Monday, 15 December 2014

3 tips to get started in investing: selection of online brokerage

I spent a long time researching which brokerage to sign up with before I started my investing journey. I believe with the following 3 tips in mind, it will help you get started in your trading journey.

1. Protection of funds  
Does your broker offer protection or insurance for the money you deposited with them? What is the sum insured from your broker in the case of bankruptcy(50k, 100k and etc.)? Do note that some online brokers could be just executing the order and your shares are ultimately deposited in your CDP  account. For others like SCB online trading account, they will execute your orders and be the custody for your stocks.

2. Fees and Charges
Does your broker requires you to pay a monthly fee for data from exchanges? What is the commission buy and sell transactions? If you subsequently like to transfer your stocks into CDP or another brokerage, are there any fees involved?

3. Features
Will you be using your broker's platform to perform technical analysis or only using it for buying and selling? Most online brokerage have their own charting software which allow you to perform both fundamental and technical analysis. Some offer advanced buy and sell orders like stop loss, while others might be lacking in these features.

I am currently using Standard Chartered online equity trading account for mainly buying and selling of stocks for mid to long term. No margin and contra allowed.

Got other tips in mind? Leave a comment.


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Financial freedom = Passive Income > Expenses. Always remember that there are two sides to the equation of financial freedom. Beside working on how to improve our passive income through investing, we should never neglect the expenses portion. By striving to improve both side of the equation, we can achieve our financial goals and win in the game of money.

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