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Bank brokerage account 2022

How to open a bank account for a brokerage company

2022-01-04
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When choosing a bank to open an account, a brokerage company should consider how convenient it is to work through it on the stock market. It is necessary to find out how it interacts with the platforms you need, whether it allows you to make transactions quickly and easily, and what kind of commission it sets. Read where and how to open a bank account for a brokerage company in this article.

Features of a brokerage account in a bank

A brokerage company, having become a client of the bank, can use all of its services - debit cards, loans, etc. A separate brokerage account, which is used for trading, allows you to work at the stock exchanges (buy and sell securities). It can also be used as a current account, but it is important to monitor the balance so it does not go into deficit. As an alternative, you can open a separate account to manage your funds. Most banks offer instant transfers between their cards.

How a Broker Becomes a Client of the Bank

Registration with the bank for a brokerage company follows a similar pattern in many countries around the world. It is necessary to provide the following:

  • certificate of registration;
  • articles of association;
  • documents of owners/directors;
  • proof of financial solvency;
  • legal address, etc.

More precise information will be given by the bank to which you will apply.

Top banks for investment activities

Most banks in the world provide brokerage services. It is important to choose a reliable bank that is convenient to work with. Preference should be given to investment banks that focus on the securities market.

USA

  • Goldman Sachs is one of the largest investment banks, which has $2.5 trillion in assets under control. Many high officials of the United States cooperate with it. To open an account with Goldman Sachs for a brokerage company means not to worry about money. Its main services are financial advisory, investment and credit portfolios, and investment management.
  • Bank of America owns the Merrill Edge trading platform, which is suitable for investing in different niches of the financial industry. Opening an account with Bank of America is profitable for a brokerage firm. It doesn't charge for stock and ETF trades, boasts convenient online banking and a rewards program. It operates only in the United States.
  • JP Morgan Chase offers online trading through its JP Morgan Self-Directed Investing platform, which is not only suitable for professionals. Beginner brokers can also open an account with JP Morgan Chase for brokerage activities.
  • At Ally, it is possible to work through Ally Invest without commissions. The platform offers companies, who decided to open an account with Ally for brokerage activity, forex trading, fast transfers between Ally savings and brokerage accounts, and a set of free tools for technical investors.

Europe

  • Credit Suisse (Switzerland) is the second largest Swiss financial conglomerate in the world and is included in the list of systemically important banks. It is advantageous to open an account with Credit Suisse for brokerage companies that need privacy for large financial transactions.
  • Barclays (United Kingdom) was founded in 1690 and is one of the largest investment banks in the world. The bank has offices in Europe, USA and Asia. Barclays is listed on several stock exchanges, including the LSE and NYSE. To open an account at Barclays Credit Suisse for brokerage activities, a company must operate in the UK.
  • Deutsche Bank (Germany) is one of the 10 largest investment banks in Europe and has a powerful and influential investment banking division. Therefore, if you have decided to open an account with Deutsche Bank Suisse for brokerage activities, you do not have to worry about the safety of assets. The bank is involved in securities sales and trading, risk management, securities issuance, and international commercial banking.

How to open a bank account for brokers fast

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