4 Signs You Need to Change Your Trading Broker
Investing is a great way to build wealth. Part of this process is choosing the right asset and the right brokerage firm. However, with so many options available, many people tend to stick with one broker. Luckily, there are four signs that you may want to switch your trading broker. Here are some tips for making the switch:
Changing your trading broker
Changing your trading broker can be beneficial, but there are several factors to consider before making the change. Not all brokers offer the same investment options, so do your research, and compare their offers. Some brokers only offer American stocks, while others offer international stocks. You may also want to consult a tax professional before making the switch. Listed below are a few things to consider when changing your trading broker. Read on to learn more about these and other issues related to switching your trading broker.
Changing your trading broker may be the best option if you’ve been unhappy with your current one for a long time. Many brokers are changing firms for career reasons. They may get a better pay, new products, or a higher-level position. When your broker changes firms, you’ll be surprised by the amount of correspondence you receive from both firms. In some cases, the new firm will even request your account assets.
Checking if your broker is legit
The first thing you should check when you’re choosing a trading broker is whether they’ve received any complaints. If they have, you can make use of the Financial Industry Regulatory Authority’s database to find out whether or not the firm is legitimate. Alternatively, you can look for testimonials from clients to make sure they’re not fakes. Regardless of the method used, you should be careful not to make a deposit with a broker that doesn’t have a good reputation.
One way to check if a trading broker is legit is to call the references provided by the company. The references of a broker should be legitimate and able to provide their clients with valuable advice. Asking for referrals from friends, colleagues, or family can be helpful in picking the right financial advisor or trading broker. You should also check if the broker responds to your queries. If you can’t get an answer to your query, move on to the next broker.
Checking if your broker has a web or mobile app
If your broker doesn’t have a web or mobile app, you may want to do some background checks on them. For more information, you can go to the FINRA website. This independent, not-for-profit organization protects the interests of investors, and some states will direct you to FINRA when looking for information about a broker. Broker Check is a good place to look for additional details, like reviews.
Reading every line of your statements
Before choosing a trading broker, make sure to read every line of your monthly statements. This is because putting your money in another person’s hands doesn’t mean you can expect them to read your statements. After all, you are trusting them with your hard-earned money. If you don’t read your statements, you can count on them to make bad trades. Outside counsel for Wells Fargo in this case, Stephen Young, argued that the victims of the scheme didn’t pay attention to their accounts. But Wells Fargo made sure to document every trade.
Checking if your broker charges commissions
As a customer, you should check whether your broker charges any commissions. Most brokers don’t charge any fees unless they are related to certain transactions, but some charge different amounts depending on the branch office or customer. FINRA recently took enforcement action against five brokerage firms for misrepresenting fees, commissions, and handling services as separate charges. These fees were in fact disguised commissions. In the end, consumers should beware of any fees that seem excessive and always ask for an explanation before making a decision.