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10 Minute Guide to Investing in Stocks Chapter 9

Lesson 9. Opening a Brokerage Account. In this lesson you will learn about the various types of brokerage accounts that are available and the differences in how they operate. Opening a brokerage account is a relatively simple procedure. | l@ve RuBoard PREVIOUS NEXT k Lesson 9. Opening a Brokerage Account In this lesson you will learn about the various types of brokerage accounts that are available and the differences in how they operate. l@ve RuBoard 4 PREVIOUS NEXT k l@ve RuBoard PREVIOUS NEXT Getting Started Opening a brokerage account is a relatively simple procedure. On average most brokerage firms will open an account for about 2 500. However as this is an average the initial amount may vary. Many brokerages offer accounts at various levels with a number of enticements to make the investor open the account with as much money as possible. Open an account at 10 000 and you get a toaster. Open an account with 100 000 and someone from the brokerage will come to your house to make the toast. See how that works In all seriousness the fight for new investors is fierce and you can make out as the various brokers battle for your business. Most e-brokers are currently offering everything from reduced trade prices to outright free trades for an extended period of time a year for example if you commit to keeping your account with them. Whether you open an account online by telephone or in person be sure and ask what kind of perks are available or you might miss out on a great deal. In addition regardless of what type of broker you will be using it s probably a pretty good idea to get information on a couple of different ones before making your decision. Any legitimate broker will be happy to give you almost any type of information or reference you wish to see. Not all brokerages require such large initial deposits when opening new accounts. To most people 2 500 is an astronomical sum and that s not so strange. The average person simply doesn t have 2 500 lying around the house not being otherwise used. A number of brokerages do allow smaller initial investment amounts of 1 000 or even 500. In addition many brokerages will allow you to open an account with a small amount if you agree to systematic deposits.