Getting Started: How to Open a Brokerage Account

Additionally, many brokers offer more advanced platforms that appeal to investors who have high volumes of trades (like day traders ). While these premium platforms may offer more features, they typically come at an additional cost to you, the client. When it comes down to it, if you're not going to use the additional features (and most won't), don't bother with them.

Fees: Investor Beware

There are five major types of fees associated with having a brokerage account:

1. Trading Fees.You're pretty much guaranteed to incur these. Your broker will charge you a fee for every trade you make. This is usually under $10 per trade with an online discount broker.

2. Broker-Assisted Orders. If want to have your broker make trades for you, then you will usually need to pay for that extra face (or phone) time -- substantially more than you would for a regular self-directed trade.

3. Account Maintenance. Some brokers charge monthly maintenance fees or inactivity fees when their clients don't meet certain conditions. Become familiar with your broker's policies on this.

4. Margin. The interest on the money you borrow from your broker can be pretty hefty in some cases. Usually, low trading and maintenance fees are offset by higher margin interest rates.

5. Withdrawal or Transfer Fees. Some brokers will charge you for taking money out of your account. Make sure that you understand the limitations placed on your ability to touch your own cash.

Remember, not all of these fees will apply to you, so before you select a broker, make sure you're not paying for services that you won't find yourself using.