4 Tips for Choosing the Right Brokerage Account in 2023

These tips could lead you to the right choice.

If 2023 is the year you're going to start investing, then you'll need to find a brokerage account to make that happen. And that's not a decision to get wrong.

You can always ask your friends, neighbors, and colleagues what brokerages they use to get a sense of some options. But as you compare your choices, it's a good idea to keep these points in mind. 

1. Look for a brokerage with minimal fees

The fees you pay as an investor are apt to eat away at your returns. So it's a good idea to keep yours to a minimum. Some brokerages still employ the practice of charging a fee for every trade you make. At this point, that's just a silly fee to pay, since so many brokerages don't charge for regular trades.

You should also know that some brokerage accounts charge fees for low balances and inactivity. These, too, are fees you should try to avoid. You should be able to invest on any budget, and you shouldn't be dinged if several months go by without you making a trade.

2. Look for a brokerage that offers fractional shares

One of the best ways to be successful as an investor is to build a diverse portfolio. And being able to buy a lot of different stocks is a good way to make that happen.

That's why it's a smart idea to find a brokerage account that allows you to buy shares of stock on a fractional basis. What this means is that if you don't want to purchase a full share of a given stock, or if you don't have the funds to do so, you can instead invest in a portion of a share of stock. 

So, let's say a given company is trading for $300 a share and you only have $150 available to trade with. If your brokerage offers fractional shares, you can buy half a share of that stock rather than wait until you have $300 to work with. And if that company ends up paying a dividend, you'll get half of the dividend you'd get with a full share. 

3. Look for a platform that's easy to use

Buying and selling assets through your brokerage account shouldn't be a frustrating or irritating experience. It's important to find a brokerage account whose platform is easy to navigate. Not only should buying and selling be a snap, but you should also be able to easily access information like the dates of previous trades or a full list of the stocks you own.

4. Look for a brokerage that teaches you how to invest

Many brokerage accounts are loaded with educational resources that are great for beginner investors. If you're a newbie, it pays to seek out a brokerage that will actually teach you a thing or two about how to evaluate a stock, and how to choose different assets based on factors like your age, goals, and risk tolerance. 

The right brokerage account could help you achieve a lot of wealth as an investor. Look for these features if you're getting started with investing in 2023.