This is bhupi and today I am going to show you how to set up a Stock Brokerage Account in US for beginners.
So that you can buy and sell stocks and I am also going to show you how you can receive two stocks for free by opening up a stock brokerage account in US as part of a special promotion that I think a lot of you guys can benefit from now. I will mention that a lot of what I am going to share today is going to be geared towards those that live within the united states.
most of you watching are in the United States however I do understand that some of you are international including myself I am from New York and currently a resident of Los Angeles, but I am a major investor in the United States.
there are many stock brokerage accounts in the united states that allow people that are foreigners and allow people that are international to set up accounts with them and that's what I had to do it might be what you have to do as well so I want to provide a variety of different options if you are in US but even if you're international and I am going to link to some of those options that you might want to consider below in the description so a lot of what I am going to share today and even more than what this video is going to cover you can find in the description of this video I will provide a lot of different resources so that if you're international in the U.S.I have got you covered now I first want to go over
what you need to consider in a stock ?
brokerage account there are many different options out there you might be lost you might be a little bit confused I want to help you be able to identify which stock brokerage account is right for you even though they all serve the most part the same purpose.
there are some differences and you might want to consider one over another the first and most important thing of course is making sure that the stock brokerage account is regulated by the government in the united states making sure it's registered with the sec the securities and exchange commission making sure that it's insured with the SPIC this will make sure that if anything happens to the stock brokerage company that they go bankrupt that your money is still protected and it's insured you can get your money back you also want to think about what are your goals for investing is it more for retirement are you more investing in holding over the long term are you day trading do you want to trade options or futures or foreign exchange or even cryptocurrency there are many different types of investing and some brokerage accounts might be more beneficial than others based on what you want to do.
I am more of a long-term investor I buy and hold over the long run I don't trade you know futures or options or even for an exchange, uh cryptocurrency can be a great you know option for some of you, not all brokerage accounts allow you to to buy bitcoin, for example, one of them called webull does allow you to do so.
so those are things you might want to consider and think about the other thing
you want to think about is the commissions and fees so a commission is a fee that a brokerage account might charge you based on buying and selling most of them today have zero commissions. so you don't have to pay anything for buying or selling a stock some of them you do for example one of them that i use is called interactive brokers which is in the united states.
they allow people that are international to set up an account with them i do pay a fee and a commission on every trade that i make it's around a dollar not that much but still can add up over a long period. when i was in Canada. I used RBC direct investing and scotia.
I trade both of those had fees. I think at the time that we are using it as around five dollars for buying and selling. I am not sure what it might be today usually now they're going in a direction where most of them you're gonna find zero fees and zero commissions on that however you might be wondering how these companies how do these brokerage accounts make money well they make money on the back end oftentimes they act as a bank the cash that you sit inside their account
they're loaning that out to get a high interest from it or they might even be investing it themselves some brokerage accounts can kind of act as savings accounts that even just the cash that you put in their account that sits there you can get interested on that although often it might not be as great as what you get in a savings account in a bank
so you might want to consider that but for the most part at a time like this people aren't getting that much from a savings account just because interest rates are slow so low uh based on what the federal reserve did of just lowering interest rates but that's that is something you might want to consider is you know some of them you can hold your cash in it and get some interest for that money at the same time another thing to consider is whether or not they allow paper trading paper trading allows you to invest with fake money paper money so it's not real it's recommended if you're a beginner to start with paper trading first this can allow you to get your feet wet to gain some experience to practice buying and selling stocks with imaginary money before using your real money so most of them allow that but that is something to look out for another thing is the minimum investment required the minimum amount of money.
you have to deposit to your account most of them is zero, however, some of them such as m1 finance they require a hundred dollar minimum for you to to to invest or to deposit to the account to open the account a retirement account might cost a little bit more I think with them it's about 500 so that's another thing you might want to look at uh also research capabilities the different stock brokerage account in US one difference between them is they all provide different levels of research so as an investor you want to research companies before you invest in them some of them are better than others some of them have their services and research services they provide for you others they outsource that to a third party.
I like to go to a different websites for my research i like to use yahoo finance yahoo finance I find i can do all my research there they have abundant information on any stock or any investment that. I want to make but for the most part, some are a lot better than others another thing you might want to consider is some brokerage accounts allow you to buy fractional shares mean that you can buy a fraction of a share and not the whole price of a share of a company so, for example, amazon is trading at over three thousand dollars and a lot of people don't have three thousand dollars to invest in amazon or maybe a lot of people are starting.
off with ten thousand dollars and to have you know thirty percent of your portfolio in one share of amazon isn't gonna be the best way to diversify yourself so some uh brokerage accounts allow you to buy a fraction of a share so instead of having to buy three thousand dollars to get one share of amazon you can invest a hundred dollars and just get a fraction of that uh m1 finance allows you to do that uh not all brokerage accounts allow that so if that is something that you are considering you might wanna you know look at the different options there for that as well another thing will be foreign trading uh so if you want to hold different currencies.
for example, for me I hold USA currency and Canadian currency uh I trade on the US markets and exchanges but also the Toronto stock exchange in Canada so I do hold a lot of positions in Canadian currency as well you might want to consider if you want to invest in Europe or other parts of the world different brokerage accounts can provide different options and more flexibility
for you with that another thing to consider is margin trading some brokerage accounts allow you to set up a margin account which means that you can borrow money and take out a loan from the brokerage account you do have to pay that money back there is an interest rate on that as well that's typically more advanced i would not recommend if you're a beginner to borrow money or to do margin trading because it's very risky at the same time but if you are more advanced and you are looking for a brokerage account that can allow you to do that some can provide that for you and the other thing would be just the overall user experience
every platform is a little bit different
interactive brokers which is one that i
use honestly I am not a big fan of their user interface or their website I have had a lot of issues with it's a little bit slow at times sometimes it doesn't work sometimes it's not loading the data for me they do have an app and the app is a lot better there's a lot of brokerage accounts that are more app-based such as Weibull or robinhood that you might want to consider
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