MPW is not a broker nor a trading platform. Therefore the subscriber for operations must choose a broker or a platform that has suitable characteristics. Here are some essential tips to make this choice. In particular, on the commissions applied, they can nullify the positive results achieved thanks to the information in the MPW Daily Bulletin.
The platform choice
The greater propensity on the part of people towards online trading requires caution in choosing the investment platform, carefully evaluating several aspects before opening a trading account.
The first feature to check is the possession of the license, making sure through the appropriate certification that the operator is authorized to operate.
This check can be carried out quickly and easily on the official website of the supervisory institution of your country.
Another important aspect is the quality of the platform, both as regards the desktop version and the app for access from mobile devices, evaluating the usability of the site and application without neglecting the graphic interface, the functionalities for account management, tools, and graphs to monitor asset trends.
The third decisive aspect is the costs foreseen by the broker, checking the spreads, any fixed commissions, and all the fees applied on investments and the trading account.
Finally, a demo account must not be missing to test the platform for a certain period to analyze all the characteristics above in depth.
The brokerage commissions
Commissions are payable to the broker as compensation for the service provided as an intermediary. Since it is not possible to operate directly on the financial markets, the financial broker is the mandatory intermediary who buys and sells financial securities on behalf of the client. A person, to trade, must therefore register with a broker and open an account.
Fewer commissions, more earnings
The impact of trading fees on profitability is often overlooked or forgotten when deciding to open an account with a broker. Instead, the commissions, by their nature, erode the technical result up to even cancel it. It is crucial to choose the most competitive broker that has the least possible impact, thus allowing you to maximize the technical results and, therefore, the final monetizable one.
There are many brokers, all of them cover all types of services, generally. In reality, everyone has a prevailing specialization on some markets, class of securities, kind of trading, etc. This fact is often reflected in the fees it charges customers. Like any other service provider, each broker aims at a different “market” and therefore optimizes its services for its target customers.
So it is crucial to choose the broker that best suits your needs. In particular, the commissions applied to the various transactions will clarify if that broker can be good for intraday operations, such as the one needed to exploit the information received from MPW.
In the choice, it is not the size of the broker that matters, but the one that provides the service closest to the one sought, with the most competitive commissions. Obviously, in the choice of the broker concerning the commissions, a preliminary selection must be made in order to exclude those who do not ensure adequate guarantees and certifications.
The American market is the one that offers the widest choice of securities, the highest liquidity, and strict regulation, and therefore excellent security, which, especially in this field, is of primary importance.
Type of commissions
There are various types of fees to consider, which can also vary significantly from broker to broker.
In Day Trading, as the trades close on the same day of the opening, no overnight commissions are paid.
The most critical short-term fees for intraday traders are the spread and trading fees per transaction. Lower is the trader’s cost, and therefore the more significant the overall profit of the account.
Other elements to consider are whether he acts as a withholding agent or will annually provide a pre-filled tax report to be delivered to the accountant. What is the broker’s position on the American market, concerning the Pattern Day Trader, or PDT rule? This rule sets the maximum threshold of operations over 5 days at 4, for those below the $ 25,000 threshold.
On the web, there are commission comparators that help in the choice. Some are independent, and others refer to brokers. By comparing the comparators, you can identify the broker that best suits your needs. Some links:
As always, remember that the best broker is the one that ultimately best suits the desired operation with the most competitive costs. We hope to have given the critical elements for the optimal choice of the broker.
Remember that investing is another thing that follows completely different rules, belongs to a phase after earning, and has long-term prospects. The MPW course is focused on investment and, in particular, on the best strategies to enhance the savings that can be set aside.
While every effort is made to ensure the accuracy of this information, you should not rely on it as it may be complete or current. This information may be subject to change at any time.