This list is based on some key factors to consider when choosing a stockbroker. When picking a stockbroker to work with, it is advisable to research as many stockbrokers as possible and consider your investment goals thoroughly. Pepperstone is an Australian CFD stockbroker, active in the UK and globally. It has created a trading app for each of the platforms it provides – MT4, MT5 and cTrader. The Pepperstone cTrader app is recommended for those new to trading or still finding their investment footing. The cTrader app provides the same trading experience that you would experience in the computer version. Pepperstone offers social copy trading but you may only trade CFDs with this broker. The standard account is commission-free, whereas Razor account holders are subject to commission charges. There is no minimum deposit, but Pepperstone recommends £500. Withdrawal fees are charged to customers outside the EU and Australia. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.8% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. XTB is a tier 1 regulated broker platform founded in 2002. Offering mobile, web and desktop versions, it provides comprehensive charting tools and is well known for its 24/7 customer support. A benefit of XTB is the educational and research tools offered, along with a news feed, which is suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. It offers a 20% welcome bonus up to $10,000, according to regulation and a free 21-day demo account with $100,000. Instruments include:
Metals Commodities Stocks FX Options Oil ETFs Options Crypto currencies CFDs Indexes Shares Spread betting Indices Forex Bonds
AVATrade EU Ltd is regulated by the Central Bank of Ireland. (No.C53877) Ava Trade Markets Ltd. is regulated by the B.V.I Financial Services Commission. It is also highly regulated in Australia, South Africa, Japan, Middle East, Cyprus and Israel You can not trade with AvaTrade in the US, North Korea, New Zealand, Iran or Belgium. Mínimum deposit of $100, no withdraw limit and no fees.
City Index is a tier 1 regulated broker in three countries. The platform is a well-known broker service for financial spread betting, CFD and forex trading. It offers a wide range of research tools, a customizable view and a news feed on the latest market news.
Interactive Brokers has a wide range of assets that can be traded across multiple global markets. The platform is offered as a Lite version, with no commission charged on US-listed equity trades. The Pro version has many research and charting tools, a mobile version and two-factor authentication.
IG is a tier-1 regulated broker in six countries. The IG group offers many types of trading platforms, along with various charting tools and watch lists. Additional functionality includes:
Research tools Educational resources Mobile trading Social copy trading
Saxo Bank is a tier 1 regulated brokerage in the UK. The platform offers many features geared towards experienced investors. These include advanced research facilities, a customizable desktop view and advanced workspace options, where six screens can be used to view trading activity. There is limited customer service functionality and the platform isn’t open to US clients.
Founded in 2005, FP Markets is an Australian-regulated broker service. The platform is available as a mobile, web or desktop trading platform and offers social copy trading. Platforms are available in many different languages. It is worth noting that traders can’t use the platform in certain countries, including the US, Belgium and Japan.
They trade assets, such as stocks and shares, on your behalf and look after your portfolio of investments. Advances in technology have meant that the world of stockbroking has moved on from the more traditional way of doing things. Nowadays, stockbrokers work with clients in different ways:
Discretionary stockbroker – Takes full responsibility for their clients’ investments. They are managing the investment decisions, as well as making trades. Advisory stockbroker – Shares their knowledge and expertise to advise clients on the best investment decisions. Clients have the responsibility for making the final decision. Once authorized, the stockbroker will then execute their decision. Execution-only stockbroker – Do not offer advice or manage a client’s investment portfolio. They buy and sell trades on the stock market only – i.e. execute their clients’ investment decisions.
What Are the Different Types of Stockbrokers?
If you decide to work with a stockbroker, it is vital to understand the different types. It’s also important to consider:
How involved you want to be when it comes to trading on the stock market Whether you want to learn about how the stock market works
There are three main types of stockbrokers that individuals and organizations can work with.
Full-Service Stockbroker
A full-service stockbroker provides a comprehensive brokerage service to their clients. They take full ownership of a client’s investment portfolio, researching, giving guidance to clients, managing their clients’ investment portfolio and executing the trades. This type of brokerage will keep the client regularly informed of how their investment portfolio is performing.
Discount Broker
A discount broker is a brokerage service that executes trades on their clients’ behalf. This type of broker service does not offer any advice, planning or research on investment decisions or portfolios.
Online Broker
Online broker services enable investors to manage and execute trades themselves. Online brokerages often include research, planning and educational tools as part of the service. These services mean that new and experienced investors can learn more about markets, types of trades and trading strategies.
How Do Stockbrokers Make Money?
Stockbrokers make money in different ways, depending on the type of brokerage service offered. Some will take a commission on the investments made. Others charge fees based on the type of asset or the amount traded.
How Are Stockbrokers Regulated in Brazil?
The Brazilian stock exchange is regulated by the Securities and Exchange Commission of Brazil (Comissao de Valores Mobiliarios, or CVM). The CVM is responsible for the legal and transparent trading on the Brazilian stock market. One of the most popular assets to trade on the Brazilian stock market is foreign exchange (forex). It is recommended that the CVM authorizes Brazilian forex brokers to trade, although this is not a requirement. If you are looking to work with a reputable CVM-approved stockbroker, or if you want to check that a particular broker is CVM-authorized, it is advisable to contact the CVM. The Brazilian Central Bank (BCB) also has responsibility for supervising and licensing forex brokerage services in Brazil. Under the BCB, all forex brokers need to be licensed by the BCB to trade forex in Brazil.
Tier 1 Authorities
Some investors choose to work with an international brokerage regulated under tier 1 authorities. There are many benefits of choosing a broker regulated under a tier authority. Tier 1 brokers are deemed trustworthy, as they have to adhere to strict rules and procedures as governed by tier 1 authorities. Some or all of the investor’s assets are also protected should the brokerage go bankrupt. In addition, the investor’s funds are segregated, so the broker has the funds to pay an investor should they wish to withdraw their funds. Tier 1 regulated brokers also abide by strict trade rules governing trades and anti-money laundering rules.
How to Choose a Stockbroker in Brazil
To select the right stockbroker for your needs, you should consider different factors: Know which assets you want to trade in and which funds you have available to trade. Think about the sort of broker service you want – whether you want someone to take full ownership of your investments, or whether you are happy to learn about investing strategies so you can manage your investments. If you are an experienced investor, looking at the additional functionality, research capabilities and tools from a brokerage is also something to consider. Knowing the reputations of the brokers who offer the services you need and those to avoid means you can be confident in your choice. Know which assets you want to trade in so that you pick a stockbroker who offers trading services in these assets. Knowing what fees your broker service charges means that you can manage these additional charges on your account or broker services. It can also allow you to pick an affordable broker for your requirements. Determine what you are looking for from a broker platform according to the level of investment experience you have and your short- and long-term investment goals.
How good are the analytical tools? For example, does the platform offer charting tools? For less experienced investors, does the trading platform offer social copy trading? Does the trading platform come with educational resources, such as investment strategies for specific assets? Is there specific mobile functionality included?
Knowing what you want from a trading platform will help you determine which tools you need from it. Before choosing a trading platform, it is worthwhile to find out:
Whether customer service is offered by the trading platform Operating hours of customer service How to contact them (email or phone) The response time Is there a dedicated technical support helpline?
Thinking about what you want from a stockbroker, the funds you have to invest, what you want to invest in and what type of service you want can help to narrow down your choices. Doing your research and due diligence means that you will choose a reputable stockbroker that meets your short- and long-term investment needs. WikiJob does not provide tax, investment or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.
