How to choose a broker on the stock exchange?
Most people start trading on the Russian market ask this question, what are the criteria to select a variety of companies that would be more convenient to trade on MICEX and FORTS.For a man who has decided to enter the bizarre world of finance stocks, bonds and derivatives, the choice of a broker is one of the keys to success in trading.Today, a huge number of Russian companies are using modern marketing and literally pulls to his customers, while keeping silent about the various commissions, fees and fines.In this article, I will describe the practical benefits of working with brokers.What are the "framework" better to choose them to reduce their spending on commission, I think it is one of the most important aspects in the trade, as they determine not only the business strategy, but the very essence of the work on the market.Let's get straight to the point, the first thing people look who decided to trade on the Russian market are tariffs brokers with them and we'll start.
I .Rates and types
Usually the broker, there are 4 types of rates they offer:
1.This size fixed or monthly fee, plus it adds the commission of the turnover of the day.For clarity, is an example.Let's say the market has the company A, and it offers the tariff in the brokerage market.The client, who has decided to go for this type of payment, pay monthly fixed amount for example in the amount of 1,000 rubles plus the for each day it additionally gives the broker the money on the amount by which the client companies sold / bought the day the action,The amount of commission of 0.01%.So, if an investor (client), has 50 000 thousand rubles, he bought and sold shares of 2 times (here I mean the sale (short) and buy (Long) has been made either once, or only purchase or only sale2 times, and all this combined with closed positions), its turnover has already reached 400 000 thousand rubles, its cost is 40 rubles + 1000 rubles a month.Probably the majority of people reading this article, a question, and that means from the closed position, now I'll explain.In order for the client to take profits or stop loss if we do not correctly predict price movement, we need to close the position.To do this we have to make the opposite operation of the client did before when he bought shares (Long), you must sell them in the same amount if he sold them, he must buy, return them to the broker, againsame amount.
author believes this tariff is not one of the most effective.Typically, brokers operate on what percentage of the turnover low compared with other rates, this fixed fee per month will be beneficial.In fact, I think it is worth to carry out a mathematical calculation.
2. The second common tariff, the minimum fee for the turnover.The problem with this tariff is that for every order you will pay the minimum threshold set by the commission of the turnover.For example, take the same 400 million rubles for the one you bought two shares on the Russian stock exchange, suppose Company A minimum commission turnover amounted to 50 rubles on revenue of 0.01% .In this example, you would pay all the same 50 rubles purchased sharesthough your costs will be as low as 40. The point of this tariff is that the minimum amount is 50 rubles, it will always be fixed, even if your expenses are less than 50 rubles.Do not forget that the commission is taken from each transaction (the application)!
3. One of the most advantageous tariffs, which have brokers in the Russian markets vnezavisimosti on the number of deals and minimal commissions, as well as a fixed fee per month, it's a certain percentage of turnover in the day.We my opinion, the most favorable tariff rate has the lowest costs and the best option.
4.Suschestvuyut well as various consulting fees for beginners, what is worth paying attention to.As the youngest participant of trading, we must first find out whether it is advice on market movements.If the consultation overall plan, you should consider whether they should do, as a rule, consultations are taken additional fees, for example in the same increase in turnover.In principle, the answers to basic questions gives support, so I advise you to read carefully and be sure to ask, it will save your costs.Once again, I remind the newcomer are important only advice on the market and not on general issues!
Brokers provide services, as a rule, and even for individual tariff plans, but everything here depends on the width of your pocket.
important to inform those who are going to trade the market just on the software.Since brokers love to take commissions and fees for providing this to say on the spending of customers open an account.This is the second large section in which I want to dedicate this article.
II .Software
work program is no less important for selection, as well as the tariff.Ease of operation and a guarantee of success, but as the saying goes - should pay for everything, here it is necessary to pay attention.First of all, the cost of the software per month.I think it becomes clear that someone it can lower the other brokers in more expensive, while others can be disabled.Also important will be to clarify a lot of free of charge or connect it to a computer or a smartphone, as well as a variety of additional commissions, in particular notification of completed transactions, executed applications and other software products.Also, you should specify whether there are free programs.Just ask advise about the software on the phone and what operating system is required for installation.I say this in order to avoid problems when for some reason the phone program will not go to trade.In principle, all information should provide brokers, there should be more than just asking and do not hesitate to do so.
III .Margin securities and the provision of a shoulder
Another fact that should know the client is the percentage per year of the broker takes the shorts and shoulder.
earn in the Russian market, you can not just investing in stocks, and selling them.Making the sale of shares we sell them more expensive, buy cheaper.The most advantageous to do so in times of economic crisis, when stock prices are falling in value.When a trader shorts (sells) shares, thus it takes them from a broker, the broker provides natural stocks is not free, but under a certain percentage per annum.It is important that the investor's profit exceeds its cost of borrowing under the shares.
Usually beginners there is a desire to increase their capital as quickly to do so in most cases it turns out, the broker provides borrow cash deposit equal to the so-called shoulder and it is also expressed as a percentage of the loan amount equal to your deposit.This is a good way to increase their capital and their profits.
Members coming into the market, in most cases already traded on demo accounts and adapted to certain shares, including those that are not blue chips, the so-called "illiquid", is - shares the second, his 3- and4th tier.To avoid disappointment, the client should know the list of securities, which enables the broker to buy a shoulder or which stocks can be sold (shorts) take up their broker.
One of the last big points in my article will be able to withdraw money or places them about this fourth point I want to tell.
IV .Conclusion and withdrawals
There are usually talking about commissions, the main questions that should not forget to learn the following broker:
1. The sizes of the commission when withdrawing money in cash.
2.Minimalnaya withdrawal amount.
3.Paper Commission when withdrawing money through the card that offers the broker or transfer on it.
4.Uznat fee if the card is in service.
5.Razmer commission if withdrawal occurs with cards of different banks or money transfer to the account.
6.Maksimalnaya amount that can deliver ATM in one day
I have described above the main points you should know and do not forget to check with brokers, because under the additional cost gets your personal income.There remains one paragraph is additional costs that may be charged to the client:
V .Additional commissions
A) The imposition of additional remuneration for dividends that is, to 9% of the tax levied by the state, the company can even add your%.
B) Learn about EDS (electronic digital signature).Usually electronic signature free of charge, but may also have to pay a certain sum of money for this type of information security.I personally recommend signature EDS, where trade is with the help of the stick, that is, the principle is the following, if the flash drive (EDS) is inserted into the computer, then make kakuyu- an operation is not possible, whether it is cash withdrawals or the purchase or sale of shares.There are minuses, the stick will always have to carry with them, but security is at a higher level.
B) cut-off date of the register.This is a definite date when determined by the shareholders, which will be paid dividends.Since you took the shares from a broker except that he took with your interest in annual terms, he wants to get his warriors to dividends from these shares.Every broker in this respect has its own conditions, we should learn more about them.Typically, the broker warned of this event.
D) Check the cost of servicing the deposit per month.In principle, if the account is not performed operations, that is, people threw money into the account and more with them, did not do anything, they just lie on deposit, it is usually the service is not taken, but who knows, all the information againI repeat, we must learn from the brokerage firm.
D) This fee does not apply directly to the broker, but it will charge exchange, it is 0.01% of turnover, and added, in addition to brokerage commissions.
I hope that I was able to submit to the ordinary reader, a rough idea of how to choose the best broker.I guess reading this article will be of interest not only to those who first entered the market, but also for people already having opty in the Russian market.Knowing how to not splurge on commissions, market participants will be able to extract more profits.It is necessary to take care of themselves and their investments.
