In the context of declining rates on bank deposits, alternative sources of passive income are becoming increasingly in demand. Russians who have spare cash began to take an active interest in the peculiarities of investing in stock markets and the intricacies of working with securities.
Citizens and organizations are not allowed to participate in exchange trading on their own. To start investing and conducting transactions on a financial exchange, you need to enlist the support of a reliable intermediary - a broker (a licensed company with access to world exchanges) - and with his help open a brokerage account.
Brokerage account
Open
Concept and purpose
Hi all.
Did you know that in 2021 there was just a huge jump in brokers opening accounts with them by ordinary citizens. This is due to many obvious and not obvious reasons. A lot of people began to actively scour the Internet with questions about what a brokerage account and the market are. Even a decent drop in the market in March 2021 did not cause everyone to run away from the market in fear. On the contrary, such interest in the market is simply a historical moment to attract clients to the exchange. And if you add aggressive advertising of brokers to this, the effect is multiplied many times over.
In July 2021, the total number of ordinary individuals attracted to the Moscow Exchange has already reached almost 6 million people. In July alone, when market activity is usually reduced, almost 299,000 brokerage accounts were opened.
And analysts are simply confident that the number of individuals attracted to the exchange will only grow until the end of the year. Moreover, deposits in banks are especially unpopular among citizens this year. And in the period April-June, in general, more than 200 banks showed the dynamics of individuals’ funds below 0.
But the influx of brokerage funds in just half a year amounted to 1.5 trillion. rubles And this is approximately the same as for the entire 2019.
1. How to increase your brokerage account from 50,000 to 100,000 rubles. Description in the VKontakte group
2. How to increase your brokerage account from 50,000 to 100,000 rubles. Description in the group In the telegram channel
A brokerage account is an account for performing various trading operations with various assets in the form of bonds, stocks, options, futures, currencies, etc.
It is impossible for an ordinary person to come to the stock exchange and trade without a broker on the stock exchange. On the stock exchange, such activities can be carried out by special professionals who were carefully selected in advance by the Central Bank.
The Central Bank imposes special requirements on companies that want to carry out brokerage activities. If the applicant complies, he receives a license for both brokerage and depository and dealer activities.
You can always look at the current list of brokers who have received a license on the Central Bank website and feel free to open a brokerage account with them.
List of brokers on the Central Bank website
Of course, among a wide selection of brokers such as banks and management companies, other important analyzes must be carried out. After all, the conditions for servicing a private client with a particular broker may differ significantly from the conditions of another broker.
Well, there is also an interesting opportunity on the same website of the Central Bank: you can look at those brokers whose licenses to carry out brokerage activities have been revoked.
List of brokers whose licenses were revoked by the Central Bank
So, let's figure out how to open a brokerage account for an individual. Moreover, I recently opened a brokerage account with one of the leading brokers in Russia, Finam. Of course, I already have a brokerage account with BCS, but for the project “How to accelerate 50,000 to 100,000 rubles,” I decided to open another brokerage account. Join the project on social networks, it will definitely be useful and interesting for you.
Is it worth opening an account for trading on the stock exchange with Sberbank?
A novice investor is in a difficult position due to lack of information. It is necessary to select an investment object and find a bona fide intermediary. Market operations must be carried out by a licensed brokerage company that enters into transactions on behalf of the client.
By opening a brokerage account with Sberbank, you receive a number of advantages:
- There is no need to come to the office, sign an agreement and register keys for transactions on various platforms.
- The opening of the office takes place online. Download the mobile application (Sberbank.Investor) or the trading platform for PC QUIK.
- The money you earn can be withdrawn to a bank card or deposit.
- It is enough to start work with a minimum amount in rubles and foreign currency (from about 1000 rubles).
- The Analytics Center sends out newsletters and reports that allow you to choose an investment idea. Experienced professionals provide forecasts and provide the latest news that may influence investment decisions.
- A broker for private investors offers to select a market segment. The stock market deals with bonds and shares, depositary receipts. The futures market is focused on options and futures. The exchange rate is tied to the exchange rate between the dollar and the euro.
The reputation of Sberbank is beyond doubt. Long-term work in the markets has allowed us to accumulate experience, open subsidiaries and offer a range of services to private clients.
In what format can I use a brokerage account?
