Ads. By IQ Option

How to Choose a Broker If You Have a Small Trading Account

Ads. By IQ Option

So, if you’ve got a small account, which I’m guessing many of you do, and there’s nothing wrong with that, you’re really looking for that best broker for you. And, particularly, when you’re getting started, when you got that small account, choosing the right broker can make a big difference.

And today, I’m gonna give you three things to look for when you make that decision.

So the first thing I want you to look at and this might be the most important out of all three. I’m starting, I’m coming out swinging here.

Commissions and Fees.

You know, there’s, the dirty little secret of the brokerage world, the trading world is, I mean, it’s a very lucrative business for the brokers, and they particularly like, you know, it bums me out, but they like to take advantage of the small guy.

The big guys, the guys with the big accounts, the guys that are trading all the time,
the hedge funds, they pay way, way less per trade, per transaction that you do. The brokers know that they can capitalize on the little guy. Bums me out, but it is what it is.

So, I want you to focus really on the per trade commission, the per share commission, look for other fees. Sometimes they’re charging you monthly fees for data, for charting, sometimes they charge you monthly fees for having an account open.

You might not even trade, and you might pay a monthly fee. So, what I want you to do, be diligent, and get out their rate schedule and really go over it because, man, if you’ve got that small account, 50 bucks here, 30 bucks here, 20 bucks here, it really adds up.

And you can have some good trades, and be, you know, break even, or red at the end of the month if you’re paying all these extra fees, and something I wanna, you know, quote, unquote plug is a great deal we have with Tradier.

But awesome brokerage, I love them. And what we’ve negotiated is if you are a AnjayToTrade customer, you do have to be a AnjayToTrade customer, but you get $14.99 unlimited trades a month, all fees included. So, you can trade as many times as you want, you get that $15 flat rate from Tradier. And I mean, if you’ve got a small account, it’s a huge tool.

There’s other great brokers out there, but if you’re looking for one with low fees, I don’t know, with AnjayToTrade, I don’t know of anybody else out there that low of cost, flat rate, that’s unique in this industry.

Second thing to be aware of is

The Account Minimum to Open an Account.

You know, you might be doing your brokerage research, you might ask some friends, you might ask some trading buddies, and they’re bragging about this amazing brokerage account.

But many, many brokers, well pretty much every broker, as far as I know, has a minimum. It could be 50 bucks or 100 bucks, or 500, or 50,000 or 5 million, but make sure you know that account minimum before you get excited about opening this account because they may let you do all the paperwork, get all started, get everything set up.

You wait those couple days for them to approve it, this all gets done.
And then they’re like, “Okay, to start trading, “you gotta deposit $25,000, you gotta deposit $50,000”, and if you’re reading this article, Googling, you know, how to trade with a small account, that’s probably not you.

So, be sure to be aware of that minimum, and back to Tradier, $500 minimum to open an account. Great entry level way to get started and keep your cost low. So, be aware of the minimum and make sure you do your research.

Third thing I want you to be aware of is

The Tools That Your Broker Gives You

Now, I’m gonna get, I’m obviously, I’m obviously a little biased here. You’re on the AnjayToTrade YouTube channel, but I think the best software, the best charting platform, the best research platform out there is AnjayToTrade.

If you open an account with another, with a broker, they may give you some software, or they may give you just a webpage to enter orders, and then you gotta find the tools to actually trade with, to set your alerts, just to run screeners, you know, to use an algorithm to potentially, you know, automate trades.

So, make sure you know if your brokerage has those tools. And, again, I’m going back to Tradier, but the great thing about Tradier is it integrates directly into AnjayToTrade.

We also integrate with multiple brokers. So, don’t discount that fact. If you learn our charting, you learn our software, you learn how to do the ins and outs, you are more or less broker-agnostic, we can call it, because now you can have multiple brokerages set up in our platform, and it doesn’t really matter where you trade, you’re using the same interface, you got the same charts, your watchlists are all the same. So, don’t discount that.

I think back to when I got started trading. I started out with this broker, I was using their software, I’d get to know it. Then, I’d move to this broker, then I’d have to learn their software, I’d make mistakes because I was, you know, entering orders differently in the different packages.

So, be sure to check out their tools, and also, be sure to check out AnjayToTrade because the great thing is you’re broker-agnostic.

So, I hope these were helpful. Let me know below, have you chose a great low price stock broker? Drop the name below, always looking to share with the community.

And if you’ve found a, you know, I know in this article, I talked about Tradier a lot. But if you’ve found a great low price broker for new accounts, drop it in the comments below, I’d love to check them out.

Thanks for reading our article. Make sure to comment below with any trading relating question, we love answering your questions. Also, share with your friends, and if you’re looking to expand your trading knowledge, don’t forget to check out all of our other article.