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You have decided to start investing in the stock market in order to capitalize on your savings and you want to open a brokerage account. At this point, many emerging investors are overwhelmed by options. In the long run, there is no better way to increase your wealth than to invest in the stock market. Instead, using an inappropriate broker could significantly affect your return on investment. You thought that finding a broker would be a quick process, but you just discovered that there are a growing number of options, and the flood of new information is overwhelming. Although there are a lot of brokerage houses to choose from, you can narrow your search based on some essential criteria, which will ensure that your trading is as efficient and, above all, as safe as possible.
How do you want to invest?
To choose a broker, you need to have an idea of how you want to invest. Here are some typical investment options that most brokerage firms can offer:
Classic Stocks - In the past, investors needed the direct assistance of a stockbroker to buy or sell securities, for example, over the phone. The industry has changed a lot in recent years, and top brokerage firms have developed easy-to-use online trading platforms and trading applications to allow anyone interested to invest on their own without relying on a broker. As a result, investing in stocks has become more affordable, as people are now able to buy shares with just a few clicks.
Cryptocurrencies - Virtual currencies have already become a product offered by more and more brokerage houses, but investing in these products is more risky, so trading these volatile assets remains a real "art". The difference between success and loss is given by the way you learn to choose the best investment in cryptocurrencies. A good alternative to consider is to trade cryptocurrencies without necessarily having the underlying assets, as in the case of CFDs for commodities, indices or currency pairs. In the case of Crypto CFD trading you do not own the asset itself, but you have a few benefits in addition to the classic trading: leverage, the possibility of short (short selling) that allow you to profit from price reductions or to protect yourself existing positions by temporarily "freezing" transactions until unwanted fluctuations pass
ETFs (Exchange Traded Funds) - are popular investment options because they include a wide range of assets. If you want to invest in any of these, then you should make sure that your broker has a wide range of funds available.
CFDs are much more flexible than traditional stocks, giving you the opportunity to take advantage of any price move, up or down, when the market moves according to your forecast. CFD trading allows you to open long (buy) trades if you think the price of a stock will rise, or short (sell) trades if you think the price will fall.
An important aspect, especially for traders at the beginning of the road, are the commissions of brokerage houses. For example, XTB offers 0% commission on trading shares with holdings and ETFs with holding, for monthly turnovers of up to 100,000 Euros.
In addition, XTB offers access to over 5,400 tools, which can be divided into two main categories:
1. Shares listed on more than 12 of the world's largest stock exchanges, including the WSE, NYSE, EURONEXT, and ETFs.
2. Forex-supported CFDs, Stock Indices, Commodities, Cryptocurrencies, Stocks and ETFs around the world
Find a regulated and licensed broker
Some brokers try to attract the interest of clients through interesting websites or attractive promotions, but trading on financial markets is done using real money, so it is essential to know that your funds are safe and the broker you trade with is regulated and authorized.
For example, XTB is a one-stop-shop investment company that provides traders within the same high-performance xStation platform with a diverse and integrated range of services, products and financial instruments suitable for any type of investor. They have had a presence since 2008, with a support team, and segregated bank accounts, so that investors' money does not leave the country. Last but not least, they are registered in the registers of the most important supervisory authorities in the world, including ASF, FCA and KNF.
When choosing a broker it is very important to understand all the costs associated with trading, depositing and withdrawing funds. It is very important that your broker has a section of the site dedicated to a clear presentation of all costs so that you do not have unpleasant surprises when you start trading.
It is very important to know if you can deposit or withdraw money at any time, and if your broker does not restrict these transactions. The methods of depositing funds should be diverse and secure, either by bank transfer or by secure online payments. Withdrawals should be possible without having to contact your broker by phone or email. Both deposits and withdrawals must be not only easy to make, but also fast. If you are unsure, it is always a good idea to test by depositing a smaller amount to try to withdraw - if all is well, then you can choose to invest more.
