Foreign equity investment is an attractive trend and field of investment in Vietnam due to the flexibility in capital use and the profit it brings in the long term. However, many people still do not know how to open a stock account? How it works… This article will help you learn how it works and the easiest way to open an international stock account.
Table of Contents:
What is a stock account?
A stock account is an investment account that you can open with an investment firm or brokerage firm.
Opening a stock account is very simple and has no commissions. Once you open your stock account, you can fund it to buy investments, such as stocks or mutual funds. The brokerage firm helps you place an investment order and usually collects a commission to do so.
A stock account gives you access to a wide range of different investments, including stocks, bonds, mutual funds, index funds, and exchange-traded funds. Many brokers also offer more sophisticated investments, such as options, forex or futures, and safer investments such as CFDs, bonds and liquidity management accounts.
After making a deposit and owning the assets in securities, you can sell your investments and withdraw the funds at any time. The broker manages your account and acts as an intermediary between you and the investments you wish to buy. You place an order and the trade is executed almost instantly.
Criteria for choosing a broker
Before opening a stock account with an online broker, consider what the broker offers compared to others. Here are some things to watch out for:
Transaction costs: Don’t rely on a single charge, such as the cost of trading securities, as brokers often have a variety of commissions. Be sure to find out all the prices when you enter the investment. While a broker may have the lowest fees per trade per share, this will help you very little if you invest primarily in mutual funds, where commissions can be unattractive.
Wide range of investment products: A good broker will offer many assets in different securities: stocks, bonds, mutual funds, exchange-traded funds (ETFs), etc. Even if you want to invest, when it comes to investing in ETFs, you need to consider expanding your investment products in the future. Therefore, you will need a broker that can provide you with all the options.
Minimum Initial Deposit Requirement: Most stockbrokers have a minimum initial investment requirement, which can be thousands of dollars. If you are a new investor with little or no investment capital, you should find out if the broker has requirements that match your qualifications. Some brokers do not have minimum standards or only ask for a few hundred dollars. eToro is a reliable online broker that only requires a minimum of $200 for the first deposit.
Third-party review of that exchange: Before you try to open a stock account at any broker, get opinions from people who have invested or are investing with that company. No matter how convincing an advertising broker is, the problems can be obvious to those who experience their services firsthand.
Quality customer service: Even professional investors sometimes need the help of a customer service center. Make sure the stockbroker you choose offers a variety of support methods and is available when you need them.
Your investment personality: Are you an active trader or a buy-and-hold investor? Whatever you do will affect your choice of broker. If you are a buy-and-hold investor and invest mainly in index funds, making only a few trades per year, the selection of funds may be more important to you than low transaction fees, obtaining shares,… such as eToro, Capital.com. On the other hand, if you are an active trader, making dozens of trades per year, transaction fees will be a significant consideration and you can opt for a CFD exchange as XM has also met your individual needs.
How to open a stock account?
How to open a stock account is a simple process: usually, you can complete the online registration steps in a few steps by filling in basic information such as email, phone number, full name …
Once you’ve opened a stock account, you’ll need to start verifying your identity and address and fund the account. Once the process is complete, you can start investing.
Nowadays, brokers often allow you to use leverage when investing and trading. However, the use of force will entail many risks when investing. Therefore, if you are learning how to open a stock account and make your first trades, you should limit the use of leverage to keep your capital safe.
Some forex brokers currently offer products in CFD securities for traders who want to try their hand at trading in this area. For example, Capital.com floor has CFD products: indices, stocks, futures contracts…
However, there are few options for investors who want to open a professional stock account to receive dividends. This article will show you how to open a stock account with a reputable broker that focuses primarily on the stock market, cryptocurrencies, and copy trading – eToro.
How to open a stock account on Capital.com?
Step 1: Visit Captilal.com by following the link below:
Step 2: Enter your registration information, including:
- Email: your email address
- Password: The password you want to set for your account Capital.com
Click the [Continue] box to proceed to the next step.
Step 3: Complete the profile, click [Complete].
Enter the information about the residential address (country), nationality (nationality) and date of birth that suits you and click [Continue].
Step 4: In the next window, enter the following personal information:
- name
- Middle name
- surname
- Date of birth
Step 5: Enter the address of residence (the same as the address in the documents used for subsequent verification – identity card / CCCD, passport, driver’s license)
Step 6: Enter your phone number (remove the leading zero).
Step 7: Select the deposit/withdrawal currency.
Step 8: Finally, carefully read the broker’s terms and conditions and press [Accept].
You have completed the opening of a Capital.com account. To trade stocks, you need to verify your account and fund it.
eToro Account Opening Instructions
Step 1: Click on the registration link:
68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Step 2: Enter the required information and click [Create Account].
68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Step 3: Complete the account verification steps, including:
- Answer questions about financial literacy: this section is not very important. You have to choose according to your knowledge or choose between the levels to qualify.
Enter address information: You should note that the address information must be in Vietnamese without accents, without semicolons, and must match the information on the address verification document you use. If your address doesn’t have a number, enter 00. - Upload a photo of your ID (2 sides) to verify your identity and upload an image of your driver’s license or invoice with your address, red stamp or a photo of your family registration (Home page and page with the name of the eToro account holder).
- Verify phone number: Enter the phone number you registered in step 2 and enter the verification code sent to your phone to complete the account verification steps.
Above are some experiences and how to open eToro and Capital.com securities accounts. Both brokers can buy shares to receive periodic dividends if you buy stocks without leverage or day trading. These are reliable brokers, which are increasingly studied and trusted by more and more investors. In particular, when you open an account with these two brokers, you both have a free virtual account to practice before investing with real money. With the above instructions on opening a stock account, hopefully you can easily open an account and be ready to participate in the international stock market.
