Many successful investors use a brokerage account. You might have heard stories of people gaining billion dollars through their brokerage account. It sounds interesting, right? Now, before you open a brokerage account, you have to at least now the minimum balance and the services brokerage account offers.
The minimum opening balance required
Each brokerage account may have different opening balance requirement. Some of them set a minimum of balance around $1,000, $2000, or even more.
However, you still can find other brokerage firms that let you open an account with a smaller amount of money. On the other hand, these firms usually obligate you to regularly deposit money, often on a monthly basis.
The services
If you open a full-service broker, then you can directly talk with your broker, personally. Then, you can discover a wide range of investment research and reports.
Yet, if you open a discount broker, it is important for you to know the different offerings from each brokerage firms.
Some brokerage firms will provide you free access to equity and mutual fund research data from various institutions and investment banks. While some other brokerage houses have had deals with the major credit cards companies.
Consequently, if you become their clients, you can access certain offerings that are not available to the general public.
These benefits, usually also depend on your accounts size and the deposits of cash rewards linked into your account. One card can give 1.5 percent in cashback instantly on all eligible purchases.
Also read: 5 Important Points When Choosing a Forex Broker
Besides, particular brokerage accounts at certain brokerage houses will be able to invest commission-free into certain select securities. That includes mutual funds, exchange-traded funds, and index funds.
For small investors working on a shoestring budget, this can be a great way to save money.
Now, you need to dig deep into each brokerage firm’s website and find the details of their services in order to find the one which suits your need.
