It is known that opening your first investment account can be a bit overwhelming, so we prepared a few tips you should take into account before taking this big step!
Not everybody knows how to open their first investment account. If you are about to open this kind of accounts, then you should know some essential points.
The most important thing to know is which are the options and benefits every investment company offers. Without this basic information you won't know which option suits you best.
This is the main aspect you should analyze before opening your investment account.
There are account maintenance fees, rollover fees, management fees, etc. Every company has them, so you should start by eliminating those with the higher fees.
The ideal fee does not exceed the 5%. A higher average may not seem that much at first, but it definitely will be over the years.
2. Type of funds and accounts
Before choosing your investment accounts you should analyze every option available.
You should get to know all the types of funds and the type of diversification they offer. The companies will also give you insight of returns, the stocks involved in index or mutual funds, distribution of dividends, etc.
3. Check the companies' history
Before you open your account, you should investigate the history of the company you've chosen.
Check how long they have been in the market, if they received several negative references and if they have a shady background. Make sure you trust the financial company that is about to handle your investments.
4. Transfers time
Although it's not essential, you should pay attention to the amount of time the money transfers take.
This will be an important point once you are ready to jump on some bonds or stocks, or when you want to move your money back to your bank accounts.
There will obviously be a delay, but it should not take longer than 2 or 3 days.
5. Security options
Cyber security is crucial to ensure your money. So you must take precautions!
Make sure that the financial company you choose grants strong cyber security measures, like tokens, text alerts or thumb ID.
6. Customer service
Ask the financial companies how their customer service works. They will be the ones who will help you out when you need special advice, so make sure you chose one that counts with experts in finance in their staff.