She told me that the hardest part of getting started was finding where to open a brokerage account. As she told me: I approached the assignment like I would with any other: with hours of research. I went through many different trading websites, only to find myself overwhelmed with forms and instructions. For example, just trying to figure out how to fund my account was awful. I don’t live too close to a branch of my bank, so the process of setting up a wire transfer seemed tedious and time-consuming. Worse, I only had a small amount to invest and many brokerages required minimum balances beyond my means. After a few months of research, she opened her first brokerage account and started investing. And a lot of her initial fears are gone. To help you get started, here are four simple things to know when looking for a brokerage account: 1. FRACTIONAL SHARES . If you’re starting off with a small portfolio, find out if the brokerage firm offers a plan to let you invest in fractional shares. That way, you’re putting some money to work immediately, even if it’s not enough to buy, say, an entire share of Apple. Just pay attention to what fees you might have to pay.
for fractional share transactions as well, which can affect your budget. Make sure you know exactly how much each trade will cost before you start so you won’t get any surprises. Some brokerages, like Fidelity, Schwab, TD Ameritrade, and Vanguard, offer commission- free funds. 3. MINIMUM BALANCE. Some brokerages require a minimum account balance. For example, Interactive Brokers has a minimum balance requirement of $10,000, and you need to spend at least $10 per month in commissions. On the other hand, Capital One Investing (formerly ShareBuilder) offers a $0 minimum balance, and you don’t need to spend a certain amount on commissions each month. So if you have a small portfolio or you don’t plan on trading often, this might be a better option for you. 4. TAXES. Every brokerage will provide a form for tax time, but make sure you read the fine print. See if you are required to go online and request the form or if it will be automatically mailed to you. Make sure you understand how it works and you’ll save yourself a headache. If you still aren’t sure about taking that first step, remember that the most important step is the first one – getting started. And if you know someone who should be investing but hasn’t started yet, feel free to share this article with them. Help them kick the fear and get going on the road to building wealth today.
2. FEES. Figure out what the fees are for completing a trade. Some places charge fees
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