Modern users need to know: Tips for selecting a trading agent

As investing becomes more prominent in life, the first question that arises is “Where should I start?” The simple answer is to find a suitable securities broker (broker), because this choice will profoundly impact your entire experience in the financial markets.

Who is a broker? Understand clearly

In simple terms, broker or securities agent is an individual or institution that stands between you and the financial market. They serve as a connector for your desires, whether it’s buying stocks, futures contracts, CFDs (CFD), or even foreign currencies (FOREX) with the actual market.

Imagine it simply as a middleman in a marketplace who helps you access products without having to go directly to the manufacturer. Brokers do the same, but in the financial world.

Why is choosing a broker so important?

Choosing the wrong broker can lead to disappointing outcomes, from high fees eating into your profits to platforms crashing frequently and inaccurate trading signals. Therefore, taking the time to understand how different brokers vary is a worthwhile investment.

Key criteria to check when choosing

1. Fees and commissions

This factor makes your benefits vary. Some brokers charge a percentage of the trading volume, others charge a fixed fee per transaction. For example, some brokers charge 1,500 THB per million THB traded for stocks, while others use spreads (price difference), such as $35-40 per lot for Gold.

2. Additional hidden costs

Beyond commissions, there are deposit/withdrawal fees, annual account maintenance fees, or even inactivity fees. Carefully read the details before registering.

3. Trading platform quality

A good platform should have an easy-to-use interface, comprehensive analysis tools, and importantly, high stability. It should not crash often or delay order execution.

4. Product variety

A good broker should offer stocks, bonds, mutual funds, futures, CFDs, cryptocurrencies, and currency exchanges.

5. Features matching your needs

Think about what you require. Some need automated trading orders, others want real-time economic news or constantly updated economic figures.

6. Quality customer service

When problems arise, you need to contact your broker easily via phone, email, or live chat.

Regulation: The safety net for your protection

Why are regulations so important? Because they serve four roles:

Your fund safety - Regulated brokers must adhere to minimum standards in managing funds, reducing the risk of fraud.

Transparency - They must disclose financial information and report performance honestly.

Confidence - Knowing that a broker complies with strict requirements makes you feel safer.

Prevention of illegal money use - Regulations require brokers to perform KYC (Know Your Customer) to verify client identities.

Examples of trusted regulatory agencies:

• Australian Securities and Investments Commission (ASIC)
• Financial Conduct Authority (FCA) in the UK
• Cyprus Securities and Exchange Commission (CySEC)
• Mauritius Financial Services Commission (FSC)
• Cayman Islands Monetary Authority (CIMA)

How do brokers make money?

To understand what motivates brokers, here are their main revenue streams:

Trading commissions - This is the primary income, calculated as a percentage or fixed amount per transaction.

Additional fees - Deposit/withdrawal fees, account maintenance fees, special service charges.

Interest income - Funds deposited by clients are used to generate returns, sharing some profits with the broker.

Securities lending fees - When you short sell or use securities as collateral.

Ancillary products - Selling mutual funds, ETFs, or other derivatives.

Differences between various brokers

Full-Service vs. Discount

Full-service brokers provide personalized advice and in-depth analysis but charge higher fees. Discount brokers offer limited services, suitable for investors who want to save costs and make their own decisions.

A-Book vs. B-Book

A-Book brokers route your orders to the real market, while B-Book brokers do not; they act as counterparties to your trades (acting as your counterparty).

Other differences

Some brokers provide access to multiple country stock markets, others only focus on specific markets. Analysis tools and features vary, as does direct customer service availability.

Notable global brokers

Interactive Brokers (IBKR)
One of the oldest brokers, founded in 1978, offering access to over 150 stock exchanges worldwide, with low commissions and advanced analysis tools.

Fidelity
With over 75 years of history, it is safe and reliable. No minimum trading fees for US stocks, and offers a dedicated advisory team.

Charles Schwab
Both a broker and investment bank, with no minimum commissions, high-quality research, suitable for all levels of investors.

TD Ameritrade
The Thinkorswim platform is popular among professional traders, with advanced technical analysis tools and free education.

Mitrade
A fintech company committed to regulatory standards, providing an easy trading experience through an award-winning platform.

What to remember

Finding the right broker is not a flash decision. It requires research, comparison, and understanding yourself—how often do you trade? What products do you need? How many fee issues do you encounter?

Answering these questions will help you choose a broker that can significantly enhance your investment efficiency and open doors to new opportunities in the global financial markets.