How to open an account with a stockbroker

Fsp Invest, 25 Jul. 2013

Tags: stockbroker, how to open a stockbroking account, how to find a stockbroker, jse,

When you decide to invest in the stock market, you’ll need a broker! Opening an account is an easy thing to do. Read on and you’ll discover all you need to know…

Once you’ve made the decision to invest some of your hard earned cash in shares, you can’t go any further without a stockbroker.

And opening a stockbroker account is an easy thing to do. Before you know it, you’ll have everything in place to start buying shares.

But there is one thing you need to consider before you open an account: How much money to invest?

Most brokers will insist you have a set minimum amount of funds before they will open your account. About R30,000 should get you started with a retail broker.

How to find a stockbroker

To find a broker, have a look on the JSE’s website. They have a list of all the stockbrokers who are members of the JSE.

Have a look through the list and select a few that seem suitable. It’s a good idea to phone them and ask for details of their brokerage charges.

This first contact with the company will give you a good idea of what kind of service you can expect going forward.

Be sure to read through each company’s offer and brokerage fees. Then you’ll be in a position to decide which you prefer!

The process of opening an account is incredibly easy, explains Gareth Stokes in Fear, Greed and the Stock Market.

It’s as simple as requesting an application form, filling out the form and returning it to the broker concerned.

You’ll also have to supply a copy of your ID and proof of residential address, such as an electricity bill.

Unless you want to pay for the advice of a stockbroker or have the stockbroker invest on your behalf, open an execution only or non-discretionary account.

Once the broker processes your application, all you have to do is transfer the funds and you’re all set to go!

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