This feature varies from one broker to another. Some might require you to put down $500 while others might have a minimum deposit of $2000.
Margin requirements will also vary on the type of trading strategy you employ. Margin trading involves substantial risk and it is important that you become acquainted with your strategy before trading on margin. Most of the brokerage firms make you sign an agreement form stating that you understand the risks associated with margin trading. This contract agreement is to protect the brokerage firms to ensure that traders understand the implications of trading on margin. For example, a beginner might short a stock in an uptrending market and could risk his account.
Margins are usually calculated after the market closes. If you have an open position that has moved significantly against you, the brokerage firm may issue a “margin call” requiring you to deposit additional funds to maintain your position. investire in trading If you are unable or unwilling to do so a part of your account will be liquidated to meet the call requirements.
Features & Services:
The decision to choose a broker based on the service the provide will depend on your trading approach. If you require a personal service and attention you will probably want to go with “full-service brokerage”. You will be assigned and individual broker who will personally handle your account. Minimum account requirements and commissions are higher for full-service brokerages that for discount brokerages.
But in contrast, if you prefer to be in-charge of your own trades or do not have the capital needed to meet the requirements of a full-service brokerage you will probably want to choose a “discount broker”. These firms have zero to no-fees and lower commissions compared to full-service brokers. Internet brokerages are an example of discount brokers and will allow you to open an account and trade online over the internet.
Types of Products Offered:
Many traders would like to diversify their portfolios across different products such as bonds, stocks, cash, mutual funds, money market accounts, Individual Retirement Accounts (IRA’s), Certificate of Deposits (CD’s) etc. You might want to carefully consider the types of products offered by the brokerage firms.
Commissions & Fees:
One pays commissions when entering and exiting a trade. The commissions you pay vary depending on the brokerage firm. Some brokers might even negotiate the commissions based on the account activity and size.
When choosing a broker you should be aware of the fees they charge. Ask them if they have account maintenance fees, inactivity fees or any penalty charges for not maintaining minimum balances or for withdrawing funds.