Getting Started: How to Open a Brokerage Account

The Big Step: Applying For Your Account

Once you've made your way through the labyrinth of brokers and found that "special one" for you, it's time to take the plunge and set up your account with them.

If your broker has a retail location nearby, you should be able to set up an account in person. Otherwise, you'll be able to fill out your brokerage application online.

In terms of the information you'll be asked to submit on your application, opening a brokerage account isn't far off from opening a checking account. Still, new national security legislation has impacted the policies many financial institutions have for opening new accounts. Brokerage firms are now held to a higher standard of verifying the identities of their clients.

Here are some of the things you'll be expected to provide when you open your account:

• Basic personal Information (name, address, employer)
• Your Social Security number
• Signature card
• W-9 form
• Two forms of identification (including one photo ID)
• Check (to make your opening deposit)

If you decide to open your account in person, it's a good idea to ask the broker what you'll need to bring before you show up at their office. Provided that you have all the required documents, your account will usually be set up the same day. However, if you open an account online, you'll probably get a follow-up telephone call, where you'll be asked to mail or fax copies of your IDs and W-9.

Start Smart

Opening a brokerage account isn't much more complicated than opening a bank account, but it can take its due share of research. By taking the time to ensure that a particular broker is right for you, you'll be doing your future portfolio a big favor.