Whenever you are outlaying any form of capital, you want to ensure that the person or institution you are paying will be around, well and truly after the transaction has been completed, and for many years to come.
This can provide you with the comfort you desire.
The last thing a person wants to feel is insecure, especially when handing large quantities of hard-earned money to invest in a product or company.
So, what features should you look in a broker for when wanting to acquire stocks in a publicly company such as those on the stock market, no matter their location around the world?
Firstly, you want to check that your broker has a strong capital position, meaning it can handle the transaction and the order execution. You wouldn’t want to place your money into a broker account that can’t guarantee your funds will be safe, or that the order will be completed as per your wish.
Holding over $10billion in capital gives Interactive Brokers a distinct advantage, as they are one of the biggest handlers of equity and capital worldwide. And also having $7.1b in excess regulatory capital means you can rest assured the company won’t be going anywhere, any time soon.
Seeing if the broker is also listed on the stock market exchange can provide extra confidence, as many regulatory hurdles have had to be jumped through, just to list. In the case of Interactive Brokers (NYSE:IBKR), the company is listed on the Nasdaq.
If a company listed on a stock exchange, and operating around the world, it also means that anywhere there is an outlet, they have to be regulated and comply with that jurisdiction’s terms and conditions.
Knowing there are 1.7million clients all over the world who use the Interactive Brokers service also instills confidence, that the financial management company will be around, not only after your stock order is executed, but also after it is sold (hopefully a long time down the track).
Performing around 2.5m daily average revenue trades (or DARTs) also gives assurances that you are not the only person to rely on Interactive Brokers for their services.
The ASX is set for a solid opening today, bolstered by overnight gains in the banking, commodities, and energy sectors.
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Market analyst David Scutt from StoneX joins to discuss the latest market movements. #featured #trending
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