How to avoid losses
Every investor should be aware that investments are not always 100% profitable, because there is no investor, no matter how experienced, who has not had any losses. Not even the famous Warren Buffett.
XTB has a reputation for being the promoter of financial education about stock market investments. The broker offers a wealth of resources for investors from which they can learn and stay up to date with market developments, from daily webinars, free educational programs, to the variety of educational articles on the XTB website or regular financial analysis by analysts. known and experienced. XTB's research department prepares daily analysis and commentary on current events in the local and global stock market.
Once a real XTB trading account is opened, investors receive free access to all XTB Academy events. I can watch daily market analysis webinars, receive analysis reports, and contact my Account Manager at any time to discuss market opinions.
How to choose the best trading platform
Financial markets are dynamic and we often have to make decisions "every second" so as not to miss out on opportunities. Therefore, the trading platform must operate the real-time quote feed and respond instantly to orders and orders.
It is important to make sure that your broker invests enough in technology and provides a stable and secure trading environment. A platform that hangs for even a few seconds at a key moment, with the release of macroeconomic data or high market volatility, can cause considerable financial damage to your investment account. In the case of XTB, the company has over 100 IT developers who are constantly improving the xStation trading platform so that it fits any type of trader and no syncope occurs at the time of trading.
The platform must offer the possibility to trade anywhere and anytime. We need to make sure that the broker provides us with versions of the platform that are compatible with all your mobile devices (smartphone, tablet, smartwatch, etc.). It is very important to be able to place different types of orders - from instant order to pending order: Buy Stop, Sell Stop, Buy Limit, Sell Limit, Take Profit, Stop Loss, Trailing Stop, Close Losers / Winners / All , etc.
How big should your first deposit be?
Unfortunately, there is no simple answer to this question. XTB does not impose limits on the amount that a trader can deposit, he himself has to evaluate how much money he can allocate to this investment activity. First of all, you need to set your expectations and know your risk appetite. Keep in mind that if you have set ambitious trading goals, you may need more capital to meet them.
However, we recommend that you start with smaller amounts and increase the value of the deposit as you experience trading. And let's not forget the basic rule - you never invest money that you are not willing to lose.
What happens if the broker goes bankrupt
In the case of XTB, for example, segregated bank accounts in which customer funds are deposited keep these funds separate from company funds, so that in the event of bankruptcy or a similar event, the funds are returned to the customer instead of being treated as recoverable assets. to XTB creditors.
XTB is a member of the Investor Compensation Fund managed by KDPW - the Polish National Depository of Securities. Thus, the clients' funds are guaranteed 100% within the limit of 3,000 EUR and 90% for the amounts between 3,000 and 22,000 EUR in case of bankruptcy of XTB or similar events.
How to choose which companies to invest in or which stocks to buy
For starters, it may be a good idea to invest in economic sectors, areas that we understand and are comfortable with. At the same time, it would be reasonable to avoid sectors that seem to us to be a total mystery. The best companies we can invest in can often be found in the field in which we operate. Another method may be to invest in the products and services we use every day and whose value we understand. For example, if you're happy with your iPhone - you can invest in Apple stock, and if you watch Netflix every night - you can consider this company.
"Investing is easy, but not easy," Warren Buffet once said. The goal is to buy undervalued stocks with significant growth potential - the idea is simple. However, psychological factors make this difficult, as investors often behave irrationally because of emotions. Buying the best stocks is not enough - you should let the logic, not the emotions, prevail over the investment portfolio. Therefore, learning behavioral finance differentiates the most successful investors from the only good ones. In conclusion, it should be noted that some mistakes are inevitable, so the desire to learn from mistakes is an essential feature for traders and investors.
The XTB Trading Academy is the education section that gives you access to a huge amount of expertly prepared educational resources, including video tutorials, trading courses, articles, and more. The educational content is categorized according to different levels of experience (basic, intermediate and advanced) so as to increase your trading skills in each stage you find yourself in.
