A Word From Bob

As Seen & Heard

Contact Us

rss

Invest Yourself

The FREE Investment Newsletter That Really Works!

Opening an Account Bookmark

Now that you have a broker picked out, what is the next step? Well, that would be to actually open a brokerage account with them. This is how it all works:

The brokerage will send you an application in the mail that you need to sign and return. Along with

Now that you have a broker picked out, what is the next step? Well, that would be to actually open a brokerage account with them. This is how it all works:

The brokerage will send you an application in the mail that you need to sign and return. Along with that application you are going to have to send him a check. What is the check for? That is the money that the broker will use to buy your stock or option. Think of it as a checking account (in fact when you put money in a brokerage account, it actually does gain a minute amount of interest on the total balance). The money sit's in YOUR numbered account, and when you want to buy a stock, the broker has your money on hand. If you start your account with say, 10,000 dollars, and then call him up and say, "I want to buy 100 shares of XYZ " he will take out of you account the amount of money it costs to buy XYZ. (In this case XYZ is 50 dollars per share and you bought 100 shares so he would debit your account for 5000 dollars PLUS whatever that brokerage charges for commissions.) Similarly when you go to sell XYZ, the monies go right into your account, again less commissions. If you are doing it right, your account will be gaining monies each time you make a trade. So how do you get your money out? It's as easy as a phone call. Simply call the broker and request a check be sent to you for whatever amount you choose. It generally only takes about a week to get your money.

Up Next : Now What?
Return to Investing 101









b i u quote

Save Comment

Showing 11 Comments

I appreciate your efforts in preparing this post. I really like your blog articles.

This is really a great stuff for sharing. Keep it up. Thanks for sharing.

Avatar  ou degree results 11 months agoReply

unior & Senior Diploma in German & French November, 2016 results ... of UG (CBCS) Semester-I Inernal Marks for the academic year 2016-2017

Avatar  cheap air jordan last yearReply

I dont know what to talk about except that I have enjoyed reading Wonderful overall blogging site

Avatar  get followers apk last yearReply

Thanks for writing such a good article, I stumbled onto your blog and read a few post. I like your style of writing...

Avatar  get followers apk last yearReply

Thanks for writing such a good article, I stumbled onto your blog and read a few post. I like your style of writing...

Avatar  zxx0188 last yearReply

I just couldn't go away your website before suggesting that I actually loved the usual info an individual provide to your guests? Is gonna be again continuously to investigate cross-check new posts.

Avatar  zxx0188 last yearReply

I just couldn't go away your website before suggesting that I actually loved the usual info an individual provide to your guests <a href="http://www.sousvetementcalvinklein.fr">sous vetement calvin klein femme</a> Is gonna be again continuously to investigate cross-check new posts.

Broker is basically a person who can teach you a thing or two about stock exchange if we open an account on our own and try to invest on something without a proper research then we will lose all the money so broker is a person who keeps the money of your account and maintain as according to your need and also gives you suggestion that where to invest where to not.

Avatar  best essays last yearReply

Hey, thanks for letting me know how to open an account. I recently received a large sum and was looking to invest so this helped me out a lot. I am now going to get an essay writing company to work on my assignments.

Avatar  fendi replica last yearReply

Simply call the broker and request a check be sent to you for whatever amount you choose. It generally only takes about a week to get your money.

Social Media

Bob Recommends