Setting Up A Brokerage AccountShane Leonard, CFA

1. What is a brokerage account?

2. What do I need?

3. Dos

4. Don’ts

What we’re going to cover

1. What is a brokerage account?

2. What do I need?

3. Dos

4. Don’ts

What we’re going to cover

• It’s like a bank account

• Except not for the cash you own

• But for the stocks you own

• And just like a bank account

- statements

- online access

- lots and lots of mail

What is a brokerage account?

• Are you wondering if Stockflare provides brokerage accounts?

• No

- holding peoples money is a regulated business

- so is advising people

- we are an information business

- not a financial company

• Sorry

What is a brokerage account?

• Here are some of the largest players in the US

What is a brokerage account?

1. What is a brokerage account?

2. What do I need?

3. Dos

4. Don’ts

Setting up a brokerage account

• A hideous questionnaire

• Who are you? (driving licence, passport, tax details, etc)

• Where do you live (proof of address)?

• Money

- minimum balance

- no credit cards

• Patience

What do I need?

1. What is a brokerage account?

2. What do I need?

3. Dos

4. Don’ts

Setting up a brokerage account

• Choose an online low-cost broker

- make sure they are a reputable business

- check the fine print for hidden fees

- check the minimum balance

• Explore their site for data and tools

• Unsubscribe from their marketing

• Expect lots of mail

Dos

1. What is a brokerage account?

2. What do I need?

3. Dos

4. Don’ts

Setting up a brokerage account

• Don’t open a “margin account”

- brokers may offer to lend you money to double up

- this is speculation and great way to lose money

• Don’t try trading options

- another way to speculate

• Don’t buy the Wall Street Journal

• Don’t ignore the mail

Don’ts

Setting Up A Brokerage AccountShane Leonard, CFA