The most common way to maintain a brokerage account for an individual is to independently make trading decisions to buy or sell some assets with their own money. It’s clear, I think that the money will be taken from the brokerage account.
And the broker will simply help you technically and legally, automatically, using programs and its services, to carry out these orders. In other words, you will give him orders to do this or that, and he will first check:
- Do you have the opportunity to do this (what is important here is the amount of money in the brokerage account, and your previously opened transactions, is it even possible to work with such assets or platforms).
- He will take a reward for this, and thus his enterprise, together with all its employees, will flourish.
Important! The broker himself, when trading independently, cannot manage your money or carry out any operations.
What can you say about trust management? This is where the money is transferred to the broker and the manager will work with it. Well, it’s worth knowing that trading on the stock exchange through a broker can only be done with your own personal money, or maybe on a margin: you trade with credit funds.
I do not advise either beginners or experienced traders to do this. You should still strive to trade with your own money. Well, a very popular area in recent years of interaction between an ordinary individual and a broker has been the opening of an individual investment account.
This type of investment was invented by the state to attract investments to the stock exchange and legalized this activity. When investing on the stock exchange, subject to certain conditions, you will receive guaranteed income through a 13% tax refund. I talk about this in more detail here.
What services does the broker offer?
The broker interacts with the client as follows:
- the broker opens a special trading account for the client, from which the participant carries out activities on the exchange;
- the intermediary, at the expense of the investor, in his interests and taking into account his wishes, can purchase and sell various financial instruments;
- Based on his own decision and strategy, the client sends orders to buy or sell securities or currency, and the intermediary conducts the transaction;
- the broker transfers the funds received from the transaction (after deducting the commission specified in the agreement) to the investor’s account;
- the intermediary can also perform additional functions: current analytics, recommendations to the investor regarding trading strategy, checking documentation for compliance with the requirements of current legislation.
Stock brokers do not use their own funds; they manage the capital of their clients. At the same time, some investors prefer to formalize trust management and not go into the intricacies of stock trading. In such a situation, the intermediary independently makes decisions regarding the purchase or sale of assets.
Brokerage account
Open
Features of a brokerage account
- One of the coolest features is the ability to have multiple brokerage accounts. But don’t confuse it with IIS - here you can only have one, otherwise you definitely won’t get any tax deductions.
- Through a brokerage account, you can carry out purchase and sale transactions not only with shares, but also with currencies. Why am I focusing on this? Because you can withdraw currency from a brokerage account to your bank account.
- Through almost any broker you can have access to assets not only traded on the Moscow Exchange, but also on the St. Petersburg or even other exchanges.
- There are no restrictions on holding a brokerage account.
- There are no limits on the amount of money in a brokerage account.
- You can deposit or withdraw funds at any time, but there are, of course, some nuances, but minor ones.
- The broker is also the tax agent of his client. It is he who calculates the amount of tax on income from trading operations in a brokerage account and transfers it.
Tariffs for brokerage services
Banks have higher rates than brokerage companies. But in general, the tariffs for the same operation differ slightly between different brokers. This point should be the last thing you worry about.
There is one interesting point to compare when choosing a broker: the commission fees. Brokerage commissions are usually set as a percentage of the transaction amount.
The range of commissions depends on the amount of each transaction, depending on the tariff plan and the client’s monthly trading turnover. Therefore, the larger the transaction amount, the greater the commission amount.
Check with the broker you are interested in for the availability of a tariff plan with fixed commission rates, for example, 100 rubles. for the deal. For a certain amount of investment in trade transactions, such rates are more profitable.
You also need to find out whether exchange fees are included in the broker's commission or are they paid additionally, and whether there is a monthly subscription fee. Is it possible to choose a lower individual tariff?
All this is important to know if you plan to become an active player on the stock exchange. In this case, commission costs can be a significant amount.
For inactive investors, this aspect of the issue will not play a significant role.
Each bank that provides brokerage services has its own line of brokerage products for working on the stock (securities), foreign exchange or derivatives market (futures, options). Each product has its own tariffs.
