Hiring a Broker


Essential Points to keep in mind When hiring a Broker

When hiring a good broker you must consider few important steps below:

• Markets:

The first and the most essential you need to consider about the broker you are going to hire is that they allow you to easily trade in foreign exchange markets that you are particularly interested in.

• Maintenance Fee:

A broker charges two main types of fees. The first fee is the maintenance fee that is fixed and used to maintain your account – that you must have to pay no matter you are involved in a trade or not and the second fee, a broker charge as commission, that you pay when you made any trade. Discount brokers usually won’t charge any fees.

• Per share commission:

However, there is a big variation between per share commissions about the commissions required for trades. There are some brokers who set the commissions before making any trade and that commission is according to the total sum of shares traded.

Such type of brokers is suitable for shareholders and dealers that usually trade smaller volume stocks.

• Commission per trade:

These are the brokers that are opposite to commission per share brokers, there are some brokers who demand same charges for every type of trade no matter how big or small the sheer amount is.

These types of brokers are most convenient for investor or traders who usually trade in large volumes.