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Tips for Choosing a Stock Broker

What comes to your mind when you hear the word stockbroker? Of course there will be very different views. Conglomerates, tycoons, rich people and have billions of capital may be half the picture that can be presented if you hear the word stockbroker.

In stock trading, you cannot work alone. But assisted by a representative agent from a company called a stockbroker. These stockbrokers carry out stock buying and selling transactions on orders from investors.

However, before dealing with the stockbroker, you should pay attention to many things. So you will not be exposed to fraud or the commission of the appropriate broker. The things that must be considered in choosing a broker are as follows.
  • Understand the broker's capital structure
  • Knowing the value of the company's Adjusted Net Working Capital (MKBD).
  • You can use a red plate broker. Namely brokers owned by the government.
  • Know the initial deposit amount. The amount of the initial deposit varies, ranging from 10 million rupiah – 50 million rupiah.
  • Know how much the transaction commission. For each transaction, the average commission for the purchase of shares is between 0.1 – 0.3%. Meanwhile, the commission for the sale of shares is between 0.2 – 0.4%.
  • Does the broker provide specific recommendations. In a sense, the broker serves as an advisor. This is useful when you can't do stock analysis yourself.
  • How do the stock transactions, if you want to trade on your own, you can consider a broker that provides online trading facilities. Generally stock transactions in all brokerage companies can be done at the broker's office or via telephone.
  • Has its own trading platform (software). Choose the most stable, easy and comfortable for you to use. Every online trading can usually be downloaded from the internet and ready for you to install on your PC or gadget.
  • Brokers provide real time data. You need this real time data if you want to trade short term. If you're a long-term investor, chances are you don't need this real time data.
  • Check the completeness of features, such as financial statement information, completeness of stock research indicators, technical analysis, news, and others. The more complete the features, the easier it will be for you to decide to buy and sell transactions.
  • Look for the origin of the broker (local or foreign company), and the availability of branches in each region that shows the broker is really growing and bona fide.
  • This is a guide in choosing a stockbroker, so that we don't become victims of fraud by irresponsible people who lure high profits.