Disclaimer / Risk Warning:
Any opinions, research, analysis, pricing or other information provided as general market commentary are not investment advice. XTB shall not be liable for any loss or damage including and without limitation to, any loss or gain that may arise directly or indirectly from the use or reliance on such information. We inform you that information or research based on historical data does not guarantee future performance or results. 72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take a high risk of losing your money.
How do you want to invest?
To choose a broker, you need to have an idea of how you want to invest. Here are some typical investment options that most brokerage firms can offer:
Classic Stocks - In the past, investors needed the direct assistance of a stockbroker to buy or sell securities, for example, over the phone. The industry has changed a lot in recent years, and top brokerage firms have developed easy-to-use online trading platforms and trading applications to allow anyone interested to invest on their own without relying on a broker. As a result, investing in stocks has become more affordable, as people are now able to buy shares with just a few clicks.
Cryptocurrencies - Virtual currencies have already become a product offered by more and more brokerage houses, but investing in these products is more risky, so trading these volatile assets remains a real "art". The difference between success and loss is given by the way you learn to choose the best investment in cryptocurrencies. A good alternative to consider is to trade cryptocurrencies without necessarily having the underlying assets, as in the case of CFDs for commodities, indices or currency pairs. In the case of Crypto CFD trading you do not own the asset itself, but you have a few benefits in addition to the classic trading: leverage, the possibility of short (short selling) that allow you to profit from price reductions or to protect yourself existing positions by temporarily "freezing" transactions until unwanted fluctuations pass
ETFs (Exchange Traded Funds) - are popular investment options because they include a wide range of assets. If you want to invest in any of these, then you should make sure that your broker has a wide range of funds available.
CFDs are much more flexible than traditional stocks, giving you the opportunity to take advantage of any price move, up or down, when the market moves according to your forecast. CFD trading allows you to open long (buy) trades if you think the price of a stock will rise, or short (sell) trades if you think the price will fall.
An important aspect, especially for traders at the beginning of the road, are the commissions of brokerage houses. For example, XTB offers 0% commission on trading shares with holdings and ETFs with holding, for monthly turnovers of up to 100,000 Euros.
In addition, XTB offers access to over 5,400 tools, which can be divided into two main categories:
1. Shares listed on more than 12 of the world's largest stock exchanges, including the WSE, NYSE, EURONEXT, and ETFs.
2. Forex-supported CFDs, Stock Indices, Commodities, Cryptocurrencies, Stocks and ETFs around the world
Find a regulated and licensed broker
Some brokers try to attract the interest of clients through interesting websites or attractive promotions, but trading on financial markets is done using real money, so it is essential to know that your funds are safe and the broker you trade with is regulated and authorized.
For example, XTB is a one-stop-shop investment company that provides traders within the same high-performance xStation platform with a diverse and integrated range of services, products and financial instruments suitable for any type of investor. They have had a presence since 2008, with a support team, and segregated bank accounts, so that investors' money does not leave the country. Last but not least, they are registered in the registers of the most important supervisory authorities in the world, including ASF, FCA and KNF.
When choosing a broker it is very important to understand all the costs associated with trading, depositing and withdrawing funds. It is very important that your broker has a section of the site dedicated to a clear presentation of all costs so that you do not have unpleasant surprises when you start trading.
It is very important to know if you can deposit or withdraw money at any time, and if your broker does not restrict these transactions. The methods of depositing funds should be diverse and secure, either by bank transfer or by secure online payments. Withdrawals should be possible without having to contact your broker by phone or email. Both deposits and withdrawals must be not only easy to make, but also fast. If you are unsure, it is always a good idea to test by depositing a smaller amount to try to withdraw - if all is well, then you can choose to invest more.
How to avoid losses
Every investor should be aware that investments are not always 100% profitable, because there is no investor, no matter how experienced, who has not had any losses. Not even the famous Warren Buffett.
