-20%.

For each type of trading, you should select your own type of account. If you are in doubt about your choice, ask for help from specialists or seek online advice from popular brokers on the network. They will not only answer questions, but also advise the most suitable options, based on the amount of capital that you are willing to deposit.

Brokerage account– only the first stage on the thorny path of trading. But if you are ready to devote all of yourself to this activity, profit is only a matter of time.

Hi all. Not long ago I told you how to open a brokerage account for an individual, but it turned out that many do not quite understand what it is. Now, some of my readers know how to open a brokerage account, but have no idea why it is needed or what to do with it. So, I decided to improve.

What is a brokerage account?

If you delve into dictionaries, you won’t be able to find anything intelligible. In their words, a brokerage account is a type of account in which your money is located, and it is managed by a certain broker to whom you have given a power of attorney. But this is somehow wrong, now I’ll try to explain everything from the point of view of a person who has been using a brokerage account for several years, that is, me.

A brokerage account is an alternative to a bank deposit. Unlike a deposit, you decide for yourself what to invest in and your profitability is not fixed, but depends on the success of the investment. Even with the most conservative strategies, it exceeds deposit income.

The idea is that you give an order to buy stocks or bonds, and the broker executes it. Simply put, through a certain program or from the office, you inform the broker about your intention to buy 100 shares of Sberbank at a price of 200 rubles and the broker executes your order. This way you become a shareholder.

In my opinion, every person who cares about their financial situation is required to have a brokerage account. Often interesting offers appear on the market; you can purchase income-generating securities, but this can only be done through a brokerage account. Not having it means depriving yourself of such an opportunity.

Benefits of a brokerage account

Access to securities from all over the world! You can become a shareholder of Google, Yandex, Sberbank, Gazprom, Microsoft or Aeroflot in a matter of minutes. Just click a few buttons and shares of any company will belong to you. The same goes for bonds.

The opportunity to become an investor. Receive income not only from the growth of the stock price, but also from the payment of dividends. Each security purchased pays either dividends or a coupon in the case of a bond. You can configure their output to your card. This opens up the possibility of living off dividends from investments made.

You pay taxes on the income received, which makes your investment completely legal. At any time you can get a 2-NDFL certificate, which confirms your income from investments.

If you think that the dollar will rise in price, you can convert the currency and invest it in shares of American companies. Plus, in addition to the growth in the value of the dollar, you will receive growth in the purchased stock and dividends, which will significantly increase your income.

Simply put, any transactions with any securities are available on a brokerage account. It doesn’t matter whether you are an active investor who regularly makes speculative transactions or a passive one who prefers to buy a certain asset and receive dividends, in any case you cannot do without a brokerage account.

Minimum brokerage account

The opening does not provide for any restrictions on the amount. You can open an account and not replenish it at all. Use it as soon as the need arises. There are no fees for an empty account. As soon as you make a deposit, the account will be considered active, and from that moment you will start paying for its maintenance. The size of payments depends on the tariff, but on average it is about 200 rubles per month.

Individual investment brokerage account

When opening, you can choose not a regular brokerage account, but an individual investment account. This is the same account, but there are some differences, bonuses, benefits and restrictions. I'll start with the limitations.

You cannot withdraw your money for three years. That is, it is possible, no one will forbid you to withdraw them, but in this case you will not receive all the benefits and bonuses. But they exist.

The state pays you 13% on the amount of funds deposited. Or you can exempt all earnings from tax. There are people who opened an account with 1,000,000 rubles and earned 300,000 in a year. In theory, income tax in the amount of 36,000 will be withheld from them. But for IIS holders, tax will not be withheld. These are benefits for investors in Russia. If such a client chooses the first type of tax deduction, then the state will pay him 130,000 for the million contributed.

Where to open a brokerage account online

These days, going to bank offices is becoming an increasingly rare event. Especially in big cities, there is simply no time for this; every minute counts. We have long been accustomed to making all payments online, and opening a brokerage account is no exception. Everything can be done remotely and without much effort. You just need to prepare. You will need scanned copies of all documents, namely passport, SNILS, NNN. After filling out all the fields and uploading documents, wait for a call from a specialist.

Brokerage account FINAM

I use this particular broker because of its reliability. FINAM has all the necessary licenses, awards, and titles to carry out this activity. In all ratings they occupy leading positions, in most they are always first. I repeat for the hundredth time I started my activity with the broker Otkritie, which I am also happy with, but the lack of an office in my city decided the outcome in favor of Finam. Taking this opportunity, I would like to once again note the professionalism of the company and thank you for the fruitful and effective cooperation. I hope our relationship will continue in the same spirit, and I recommend that all newcomers join our investment fraternity.

In general, a financial brokerage account is:

• Over 10,000 instruments on all world exchanges including MICEX, Nasdaq, NYSE
• Daily free newsletter of investment ideas, analytical reviews and recommendations from professionals
• Many programs and applications for the convenience of making transactions
• Technical support, free seminars and webinars, own school
• Access to stock, derivatives and foreign exchange markets, St. Petersburg Stock Exchange, Exchanges of America
• Ability to copy trades of successful traders

And much more

I hope I was able to tell you a little more about what a brokerage account is and what it is needed for. Just recently I heard an initiative to keep pension savings in brokerage accounts. Unfortunately, such a pension model is not sustainable, because the majority of the population has no idea how to use it; it’s easier for them to pay who knows where and wait for some wizard uncle to take care of their old age.

Meanwhile, a brokerage account with a conservative approach can bring up to 30% profit per year. You can secure your pension without difficulty, I have already started doing this, but what should you do?

An alternative to a brokerage account. does it exist?

There is literally no alternative. That is, the functions that an investor needs are present in this service in full. However, there are some points that make a brokerage account inaccessible, then you have to look for workarounds. If you are a citizen of Russia or do not live in our country at all, then opening a brokerage account will not be available to you. But there is a way out, you can read about it in my article -