Over the last few articles, we have discussed how to choose a broker. Now that you may have chosen one, what should you do?
Contacting your broker
Make sure you know how to contact your broker at a moment’s notice. After all, trading can require some very quick decisions. In fact, you should already figure this out before you choose a broker. This is because some brokers’ systems for contact can be uncomfortable for some. You should also make sure these avenues for contact run smoothly. A buggy website could be a problem for quick decisions.
You should have options to email them, call them, or text them.
Working with a broker
Generally, once you settle on a broker, you should open an account. Of course, different brokers work differently. However, this is usually the line of action to take. Then decide how much money you want to transfer into the account, usually via electronic transfer.
Then, you can start placing orders. This signals that you want to buy an asset. You can also get your broker to buy a stock at a specific price. This is a limit order. A similar system is in place for selling assets. So, if an asset value goes past a specific point, this system can sell before too much change.
The broker will notify floor traders on your behalf on what to do. These traders will keep in mind your possible price, and find other people willing to trade. They then have a set time and price for the sale, which they inform the broker of. The broker will then send you a confirmation that the transaction took place. This is so you know it went through. It could also inform you of possible fraudulent trades that you did not order.
After all that, you have completed a trade. Congratulations!