Benefits:
- Low cost of opening an account
- Impressive leverage
- Daily maximum drawdown is controlled
- Can get commission rebates
- NO Series 56 or Series 7 required
- NO 1 year lock period
- They typically offer education
- Don’t have to list outside accounts
- Multiple platforms to choose from
Drawbacks:
- Ca ot hold overnight
The chart below does a good job of showing the differences between each account. Trading fees and costs can really add up, so it is important to make sure you have a clear understanding of what each company/brokerage charges for monthly platform fees as well as individual trading commissions. Most companies are only concerned with how much you can generate in commissions for them, thus they don’t offer educational packages and their customer support is sometimes lacking. It’s usually best to talk to experienced traders and get their opinion on which platform is right for you.
Now that you have a better understanding of the difference trading accounts out there, it’s time to choose one. Much of this depends on how well capitalized you are, how much discipline you have and of course how important controlling trading commissions is. HOWEVER, opening any of these accounts does not give you the right to go and risk lots of money when you are new!
