Setting things up with a broker
Before being able to deal you will have to register with a private-client broker – this simply involves providing a few details about yourself. The broker will check your creditworthiness (e.g. banker’s reference). Anti-money-laundering requirements mean that you have to prove you are who you say you are. The whole checking process may take two weeks or so. Many brokers then set up an account so that you can deposit money into it. This will reassure the broker that you will have money to pay for a trade in a timely fashion.
There are three main types of service provided by retail brokers:
- execution-only,
- advisory,
- discretionary.
Which of these is most suitable for you depends on your circumstances.
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