If you want to invest your money on the stock exchange, you certainly cannot do it yourself, only with the help of and through a brokerage agency. You choose the broker you wish to cooperate with and then create a brokerage account, i.e. a tool that allows you to freely invest your capital, including by buying and selling securities such as shares and bonds. How to choose the best brokerage account?
Define your expectations and preferences
The starting point when selecting a brokerage account should be what you are expecting from it. It is natural that you want to use it to invest on the stock exchange, but is it supposed to be only the Polish stock exchange, or are you also aiming at global stock exchanges? Perhaps you also wish to use your brokerage account to purchase participation units in investment funds or participate in offers on the primary market — IPOs and invest on the Catalyst market? All of this determines, to a certain extent, the choice of the specific brokerage account (find out more).
Investors from the bond market, who make long-term investments, would be satisfied with a different account than those who conclude transactions on the stock exchange on a daily basis, i.e. engage in “day trading”.
Costs related to a brokerage account
For the vast majority of future investors or people who already have their first experience with investing on the stock exchange, a very important factor in choosing a brokerage account will be the related costs. Brokerage agencies determine them in different ways. Most of them collect commissions on transactions carried out at the client’s request. Naturally, the lower the commission, the better for you.
What is also important is how much you will pay for opening a brokerage account and using it. You may encounter brokerage agencies that charge a monthly fee for your account. Many agencies do charge nothing for opening a brokerage account, but there are some in which more than PLN 50 per year needs to be paid for using the account.
Technical assistance and high quality of service
An important issue to be considered when selecting a brokerage agency and an investment account is the quality of services offered by the broker and whether it provides comprehensive technical assistance, preferably in Polish — this is particularly important if you are not fluent in English and want to invest in this way on the securities market.
Online or over-the-phone customer service has already become a standard. A good solution for you as an investor is when the brokerage agency appoints an account manager who can always answer your questions. In this context, additional services that you may have access to via your brokerage account are also important. Together with your brokerage account, you often gain an opportunity to keep track of market commentaries, technical analyses and indicators that allow you to make the most rational decisions.
It is even better if you can also use investment advice at the brokerage agency as its client. A qualified, experienced broker with adequate competencies may suggest the best investments for the given level of acceptable risk.
Adjust the brokerage account offer to your needs, paying attention to its service, functionality and the costs you will have to incur in connection with it.