Choosing the right derivatives broker is a crucial step for any beginner investor, as the broker you select will be your gateway to the financial markets.
A broker's platform, fees and range of services can significantly impact your overall investment experience, performance and long-term success.
This comprehensive guide will help you identify the key factors to consider and the red flags to watch out for whether you are choosing your first broker or searching for an alternative one.
1. Regulation and reputation
Your first consideration should be the broker's regulatory status and reputation. Regulation ensures that the broker adheres to established financial rules and operates fairly and transparently.
In South Africa, brokers should be regulated by the Financial Sector Conduct Authority.
A solid reputation, backed by favourable customer feedback and an established presence in the industry shows reliability.
Watch out for brokers not regulated by any credible authority or with a history of customer complaints or legal issues. Unregulated or poorly regulated brokers pose significant risks, including fraud or unethical practices.
2. Fee structure: commissions and other costs
Diese Geschichte stammt aus der November 12, 2024-Ausgabe von The Citizen.
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Diese Geschichte stammt aus der November 12, 2024-Ausgabe von The Citizen.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
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ATTRACTION: SOMETHING FOR EVERY COMPANY AND BUDGET
NO COMPLACENCY
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