NEW TO INVESTING
Getting Started
First things first – do you know what you want to invest in?
There are numerous of ways to invest your money and finding what works best for you can sometimes take years. For the purpose of this series, I will be focusing on investing money in the stock market.
After going through this series, you will be well equipped to buy and sell stocks at your leisure without any help from financial professionals. Not only will this save you a money in fees, but it will also give you the freedom to manage your own portfolio & to be in control of your money.
Before you can start buying and selling stocks, you need a brokerage account. A brokerage account is essentially an agreement between an investor and a licensed firm that is used to trade equity (stocks). This account is where you would deposit money into and place orders to buy stocks.
A quick Google search would reveal there are a number of options when it comes to opening a brokerage account. In Canada, each big bank has its own broker. This is very appealing to those who prefer to view & manage their money on the same platform. Personally, I bank with TD and for convenience sake, I use TD Direct Investing as my broker. Through using this avenue, I can both see my banking and my investment information on the same screen.
Another great option that I would highly recommend (mainly for their low trade fees) is Questrade. Unlike most brokers that charge $9.99 / trade, Questrade offers a much more competitive commission of $4.95 / trade. Additionally, if you are looking to buy ETFs, you can purchase these commission-free on Questrade. This is highly advantageous as you can dollar cost average your portfolio (of ETFs) with no commissions. If you are looking to save some money on your transactions, or plan to buy and sell stocks on a frequent basis, Questrade is a great option.
At the end of the day, selecting which broker to go with is personal preference. Some have their advantages (easy navigation, clean design) while others may offer more features (stock screening tools, financial reporting). With that said, it is almost difficult to sign up with a ‘bad’ broker – it just comes down to personal preference.
Once a broker has decided on, it’s time to open an account!
