Perhaps, you are one of those curious guys interested in the stock market. We can define the stock market as a market for securities, in particular, stocks, bonds, shares, derivatives, etc.
Deals for the purchase and sale of securities are concluded on a specially organized trading site - the stock exchange. It provides an opportunity to reliably and quickly buy securities and sell them at a market price.
The stock exchange hosts professional participants. These are intermediaries between buyers and sellers. Perhaps, you might have just guessed that these are banks, brokers, investment companies. These intermediaries provide private investors with direct access to the stock market. One of the best ways to access this market is to collaborate with EXANTE started by Anatoly Knyazev.
By the way, it’s possible to buy and sell certain types of securities outside the stock exchange. It’s over-the-counter trading. You should realize that it is not always possible to act without intermediaries on the stock market: off-exchange papers are usually not sold literally from hand to hand. The organizers of transactions in the over-the-counter market are the same brokers, banks and so on.
Secondly, over-the-counter trading is associated with great risks. In this case, operations are not controlled by anyone. It means that you are not protected from scammers and greatly risk your money. Therefore, if you want to invest money in securities, you should do it through the stock exchange. If you are interested, proceed with reading this EXANTE broker review.
How to become an investor?
An investor is somebody who invests his funds in order to make a profit. As a matter of fact, on the stock exchange, an investor purchases and sells securities. To make transactions, an investor requires opening a brokerage account. That’s a special account with the help of which you can purchase and sell securities and also monitor the entire history of operations. Additionally, your official representative on the exchange, a brokerage company, will work with such an account. If you start working with the EXANTE brokerage company, you will not be disappointed.
Who is a broker and how to work with it?
A broker can be defined as an intermediary between an investor and an issuer. It’s a professional market participant that makes securities transactions for a trader.
Most often, intermediary functions are performed by private brokerage companies as well as banks. To work on the stock market, they must have a special license issued by the financial watchdog. In this regard, everything is OK with EXANTE since it complies with the regulations of the SEC watchdog.
You conclude a service agreement with the broker and open a brokerage account. Then, the broker, on your behalf, carries out transactions on the stock market. Money for the purchase and commission of the broker are debited from the trader’s account. So, you need to pay the fee for the fact that the EXANTE broker helped you to complete the transaction on the stock exchange. In addition to transactions that the broker will make an income tax can be levied.
You can communicate with the broker online. For this purpose, you should install a special program - a trading terminal. Alternatively, you can give orders by phone. To do this, you require a special card with codes. The broker calls the cell number in the card, you erase the protective layer and call the combination of numbers printed in this cell.
When working with a broker, you need to independently work out an investment strategy. You need it because it will be up to you to make decisions about what and when to purchase and sell on the stock exchange. The broker doesn’t bear responsibility for risks and deals. It just acts on your behalf following your orders. Therefore, you will require thoroughly understanding how the securities market works and constantly monitor and analyze the market situation, and make rational decisions.
If you have little experience and you are not sure about your decisions, you can find another professional intermediary who will help you to decide which securities to buy and sell. In this case, you are expected to entrust your capital to a true professional. Nevertheless, it’s highly recommended to trade on your own. At least, try to learn how to do it.
Getting started with the EXANTE broker
It’s crucial for a novice investor to understand that trading on the stock exchange is not gambling. It’s a serious undertaking. If you are just starting out, choose the safest strategy that won't let you lose a lot of money. It’s worth becoming an investor only if you have extra funds and you have firmly decided to earn this way.