Determining the Right Broker-Dealer for Professional Traders

By: Montana Timpson

With the 2020 tax period fast approaching, now is the opportune time to determine if it’s time for a change in your broker-dealer. Transitioning brokerages or opening a new account might seem like a daunting task, but avoiding a broker-dealer switch that can offer you clear advantages can hinder your ability to reach your full potential in 2021.

While there’s no definite way to guarantee investment returns, there is a way to set yourself up for success by selecting a brokerage that best suits your needs. Consider determining factors like your investment strategy, experience level, fiscal limitations and platform preferences when determining the right broker-dealer for you.

Investment Type
For professional traders, the primary consideration in choosing an investment account is often your investment strategy. What kind of securities are you targeting, and what types of trades are you looking to execute? For more advanced strategies, professional traders often require broker-dealers that offer platforms supporting customizable order entry, complex order options and various routing choices.

Once you know your strategy, you can search for broker-dealers that offer access to trade opportunities and resources to best help you succeed.

Educational Resources, Partnered Research and Market Analysis
For traders seeking guided knowledge, broker-dealer necessities might include educational resources, one-on-one support options and soft demo opportunities to allow risk-free trials of trading software. For professional traders, emphasis might lie in access to fundamental and technical data, partnered research, analyst recommendations and social sentiment analytics.

Partnered research can include anything from market data integrations to financial analyst rankings and advice, all of which, if offered by a brokerage, can give active traders a significant edge in market data insights. If offered by a brokerage, external trading tools — platforms like eSignal, Social Market Analytics and TipRanks, in the case of Lightspeed — can give traders indications of future market and economic performance along with, in some cases, positive or negative ratings of stocks and potential trading and investment strategies to help maximize potential success.

Fiscal Considerations
As well as available tools and resources, professional traders should assess the fiscal requirements of varying brokerage firms. Many brokers have minimum deposit thresholds, while others may require a minimum balance to access certain advanced features or trading platforms. Make sure to consider annual fees, margin rates and price of access to various platforms when comparing broker-dealers, and look to take advantage of new account promotions, when available.

For additional professional trading tips, guides and resources, visit Lightspeed’s Active Trading Blog and register now for our next live webinar.

Active Trading with Lightspeed
Lightspeed provides professional traders with all the tools required to help them find success in stock trading, and we have been developing and honing our active trader platform to offer an optimal user experience. With the intuitive interface layouts and institutional quality stock and options scanners, we aim to help traders reach their goals, no matter what their strategy is. We also offer our clients some of the lowest trading fees in the industry.

For more information on a professional trading platform with Lightspeed, please call us at 1-888-577-3123, request a demo, or open an account.

Data, information, and material (“content”) are provided for informational and educational purposes only. This content neither is, nor should be construed as an offer, solicitation, or recommendation to buy or sell any securities or contracts. Any investment decisions made by the user through the use of such content are solely based on the users’ independent analyses taking into consideration your financial circumstances, investment objectives, and risk tolerance.

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