How to open a Stock Brokerage Account for US OTCBB, TSX, CNSX, Frankfurt, Euronext, NYSE, GXG markets, NASDAQ, ASX, JSE, and many more…
Step 1: Preparing yourself for opening a stock broker trading account
One of the first steps to opening a brokerage account is to know you are ready to open a brokerage account. You generally need to have a Government Issued valid passport and ID, you must need a bill or something to prove your home address from the last 3 months, some people will be asked for a Bank reference, and a W8 for non-Americans or W9 form to be filled out by American’s. For asset protection, many people will place their trading accounts in a Corporate structures, our high-level consultants at RST Capital can build the structures for you. (firstname.lastname@example.org) If this is the case, RST will prepare all the corporate documentation for you to open up a brokerage account for you as a corporate client versus an individual. There are several benefits as to why you would want to put your shares and trading into a structure. However, its best to ask those questions to the provider.
Step 2: Know Your Client, Know Your Self, Day Trader, Casual Trader, Capital Preservation, etc
The broker dealer will give you a questionnaire, which will include several questions about your net worth, your trading styles, your investment interests, your desire for risk and reward. Once this document is filled, the individual is known as far as an investor profile goes, and any well trained broker will give guidance to the desires and adequacy of the investor profile. When you build your profile, remember, it also may set-up limitations. For example, if you say you want low risk investments and capital preservation, and then write that you want to purchase a speculative stock, your broker will be obligated to not let you make the purchase or strongly advise against it based on your opening account remarks. Therefore, if you desire to invest in equities, you may have a more speculative profile than low risk. Also, when filling in the documentation, if you have zero experience, this also can limit what you invest in, therefore moderate to well experienced often means you have more ability to day trade than for example someone with no experience who will be hand held and likely limited to anything over $1 in equities, or certain markets or products with low risk, low returns. Therefore, filling in your account details is very important that you consider how much flexibility you personally want as you fill in your documentation. However, it is also vital you be honest to yourself as to what you want to do, and the broker, who will become your new best friend.
Step 3: Load the Account
Your account is open, you now load the account with capital. If it is a corporate account, than your corporation needs to have a Bank account with money in it, and it needs to be sent directly from there. Money can only be sent by the person whose name is on the account. Therefore, if the account is in your name, money needs to be wired from your account, or a check needs to be deposited from your account to this new brokerage account. Once the adequate capital is put into the account, you are ready to start trading. It is important to note that if you are a day trader and trade in options and derivatives, you need a minimum US $25,000 to trade the market under US regulations and supervision. Otherwise, most equity trading accounts can be opened with $2,000 to $10,000 depending who the brokerage house is.
Step 4: Depositing Stock Certificates or Transferring shares
Once the account is open and capitalized, you can also deposit shares into the brokerage account. Whether it is US OTCBB certificates clearing and deposit, German Shares, TSX or CNSX Shares or Stock, or NYSE Euronext, the broker receives the certificate within their clearing house name, and then deposits the shares into your account. It is also important to clear the shares electronically when possible, especially all shares under $1 generally need to be electronic already before any broker will take them. Shares under $1 are considered penny stock and do not clear usually without a legal opinion from a Law firm with over 10 Lawyers, and they must go into the brokerage account from the transfer agents systems directly and electronically. (DWAC, Tellex, Swift, CREST, CLEARSTREAM, EUROCLEAR, STRAIT)
Step 5: Watch this video and open an account with RST Capital
Of all of the online companies and video’s we have reviewed, this company has a really straightforward video on how to open a stock brokerage account and how to trade stock.
Go to www.rstcapital.com for more information and to download the application documents for your new Brokerage Account.