{"id":1539,"date":"2008-01-10T05:00:12","date_gmt":"2008-01-10T13:00:12","guid":{"rendered":"http:\/\/getrichslowly.org\/blog\/2008\/01\/10\/what-to-consider-when-opening-your-first-brokerage-account\/"},"modified":"2024-03-05T14:28:34","modified_gmt":"2024-03-05T21:28:34","slug":"what-to-consider-when-opening-your-first-brokerage-account","status":"publish","type":"post","link":"https:\/\/www.getrichslowly.org\/what-to-consider-when-opening-your-first-brokerage-account\/","title":{"rendered":"What to consider when opening your first brokerage account"},"content":{"rendered":"
This article was written by Dong<\/b>, who writes about personal economy<\/a> at Ask Dong<\/b>.<\/i><\/p>\n Who can forget their first time? I certainly can’t. I was 22 and fresh out of school. The NASDAQ was around 4000, and young turks like myself were getting jobs that we had no business holding. The times were good. Even if I couldn’t work for a dot-com, there was no reason for me not to invest in them. The world was my oyster.<\/p>\n I opened my first real brokerage account with only one in thing in mind \u2014 I wanted the cheapest trades possible. At the time, Datek offered the best price at $9.99 a trade. This wasn’t my first account, but it was my first account as an adult.<\/p>\n While my choice of Datek back in 1999 wasn’t a bad one, I realize in hindsight that I didn’t go about choosing a broker in a particularly systematic manner. Today, the options are more numerous, and the services provided more comprehensive, but there are still the same factors to keep in mind, including:<\/p>\n How one weighs each of these factors is a matter of personal preference and need. In my view, there are basically four types of investors. I’ve listed them below and ranked in order the factors to consider, from most important to least important.<\/p>\n A clueless individual isn’t an investor per se<\/i>, but rather someone who needs access to a lot of educational resources. Even if someone decides to be a relatively basic investor, and invest only in index funds, that someone should understand the decision to do so. I think it’s great to follow a tried-and-true method of investing like using index funds exclusively. But to do so without any education is still foolish.<\/p>\n Important factors for new investors are:<\/i> customer service, user interface, cost, investor research, mutual fund selection, customer reports.<\/p>\n<\/span>Important Factors<\/span><\/h2>\n
\n
<\/span>Completely Clueless Investors<\/span><\/h2>\n
<\/span>Passive Index Fund Investors<\/span><\/h2>\n