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How to Open a Trade Account

Steps to Open an Online Brokerage Account

To start trading the actionable trade ideas that I email you, you will need to open an online brokerage account. Here are the five easy steps to follow:

1. Choose a reliable online trading platform

There are many online platforms to choose from such as Interactive Brokers, E*Trade, TD Ameritrade, TradeStation, Charles Schwab to name a few. The key is to study about five of them and compare all of their individual features. I use Interactive Brokers because they are user friendly and their fees are low, however feel free to use another broker once you have finalized your analysis.

2. Compare commissions among the online brokers

For the five brokers you selected, look at the fees they charge for each financial instruments. Please be aware that there are many fraudulent companies that offer very attractive low fees to seduce you. As mentioned above, stay with large and well known online trading firms that can show a reliable trading history. Avoid platforms with negative reviews or reported fraudulent activity.

3. Compare the services offered

Pricing is not everything -- especially for new investors. Of course, all other things being equal, it is best to find the lowest price, but here are a few other things you need to consider when picking a broker:

4. Get authorized to trade stocks (and other financial instruments that you want)

The good news is that getting authorized for stocks trading is easy and usually takes less than five minutes to complete. For online investors who are opening up a new account, merely check the box to indicate that you want stocks trading authorization.

The online application may then ask you a few questions regarding your investment objectives, size of your account and trading experience.

5. Fund your account

Your new online brokerage will probably give you a few options to fund your account, including:

It is a very easy and smooth process. The complete application only takes 15 minutes.