You cannot trade or invest in stocks if you do not start an account with a stock broker. Since investing in stocks has been considerably facilitated by the arrival of internet and computers, it is easy to register your account online with any stock brokerage company. Before you open an account, you need to figure out the minimum amount you need to deposit with your agent despite the type of account you go for from the site of your brokerage firm. Each agent has his own minimum account limitation, which might range from $500 to $10,000. The guiding principle before accepting the minimal deposit should be your financial plan as well as the facilities and services which the broker offers for a specific amount of minimal amount deposit.
A comparison-shopping in this regard would prove highly beneficial in long term trading. While it could be true that the minimum deposit you pay, the less you get in kind of services also, there are a few brokerage firms that deliver far more value than the deposit they demand. They might not even charge you something if your account becomes inactive for a while. If you are beginner in stock investing, these advantages can prove to be of immense value in kind of risk free investments and savings. The next step is to select an account. You can choose an:
- Individual account
As the name implies, a single account is an investment account that is opened for a single person. You should have attained the age of majority, i.e., you should be 18 years old or over on your state of residence. The age of majority entitles you to full legal rights as an adult. Anyway, you also need to be a US citizen or a resident alien with a valid social security number. A resident alien is a person who’s a non-us citizen but resides in the USA and pays the taxes.
- Joint account
A joint account is an investment account that is opened for at least two individuals with the proviso that both individuals who open accounts must have attained the age of majority in their state of residence. Joint accounts can either be installed as joint tenants with rights of survivorship-JTWROS or as joint tenants in common-JTIC.
Opening both sorts of accounts is a simple procedure. It takes approximately five minutes to start an account. All you will need to do is to pick the account type you would like to start and fill in your personal info. You also need to read and affirm the subscriber agreements, including the ‘account arrangement’, ‘customer acknowledgment of danger’ and day trading hazard disclosure statement’. Besides these you are also required to abide by the exchange rules. So you need to read, understand and comply with the New York stock exchange and the New York stock exchange data subscriber agreements. You ought to read the investments with little money as you scroll down it to the bottom. Read both the segments of this agreement and assess both the boxes until you proceed.