For comparison, here are the tariffs for the most popular products of broker banks:
| № | Broker bank/tariff | Commission for a transaction for the purchase/sale of shares | Commission for a transaction for the purchase/sale of currency from turnover | Margin lending (% per annum) | Brokerage account service fee | Min. invoice amount | Derivatives market/ Commission for concluded contract |
| 1 | Sberbank/Self | 0.125% - from 50 to 500 thousand rubles. | 0,010% | 17% | No | no condition | 0.50 rub. |
| 2 | Alfa Bank/Optimal | 0.04% of the transaction amount (including exchange commission) | 0,051% | 16,0% | No | no condition | 10.0 rub. |
| 3 | VTB/Investor/Standard | 0,0413% | 0,0413% | 16,8% | No | 100,000 rub. | 1.0 rub. |
| 4 | Opening broker/Universal | 0.057%, but not less than 0.04 rub. per deal | 0,014% | 16,4% | 295 rub. per month (reduced by the paid commission on transactions), if the value of the portfolio is less than 50 thousand rubles. per month) | no condition | 0.10 rub - 2.0 rub. |
| 5 | Promsvyazbank/PSB-Day | 0,05% | 0.05% - from 0.1 to 1.0 million rubles, 0.04% - over 1.0 million rubles. | 13,65% | No | no condition | 0.60 rub.-2.0 rub. |
| 6 | Uralsib Capital/ Main | 0.0472% up to 10.0 million rubles. | 0.04130% up to 1.0 million rubles. | 18-19% | No | no condition | 1.5 rub. |
| 7 | Gazprombank/Standard | 0.085% up to 1.0 million rubles. | 0.17% up to 10.0 million rubles, but not less than 5000.00 rubles. | 15-18% | No | no condition | — |
Differences between a brokerage account and a deposit
The most important difference is that a brokerage account is definitely not a deposit. After all, the deposit is used to save some of your money with some profit, which only covers or does not cover inflation.
Well, that’s how we usually talk! And here, although the income is small, you are guaranteed to receive it if you do not withdraw the money earlier. And you don’t even have to pay any deposit fees.
But in a brokerage account you can earn money using your own money from trading and dividends. And here, of course, no one will give you a guarantee that you will receive the income you expect. Moreover, you will also have to pay a commission for servicing a brokerage account. Even if you don't have any operations.
This is done in such a clever way to push clients to take active action with trading operations on the exchange.
The investor's profitability can be tens of times greater than the income from the deposit, which will already be registered in advance and you will know it. But in order for you to get such income, you will have to try hard.
But deposits also have a drawback. It turns out that only 1,400,000 rubles can be insured with us. And money on the stock exchange is not insured at all, no amount at all.
If you look at the minimum threshold for opening a deposit, many banks have it. Previously, everyone had a minimum threshold for a brokerage account. But now everything has changed in the market for such services and it is now possible to trade without any threshold amount.
In any case, from 285 companies providing brokerage services, you will definitely find the option you need. Moreover, exchanges, including the most common Moscow Exchange, register such brokers who have received a license from the Central Bank.
And on the Moscow Exchange website you can always see the list of brokers with whom the exchange works.
Reviews from investors and traders
Studying numerous reviews of novice and experienced traders allows us to notice one pattern. Characteristic advantages and disadvantages are noted.
Remote opening is highly appreciated, without the need to find an office and sign an agreement. Replenishment occurs without delay, especially through your personal account. Beginners are provided with comprehensive information. The manager is in touch and you don’t have to pay for the call.
The high commission for transactions is upsetting. Currency exchange must be carried out at the branch cash desk. Technical failures often occur, especially during an influx of traders. The work of the support service has been criticized.
How much does the service cost?
All of us who have come to the stock exchange again through some broker must understand that the broker is a non-charitable organization. This is an organization that literally hunts for every person who is over 18 years old and who shows at least some interest in investing and making money on the Internet.
His task is to promise you mountains of gold and invite you to speed up the process of conquering Olympus with his help.
But your task is completely different - you need fewer costs, either from investing or from active trading. You already understand that your money in a brokerage account will not be insured by any insurance company. What does this mean?
That you can let them down and the probability is very high. But in addition to the loss of this money, there are also commissions to the broker, commissions to the exchange, and fees for the depository.
What do I mean by this?
The loss of your capital will depend on your professional skills. The more literate you are, the less money you will lose. And initially, no matter how much you want to, you cannot 100% influence and control it.
