How To Open A Stock Account? Which Securities Company Is Better To Open An Account With?

Opening a stock is the first step for novices to enter the stock market.

How to open it?

Go to a securities company to open an account on site or directly use your mobile phone or computer to open an account online.

Currently, the account opening process has become very simple. As long as you prepare your mobile phone, bank card and ID card, download the corresponding broker's APP, and follow the step-by-step instructions, you can successfully open an account. Just be careful not to download pirated apps.

If you are not familiar with mobile phone or computer operation, you can also go directly to the securities company to open an account on site. There are staff on site to guide you, similar to opening a bank account.

So which securities company is better to open an account with?

At this time, you need to understand some basic knowledge about stocks - buying and selling stocks will incur transaction fees, and these fees are the main cost of stock trading for us investors.

Transaction fees mainly include transaction commissions, stamp duties, and transfer fees (actually there are two types of fees: securities transaction fees and securities management fees, which are generally included in the commission, and the cumulative fee rate is less than one ten thousandth), so they can be ignored ).

The actual transaction commission interest rate is much lower than three thousandths, generally around three thousandths. It should be noted that the transaction commission starts at 5 yuan, and if it is less than 5 yuan, it will be calculated as 5 yuan.

In order to attract customers, some securities companies have increased transaction commissions to 0.2% or even 0.01%.

Is it better to open an account with a securities company with lower commissions?

Not really.

Newbies are often fooled by the small profits in front of them. In fact, the impact of trading commissions on retail investors’ funds is not that big. Many people's transaction amounts do not even reach the bottom line of commission funds. If the transaction amount is large, the number of transactions will generally not be too large. Those few dollars are just a drop in the ocean compared to the money you make or lose in the stock market.

The main factors we consider when choosing a securities firm are, first, whether it is convenient to handle business, and second, whether the stock trading software is easy to use.

Investing in the stock market is not done once you open an account. There may be other needs later, such as opening permissions for margin trading, GEM transfer, Shanghai-Hong Kong Stock Connect, etc. Some securities companies can handle it directly online, while some brokers can only handle it on site. The development levels of securities companies are different, resulting in different business scopes. Therefore, when choosing a securities company, you must examine its brokerage business strength.

Secondly, the stock trading software must be simple and easy to use, without problems such as being unable to trade or being very slow. Once you open an account, all your investment decisions and transactions are completed on the software, including your information sources, analysis tools, etc. Therefore, it is very important whether the software is easy to use.

When it comes to stock trading APPs, we have to talk about third-party securities trading APPs such as Flush and Oriental Fortune. Flush and Great Wisdom are third-party information service companies. They are not a securities company, but you can open an account on their APP and support securities transactions of nearly a hundred brokers.

(Source: Analysys Data)

When you choose a brokerage to open an account, you can first check whether apps such as Tonghuashun support opening accounts and trading with the brokerage. Try to choose a brokerage with strong comprehensive strength and third-party APP support, because the stock trading software experience of third-party securities trading APPs such as Flush is better.

Of course, many large brokerages do not support opening accounts and trading on third-party securities trading APPs. Therefore, when we choose a brokerage company, we try to choose one with strong brokerage business.

(Source: Online public information)

What should I do if the trading software of the securities firm I choose to open an account with is not easy to use or the service is not satisfactory?

That’s okay, we can open another brokerage. At present, my country's securities market implements the "one person, three accounts" policy. Investors can apply to open up to three A-share accounts in the same market.

Therefore, if we are not satisfied with the brokerage company where we opened the account, we can open another account at the new brokerage company without having to cancel the previous account. Isn’t it very convenient?

标签： #Stocks #Securities #Stock account opening #Securities trading #Investment