I am thinking about opening a brokerage account. This is sort of a three question in one question, but: 1). What would be the minimum for a brokerage account? 2). What would be the best firm to open this account with and 3). If heard a lot about trading in currencies, are people allowed to trade currencies in these accounts?
2007-08-22 14:07:15 · 7 answers · asked by maq3000 1 in Business & Finance ➔ Investing
I really like scottrade.com $500 min and $7 flat trades. You would need a forex account to trade currencies, start small with the scottrade and technical analysis.
2007-08-22 16:22:47 · answer #1 · answered by crim 3 · 1⤊ 0⤋
1.) Depends on how much you want to trade when you open the account. Figure a minimum of two thousand or so. That is the lowest I recall seeing.
2.) the one with the lowest commissions and fees.
3.) yes you can usually trade currencies with most brokerages.
Now, advice is worth only what you pay for it, and this advice is free, but....
I am not really sure that a brokerage account is right for you at this time. Your questions indicate that you are knowledgeable, but still need more education. There are millions that get ripped off by their brokerages because they thought they knew more then they really did. Please do not become one of them.
I would recommend two things.
First, mutual funds. (Personal favorite, Vanguard) Let the experts pick the stocks, and you enjoy the benefits. And, their site has an excellent learning area.
Second, NEVER invest in something that you do not fully understand. And, NEVER invest money that you cannot afford to lose. (Sorry, that was actually three things.)
2007-08-22 21:18:29 · answer #2 · answered by cbmttek 5 · 0⤊ 0⤋
95% of all the people that try currency trading lose their account in 3 - 6 months (or less). Don't put one cent into Forex trading until you've read everything you can, paper traded and understand "Money Management".
The brokerages that charge the least are commonly known as "deep discount". If you have several years or trading experiance behind you.... it's the way to go. It's the worst place for "newbe's".
Use a major broker like Charles Schwab or Fidelity Brokerage to start. Take your time to understand investing (be careful of not falling into a "gambling mentality").
Implement a "asset allocation" model that works for you. Know your risk tolerance. Never take "tips". Wait 5 - 10 years before trading "penny stocks" (if at all).
One more thing: It's not a good idea to take investment advise from strangers whose qualifications and motives can never be known. I'm sure my answer is not the best. But I can tell you that several answers you've received are totally wrong.
Be very careful.
2007-08-22 23:26:08 · answer #3 · answered by Common Sense 7 · 0⤊ 0⤋
Brokerage minimums depend on the brokerage firm - A G Edwards does take small accounts ($50 monthly), Merrill Lynch has some light weight account provisions, Morgan Stanley offers a Platinum account for $ 1,000,000 in assets in the accounts. The small accounts get hit with fees just like a checking account so ask lots of questions about fee structure.
The best firm is the one that deals in you investment levels and that you are comfortable with the broker you will be dealing with.
Currencies are not stocks so they do not trade on the stock market. Currencies are commodities and trade as such. Generally the units of trade are 100,000 of the currency to a lot and sell in multiple lots. Most FOREX traders trade on margin which can mean margin calls in the $ 100K to $500K USD range. If you don't have that lying around talk to FOREX on the Internet
2007-08-22 21:50:18 · answer #4 · answered by Mordecai Jones 3 · 0⤊ 0⤋
1- If you are not looking for a money manager, an advisor, etc
I do not see any benefit to having an account with a full brokerage. Online brokerages offer just as good a service, at low prices.
2- If you are a trader. And it is important to seperate wanting, liking to be atrader, to being a trader, the best firm that I have found is interactive brokers.
Not all firms allow currency trades, you have to ask.
2007-08-23 00:59:20 · answer #5 · answered by demaissoneuve 2 · 0⤊ 0⤋
Questions 1 and 3 depend on the rules of the brokerage.
You are obviously a beginning investor, so I suggest sticking with mutual funds.
Currency trading should be left to the pros.
2007-08-22 21:17:17 · answer #6 · answered by Buddha-rama 4 · 1⤊ 0⤋
Hi, here is a collection of informative articles about investing. a free online investing tutorial for you.
http://www.investingtutorial.info/
good luck !
wish you make fortune from investing !
2007-08-22 22:33:38 · answer #7 · answered by Anonymous · 0⤊ 0⤋