But you can initially reduce the costs of servicing your brokerage account from different sides even on the shore.
In addition, you should never forget about the main principle of tariffs, which any broker presents in its tariff line under different sauces:
The larger the investment amount and the more often your transactions occur, the lower your commission.
It is beneficial for the broker that your account is large and that you trade more often.
You benefit from exactly the opposite: trading less, paying less commission, and putting your account at less risk of losing money from trading operations.
An ordinary ordinary investor needs to look for tariffs from leading brokers that suit his trading style. And here you don’t have to look at your neighbor or friend and take exactly the same tariffs.
Reviews of the broker online
You should read reviews on the Internet to understand the level of complaints about different brokers.
Negativity, unfortunately, is always present. There are no ideal brokers. The larger the broker, the more problems arise when interacting with investors. More powerful software and qualified staff are required.
But the general background of the reviews will allow you to understand which broker you should prefer, especially if you are just starting to trade on the stock exchange.
How to open a brokerage account
A few years ago, a brokerage account was not difficult, but more troublesome to open. Now this procedure takes about 10-15 minutes for most brokers.
The steps are quite simple and if they are generally described, they are as follows:
- Go to the official website of the broker you need
- Apply for opening a brokerage account.
- Generate a login and password to log into your personal account.
- Enter all confidential data, including screenshots of your passport, TIN, place of registration.
- Wait for confirmation of the correctness of the entered data by the broker’s specialists
- Sign a brokerage agreement
- Deposit funds into a brokerage account by transfer from a bank card or from an account (you can also at the broker’s office, or using the details)
- Choose the software through which you will trade. Now the “trick” of brokers is to provide the opportunity to trade and invest through a smartphone application. (Each broker has its own application. They spare no money on this, since they capture untapped clients who, under other circumstances, would never bother to trade on the exchange.)
The VTB broker has the “VTB Investments” application
At the broker Tinkoff-Tinkoff Investments
The broker is Sberbank-Sberbank Investor.
- Understand the program through which you will trade.
- Learn to calculate risks and entry volumes.
- Learn trading strategies for trading.
- You start trading.
The trading programs themselves are quite simple. You can basically work with anyone. I only work with Quik. And I won’t change this program for anything else yet.
Now many brokers have the opportunity to trade using this program if it is installed on your computer and connected to the broker's server using generated secret keys. You can also trade through any browser by logging in using your username and password with confirmation via SMS to your phone.
Instructions for setting up and installing Quik are available on my website in the Quik section, or more detailed materials are freely available in my Trading School.
Software used by brokers
An important criterion for choosing a broker is its software.
In modern conditions, it is a tool without which modern exchange trading is impossible.
Many programs and IT applications have been developed that help effective trading on exchanges.
There are programs for automatic trading, i.e. The computer does most of the work. And the investor makes adjustments to the settings.
The second type is professional trading programs that help analyze the market and make deals.
The third type of exchange trading programs is intended for training beginners.
Such programs include built-in functions that explain the principle of operation of the exchange and examples of concluding contracts.
You need to find out what program the broker uses. Today, two programs can be recommended for novice traders - QUIK (QUIK) and ATAS (ATAS).
The most common program in Russia and the CIS for working on the stock exchange is QUIK. Installation and use of the program are clear even to novice investors
- KVIC is an information and trading system. It provides access to trading on national exchanges, and also makes it possible to receive up-to-date information on the state of the market at any time, the ability to automate trading on the exchange; has a built-in programming language that makes it possible to create trading robots, etc.
- ATAS (full name “Advanced Time And Sales”) is a trading platform from OrderFlowTrading. With its help, you can conduct an in-depth analysis of the market situation: trading volume, analysis of orders for transactions, which increases the efficiency of investment. The program, just like KVIC, is intuitively understandable to novice investors.
In general, there are a lot of different programs to help traders. Such platforms/applications help increase a trader’s income.
Many brokers organize training for their newbie traders. For this purpose, you can open a test account - a demo account. Using the account, you can model and practice various behavior options with different financial instruments, depending on the situation on the exchange market.
Advantages and disadvantages
I don’t really see such obvious advantages of opening a brokerage account. If you are thinking about opening such an account and doing nothing, then it is better not to open it.
