Investments in Shares. Selecting a Broker for Trade in the Russian Market

How to choose a broker on the stock exchange?

Most people starting to trade in the Russian market are asked this question by what criteria to select different companies, which would be more convenient to trade on the MICEX and FORTS platforms. For a person determined to enter the bizarre world of finance stocks, bonds and derivatives, choosing a broker is one of the keys to success in trading. To date, a huge number of Russian companies use modern marketing and literally drags out customers to themselves, while keeping silent about the various commissions, tariffs and penalties. In this article, I will describe the practical benefits of working with brokers. On what "frameworks" it is better to choose them, in order to reduce their commission costs, I think this is one of the most important aspects in the trade, since not only the trading strategy depends on them, but the very essence of the work on the market. Let's go straight to the point, the first thing that a person decides to trade on the Russian market is the tariffs from brokers from them and we'll start.

I. Tariffs and their types

As a rule, the broker has 4 types of tariffs, which they offer:

1.This is the amount of fixed or monthly remuneration, plus the commission of turnover per day is added to it. For clarity, it is worthwhile to give an example. Assume the company has company A on the market and it offers this tariff in the market of brokerage services. The client who decided to switch to this type of payment for services pays a fixed amount per month for example at a rate of 1000 rubles and plus to this for each day he additionally gives the broker money for the amount that the client of the company sold / bought for the day of the stock in Amount of commission equal to 0.01%. It turns out that if the investor (client) has 50 000 thousand rubles and he bought and sold the shares 2 times (here I mean that the sale (short) and the purchase (long) was made either one time, or only purchase or only sale 2 times and all this together with the closed positions), its turnover already will make 400 000 thousand rubles, its expenses will make 40 rubles + 1000 rubles a month. Probably, most people reading this article, the question arose, and what it means with closed positions, now, I'll explain this. In order to fix the profit to the customer or stop the loss, if we do not correctly predict the price movement, we need to close the position. To do this, we need to perform an operation reverse the one that the client did before, if he bought the shares (long), then he should sell them in the same amount, if he sold them, then he must buy, return them to the broker, again in Of the same number.

The author believes that this tariff is one of the most ineffective. As a rule, brokers operate on the fact that the percentage of turnover is low compared to other tariffs, so a fixed fee per month will be profitable. In fact, I think it's worth doing a mathematical calculation here.

2. Second common tariff, this is the minimum reward per turnover. The problem with this tariff is that for each assignment you will pay the minimum commission threshold set by the turnover. For example, take the same 400,000 thousand rubles for them you bought 2 shares on the Russian stock exchange, let the Company A have a minimum commission for the turnover of 50 rubles at a turnover of 0.01%. In this example, you will pay anyway 50 rubles from the purchased stock, Although your costs will be only 40. The meaning of this tariff is that the minimum amount is 50 rubles, it will always be fixed, even if your costs are less than 50 rubles. Do not forget this commission is taken with every transaction (application)!

3. One of the most profitable tariffs that brokers have in the Russian markets, regardless of the number of transactions and the minimum commission, as well as fixed remuneration per month, is a certain percentage of turnover per day. My opinion is that this tariff is the most profitable tariff with the least expenses and the most optimal option.

4. There are also different consulting rates for beginners, which is worth paying attention to. As a young bidder, you first need to find out whether this is a consultation on the movement of the market. If the general plan is consulted, then it is worth considering whether they are needed at all, as a rule, additional commissions are taken for consultations, for example, in the same increase in turnover. In principle, the answers to the main questions are given by the support service, so I advise you to read carefully and be sure to ask, this will save your costs. Once again, I remind the newcomer that only consultations on the market are important, and not on general issues!

Brokers provide services, usually even on individual tariff plans, but everything here depends on the width of your pocket.

It is important to inform those who are going to trade in the market as well about the software. Since brokers like to take commissions and pay for security, this can tell on the costs of customers who opened an account. This is the second big section I want to dedicate in this article.

