uSMART, The Platform That Lets You Invest Smarter!

by The Unique Bunch (T.U.B) Investing, 26 April 2022. [image]
2022-04-26 00:00:00

3 Things All New Investors Must Do Before Choosing an Online Brokerage to Trade On by MoneySmart, Joanne Poh, 18 April 2022

Anyone who’s trading nowadays is doing so through an online broker. Saying you “don’t invest online but through a real, live broker” is like saying you “don’t own a smartphone” or “still make money transfers by showing up physically at bank branches” — i.e. you are either ancient or trying to make an anti-technology political statement. Using an online broker just makes a lot of sense. You can trade from the comfort of your own home, and fees are usually lower as you don’t need an actual person to be at your beck and call. You can trade whenever you want thanks to 24/7 access, and if your broker has a mobile app, you can also trade on your phone while you’re commuting. However, before you rush to sign up for the first mobile brokerage that pops up on Google — and especially if you’re a total beginner — you should take extra steps to ensure that your brokerage of choice is safe and reputable. Here’s a quick checklist of what to do before selecting an online broker and placing your first trade. 1. Check before downloading the online broker’s mobile app Not all online brokers are created equal! Before you download an online broker’s mobile app, first check to make sure it is licensed by the Monetary Authority of Singapore (MAS).MAS-licensed brokers must abide by regulatory safeguards. For instance, they must fulfil disclosure requirements whenever offering investment products, and must obey certain rules of conduct when dealing with customers. Non-licensed brokers are not compelled to follow these rules. In addition to checking for MAS licensing, you should also read reviews from reputable sources about any online broker you are considering. Make sure it is not a fake app that is too good to be true. By the way, don’t get misled by advertisements. Just because you see lots of ads about an online broker doesn’t mean that it is reliable. Targeted online advertising is very common nowadays, and you might be receiving a flood of ads for a broker because of your online activity — that doesn’t mean that they are a particularly reputable company or that other internet users are receiving the same ads. [image]
2022-05-20 14:20:30