
HOW DO I OPEN A BROKERAGE ACCOUNT?
If you’re looking at managing your investments, the first thing you need to do is open a brokerage account. This guide uncovers what you need to know in order to open the best brokerage account for your needs.
If you’re looking at managing your investments, the first thing you need to do is open a brokerage account. This guide uncovers what you need to know in order to open the best brokerage account for your needs.
There are two methods to opening brokerage accounts, in person and online, and they have many similarities.
After selecting the firm or bank you would like to deal with and either choosing an investment advisor or representative, or being assigned one, the paperwork and identification process begins. Due to anti-money laundering laws, identification and bank account information will be required. Often, it is two pieces of government-issued identification and a cheque drawn on a bank account in your name that will be required. If dealing with a personal broker, the firm is a full-service brokerage. However, you can open a discount brokerage account in person, as well.
The online process will vary from firm to firm, but you will be required to send in forms and copies of your identification and a deposit. Often, you will also be required to have had a pre-existing relationship with the firm (i.e. have a chequing account at the bank side of the firm) to further prove your identity. Most online entities are discount brokerage firms.
Online accounts are typically referred to as discount brokers and will charge a lower commission but provide no advice, tax planning or investment expertise. Full-service firms charge a higher commission but match you with an investment professional who can provide advice on a number of topics or refer you to someone who can help with tax and legal issues, as well as provide investment ideas and access to speciality or restricted investment products (e.g. IPO’s, private placements).
There are a number of types of brokerage accounts that an investor can open to meet various investment goals.
Find more information on various types of investment accounts.
Dec 27 / Posted by Brad Parkes
Dec 27 / Posted by Brad Parkes
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