II . Software

Work in the program is no less important for choice, as is the tariff. Convenience of work and just a guarantee of success, but as the saying goes - for everything you have to pay, here it is necessary to pay attention. First of all, the cost of this software per month. I think it becomes clear that someone may have less, another broker has more expensive software, while others may not have it at all. In addition, it will be important to clarify the fee or free connection to a computer or a smartphone, as well as additional various commissions, in particular, notifications of transactions, completed applications and other software products. In addition, it should be clarified whether there are free programs. I also advise you to ask about the software on the phone and what operating system is required for installation. I say this so that there are no questions when for some reason the phone does not work on the phone for trading. In principle, all information should be provided by brokers, here you just have to ask more and do not be shy, do it.

III . Marginal securities and leverage

Another fact that should be known to the client is what percentage a year the broker takes for the short and shoulder.

Earn in the Russian market, you can not only investing in stocks, but also selling them. By selling shares we sell them at a higher price, we buy them cheaper. It is most profitable to do this during the economic crisis, when the stock prices fall in value. When a trader shorts (sells) shares, he thereby takes them from the broker, naturally the broker provides the shares is not free, but at a certain annual percentage. It is important that the profit of an investor would exceed its costs for a share loan.

As a rule, beginners have a desire to increase their capital, since it is not possible to do this quickly in most cases, the broker lends money equal to the deposit, the so-called leverage, and it is also expressed as a percentage of the annual amount of the loan equal to your deposit. This is a good way to increase your capital and your profits.

Beginners coming to the market, in most cases already traded on demo accounts and adapted to some stocks, including those that are not blue chips, the so-called "illiquid", these are shares of the 2nd, 3rd and 4th, Th echelon. To avoid annoyance, the client should find out the list of securities that the broker authorizes to buy with a shoulder or what kind of shares can be sold (short), borrow them from the broker.

One of the last big paragraphs in my article will be ways to withdraw money or establish them about it, this is the fourth point that I want to tell.

IV . Withdraw and withdraw money

Here, as a rule, we are talking about commissions, the main questions that should not be forgotten are learn the broker the following:

1. The size of the commission, when withdrawing cash in cash.

2. The minimum withdrawal amount.

3. The size of the commission when withdrawing money through a card that the broker provides or is credited to it.

4. To find out whether the card is paid for in service.

5. The size of the commission, if withdrawal occurs from the cards of different banks or transfer of money to the account.

6. The maximum amount that an ATM can give in one day

I described above the main points should be aware and do not forget to learn from the brokers, because under additional costs your personal income gets . There is still one paragraph of this additional costs that can be charged to the customer:

V. Additional commissions

A) It is possible to charge additional compensation for dividends, that is, to 9% of the tax levied by the state, the company may still add its own%.

B) Learn about EDS (Digital-Digital Signature). As a rule, EDS is provided for free, but you may also have to pay a certain amount of money for this type of information security. I personally recommend that the signature of the EDS, where the trade goes with the help of a flash drive, that is, the principle of operation is the following, if a USB flash drive is not inserted into a computer, then it is impossible to perform any operation, whether it is withdrawing cash or buying or selling shares. There are some disadvantages, the flash drive will have to be carried constantly, but the security is at a higher level.

C) The date the registry is cut off. This is a certain date, when the composition of shareholders is determined, to which I will pay dividends. Since you took shares from a broker, except that he took interest from you in annual terms, he wants to get his dividends from them. Each broker has his own conditions on this account, here it is necessary to learn more about them. As a rule, the broker warns about this event.

D) Learn about the cost of servicing a deposit per month. In principle, if the account does not perform transactions, that is, the person has thrown money into the account and did nothing with them, they just lie as on a deposit, then, as a rule, the service is not taken, but who knows, all the information again Again, I need to find out from the brokerage company.

E) This commission does not apply directly to the broker, but it will be charged by the exchange, it is 0.01% of turnover, and is added in addition to the commission of the broker.

I hope that I have the opportunity to present to the ordinary reader, an approximate idea of how to choose the best broker. I suppose reading this article will be interesting not only to those who first entered the market, but also to people who already have wholesale in the Russian market. Knowing how not to go broke on commissions, market participants will be able to derive additional benefits. We need to take care of ourselves and our investments.