Simply depositing money into an account will not work either, because most brokers try to charge some kind of monthly subscription fees for such an account, even if there have been no transactions in a month. But even if you find a broker who does not charge such subscription fees, he will still try to reach you in one way or another to increase your activity in operations. And believe me, the guys working there are very savvy in such matters, who can inspire even a super cautious client. At a minimum, they will force you to work with bonds and ETFs.
Usually, when brokers attract new clients to the exchange, they position the opening of a brokerage account with a super opportunity: to increase their savings. This is something similar to a deposit, but there you get practically nothing from deposits, but here every attracted client has a chance to become a millionaire, even with a small account.
Important! It's true that you can become a millionaire through a brokerage account. It's not true that everyone has a chance.
If you analyze any advertising on the Internet, especially in 2020, then for some reason they rely on the importance of owning shares of Russian and foreign companies.
So what does this mean for the average ordinary investor?
Well, it’s unlikely that a newcomer who comes to the stock exchange will have enough money to become a full-fledged co-owner of some large company. And it is unlikely that he will create a stable passive source of income for himself.
What does it matter if a person owns shares of Apple?
What's the catch? What's the hype?
It's simple. We need new clients and new streams of rewards for the broker, and the exchange commission for providing its services.
But not everything is so simple! You will have to plow a lot and even then plow when you have already figured out some direction.
Opening a brokerage account will most likely bring more disadvantages and bitterness into your life if you are not ready for serious training and complete removal from “advertising nonsense” and scammers on the Internet.
But with all this, it is an excellent alternative to a deposit in any bank.
And even an IIS with its excellent tax deductions is, first of all, a risk of losing your money in a brokerage account and the risk of the state demanding that you return deductions previously paid to you if you violate the terms of maintaining an IIS,
Not a single broker, not even a stock exchange, much less a manager, can guarantee you any kind of stable profitability. And you won't even have insurance against losing money in your brokerage account during your trading operations with any assets.
No one will ever insure such activities.
But money on a bank deposit is insured. Do you feel the difference?
Well, by the way, the revocation of licenses from brokers also happens. This doesn't happen often, but it does happen. And the risk of your money lying in a brokerage account is significant in such a case.
The situation is much simpler if you are a long-term investor and hold shares of companies. Records indicating that you are the owner of the shares are kept in the depository, which means that the bankruptcy of the broker will not affect your owner status.
Well, when choosing a broker, you can easily succumb to the broker’s persuasion and sweet offers about additional services in the form of analytics, some kind of trading robots. Of course, these will not be free services.
Therefore, the choice of a broker, the choice of its services, and tariffs must be approached very competently. As an example, my analysis of brokers can help you.
How to earn?
Separately, we need to consider instruments intended for short-term investments. You can invest your own funds in:
- shares of well-known domestic companies;
- government and corporate bonds (coupon income);
- Russian and foreign funds (ETFs);
- options and futures, despite the high risks.
A novice trader works in the stock and derivatives markets. Playing on exchange rates brings instant profit or significant loss of funds.
Trading starts at 10 am and ends at almost seven in the evening (18.45-18.50). The evening session time (until 23.50) is reserved for futures and options.
Investment strategies can be divided into 3 types:
- Speculative - the essence of this scheme is to generate income from the difference in stock prices and currencies (buy cheaper and sell more expensive). To apply this strategy, you will need to delve into all the intricacies of technical analysis, learn to quickly respond to market changes, and competently use the forecasts of analysts and robo-advisors.
- Investment - based on wait-and-see tactics. The point is to select stocks that are undervalued by the market and that will show good growth rates in the future. To apply this scheme, you will need knowledge of fundamental analysis.
- Dividend - the essence of the strategy is to select shares of companies with high and stable dividend yields.
Where is the best place to open a brokerage account?
Where to open a brokerage account is entirely your decision. It must be conscious and deliberate. And it will depend on where you want to trade, what you want to trade. In my analysis, using a personal example, I tell you how I chose a broker. And by the way, with this broker I am leading the project “How to accelerate 50,000 to 100,000 rubles on the stock exchange.”
1. How to increase your brokerage account from 50,000 to 100,000 rubles. Description in the VKontakte group
2. How to increase your brokerage account from 50,000 to 100,000 rubles. Description in the group In the telegram channel
