Choosing a broker

[GUIDE] · 7 MIN READ

Reading a chart is one skill. Placing the trade is another, and it happens at a broker or an exchange. The account you pick decides what you can trade, what each trade costs, and how your money is held. Here is what to check before you sign up.

1. Regulation and protection

In the US, stock brokers are registered with the SEC and are members of FINRA, and most are members of SIPC. SIPC protects customers if a member firm fails, up to $500,000 including a $250,000 limit for cash. It does not protect you from losing money on investments. Crypto is different: crypto held on an exchange is generally not covered by SIPC or FDIC. Check the broker's own disclosures, and in other countries check your local regulator's register.

2. What it costs

Commissions. Many US stock apps charge no commission on stocks and ETFs. Options and some products still carry per-contract or regulatory fees.
Spreads. The gap between buy and sell prices is a cost even when the commission is zero. Crypto apps often charge most of their fee here.
Other fees. Look for transfer-out fees, inactivity fees, currency conversion and withdrawal fees.

3. What you can trade

A stock broker may offer US stocks, ETFs and options but no crypto. A crypto exchange may list hundreds of coins but no stocks. Some apps offer both under one login, often through separate legal entities. Decide what you actually want to trade before comparing anything else.

4. The app and the charts

If you plan to read charts before you trade, the charting tools matter: indicators, drawing tools for support and resistance lines, and timeframes from minutes to months. Try the app in its demo or paper-trading mode if it has one.

5. Account types and availability

Brokers differ by country. A platform popular in the US may not accept customers in Europe, and the reverse. Check that the account type you need, such as a retirement account or a cash account, is available where you live.

Two places to start

	For	Worth knowing
Coinbase	Crypto	Publicly listed in the US. Crypto balances are not SIPC or FDIC insured.
Webull	US stocks and ETFs	Commission-free stock and ETF trades, built-in charting, paper trading.

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This guide is general information, not financial, legal or tax advice. Fees and features change, so confirm current terms on the provider's site before opening an account.