XTB has a reputation for being the promoter of financial education about stock market investments. The broker offers a wealth of resources for investors from which they can learn and stay up to date with market developments, from daily webinars, free educational programs, to the variety of educational articles on the XTB website or regular financial analysis by analysts. known and experienced. XTB's research department prepares daily analysis and commentary on current events in the local and global stock market.
Once a real XTB trading account is opened, investors receive free access to all XTB Academy events. I can watch daily market analysis webinars, receive analysis reports, and contact my Account Manager at any time to discuss market opinions.
How to choose the best trading platform
Financial markets are dynamic and we often have to make decisions "every second" so as not to miss out on opportunities. Therefore, the trading platform must operate the real-time quote feed and respond instantly to orders and orders.
It is important to make sure that your broker invests enough in technology and provides a stable and secure trading environment. A platform that hangs for even a few seconds at a key moment, with the release of macroeconomic data or high market volatility, can cause considerable financial damage to your investment account. In the case of XTB, the company has over 100 IT developers who are constantly improving the xStation trading platform so that it fits any type of trader and no syncope occurs at the time of trading.
The platform must offer the possibility to trade anywhere and anytime. We need to make sure that the broker provides us with versions of the platform that are compatible with all your mobile devices (smartphone, tablet, smartwatch, etc.). It is very important to be able to place different types of orders - from instant order to pending order: Buy Stop, Sell Stop, Buy Limit, Sell Limit, Take Profit, Stop Loss, Trailing Stop, Close Losers / Winners / All , etc.
How big should your first deposit be?
Unfortunately, there is no simple answer to this question. XTB does not impose limits on the amount that a trader can deposit, he himself has to evaluate how much money he can allocate to this investment activity. First of all, you need to set your expectations and know your risk appetite. Keep in mind that if you have set ambitious trading goals, you may need more capital to meet them.
However, we recommend that you start with smaller amounts and increase the value of the deposit as you experience trading. And let's not forget the basic rule - you never invest money that you are not willing to lose.
What happens if the broker goes bankrupt
In the case of XTB, for example, segregated bank accounts in which customer funds are deposited keep these funds separate from company funds, so that in the event of bankruptcy or a similar event, the funds are returned to the customer instead of being treated as recoverable assets. to XTB creditors.
XTB is a member of the Investor Compensation Fund managed by KDPW - the Polish National Depository of Securities. Thus, the clients' funds are guaranteed 100% within the limit of 3,000 EUR and 90% for the amounts between 3,000 and 22,000 EUR in case of bankruptcy of XTB or similar events.
How to choose which companies to invest in or which stocks to buy
For starters, it may be a good idea to invest in economic sectors, areas that we understand and are comfortable with. At the same time, it would be reasonable to avoid sectors that seem to us to be a total mystery. The best companies we can invest in can often be found in the field in which we operate. Another method may be to invest in the products and services we use every day and whose value we understand. For example, if you're happy with your iPhone - you can invest in Apple stock, and if you watch Netflix every night - you can consider this company.
"Investing is easy, but not easy," Warren Buffet once said. The goal is to buy undervalued stocks with significant growth potential - the idea is simple. However, psychological factors make this difficult, as investors often behave irrationally because of emotions. Buying the best stocks is not enough - you should let the logic, not the emotions, prevail over the investment portfolio. Therefore, learning behavioral finance differentiates the most successful investors from the only good ones. In conclusion, it should be noted that some mistakes are inevitable, so the desire to learn from mistakes is an essential feature for traders and investors.
The XTB Trading Academy is the education section that gives you access to a huge amount of expertly prepared educational resources, including video tutorials, trading courses, articles, and more. The educational content is categorized according to different levels of experience (basic, intermediate and advanced) so as to increase your trading skills in each stage you find yourself in.
Disclaimer / Risk Warning:
Any opinions, research, analysis, pricing or other information provided as general market commentary are not investment advice. XTB shall not be liable for any loss or damage including and without limitation to, any loss or gain that may arise directly or indirectly from the use or reliance on such information. We inform you that information or research based on historical data does not guarantee future performance or results. 72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take a high risk of losing your money.
