There are many myths you shouldn’t believe while trading. Too many people expect to make it rich right off the bat. Instead, you need to research and put a lot of time into your investments. There might even be myths preventing you from working with a brokerage.
Overall, you’ll want to learn the truth behind these myths! Once you do, you can make more informed investments. Broker platforms can help you earn more money from your savings, so you’ll want to start as soon as you can.
1. You Need To Be Rich To Open an Account
Due to misinformation, many people believe they need to have a lot of money to open a brokerage account in South Africa. However, that’s not true! You may be able to open an account with what you have already.
Not all broker platforms require you to keep your account at a minimum. Some also won’t charge you fees when your account drops below a certain amount. These details make it possible to start investing with smaller amounts of cash.
Plus, many brokers also allow you to buy fractional shares, which are much cheaper than whole shares.
2. You’ll Lose All Your Money In Fees
Additionally, people tend to believe that brokerage fees are more expensive than they are. You won’t lose all of your savings to commission fees!
Almost every brokerage will have some fees associated with it, although they can be very low. Some won’t have any, making it possible to place more trades.
However, you can lose money when you trade too quickly, making fees essential to stop this behaviour. It’s a wiser idea to hold onto your shares until the prices rise significantly.
3. All Brokers Are the Same
Some new investors don’t research broker platforms before signing up with them. However, using the wrong broker could drain your accounts of money!
You always need to make sure that you choose the best broker for you. The brokerage should be reliable, offer plenty of educational resources, and have a solid team to back up your investment choices.
When the brokerage isn’t reliable, you’re sure to lose money over time. Overall, you want to choose trustworthy brokers to work with.
4. You Should Only Open Accounts With Promotions
Additionally, it’s a common misconception that you only want to open brokerage accounts with those that offer promotions. Not every fantastic brokerage offers promotions, while some less reliable ones offer more to bring in more investors.
There are many brokers with no deposit bonus out there. Just because you won’t get a deposit bonus doesn’t mean that they won’t offer other wonderful services.
While promotions are great to have, you’ll need to ensure that they meet all of your other investment needs first. After that, you can consider the bonuses that the platform has to offer.
5. You Need To Be a Stock Genius
Lastly, you don’t need to know a lot about stocks to get started! Many people mistakenly believe that they already need to know everything about the stock market to succeed as a beginner.
While knowledge does help considerably, everyone has to start somewhere. Many broker platforms offer plenty of educational resources to help you through the learning stages.
As you’re learning, it’s a good idea to start by investing in ETFs since they make for a very diverse portfolio. As you gain more experience in the market, you can move on to other trading options. In short, everyone starts as a beginner!
Final Thoughts
To summarize, if any of these myths were holding you back, now you can open your brokerage account at your local best trading platform in South Africa with a clear mind! As you learn and invest more, you’ll make better decisions. It’s well worth learning how to save your money and make it grow.
