Nivacrm · Free educational resource

Before opening a brokerage account

Use these questions to research a provider and compare account terms. Open your browser’s Print menu to save a PDF or print a copy.

Provider / exact legal entity: __________________________________
Country of residence: __________________ Date checked: __________________

1. Establish who you are dealing with

• What is the exact legal entity that would hold your account? Does it match the account agreement and the official register?
• Which regulator oversees that entity, and do its permissions cover the service you intend to use?
• Do the website address, phone number, and contact details match the official record? Verify these independently before sending money.
• Where can you find the firm’s disciplinary history, complaints process, and conflict-of-interest disclosures?

A registration entry is a starting point for checks, not a guarantee of returns or protection against every loss. Do not treat a logo or a claimed licence number as proof.

2. Check eligibility and account terms

• Can the entity accept residents of your country? Which age, identity, residency, and tax-document requirements apply?
• Is the account a cash account or a margin account? What borrowing, collateral, and liquidation conditions apply if margin is enabled?
• Is there a minimum deposit or continuing minimum balance? Are there restrictions on the currencies and funding methods you can use?
• Which legal jurisdiction and dispute-resolution process apply to the agreement?

3. Compare the full cost

• What would you pay for the trades you expect to make, including commissions, spreads, exchange charges, and product fees?
• What are the currency-conversion rate, markup, and minimum conversion charge?
• Are there custody, platform, data, subscription, inactivity, or account-closing fees?
• What are the deposit, withdrawal, and transfer-out charges, including charges from banks or other intermediaries?
• If you borrow, how is interest calculated and when can the rate change? Ask for a worked cost example for your expected activity.

Estimated annual account costs and assumptions:

4. Understand products and trading

• Which products and markets are available through this particular account? Are you buying the underlying asset or a derivative?
• What risks and restrictions apply to options, leveraged products, short selling, or other complex instruments? Do you understand them before enabling access?
• What order types, execution arrangements, market-hours rules, and settlement periods apply?
• How do fractional holdings, securities lending, and voting rights work? Can you decline optional lending programmes?

5. Ask about custody and protection

• Who holds cash and securities, and how are client assets recorded and separated?
• Is any compensation or deposit-protection scheme relevant to this entity and account? Check its eligibility, exclusions, and limits with the official scheme.
• What happens if the provider or its custodian fails? What records would you need to make a claim?
• What security controls are available, such as multi-factor authentication and withdrawal alerts?

Protection schemes have specific conditions. Do not assume they cover market losses, every product, or every customer.

6. Plan withdrawals and support

• How long do withdrawals normally take after settlement, and what holds or identity checks can delay them?
• Can you transfer investments to another provider, or would you have to sell them? What costs or tax consequences should you investigate?
• How do you reach support, in which languages and hours, and how do you escalate an unresolved complaint?
• What statements and tax reports will you receive? Check your own reporting responsibilities with the relevant tax authority or a qualified adviser.

7. Record what remains unclear

Questions to resolve before deciding:

Documents to read: account agreement, current fee schedule, product risk disclosures, custody terms, and complaint procedures. Keep copies and the date you checked them.

Official starting points