Unit 4 · Level 1 · Getting started
Choosing a broker
A broker is your gateway: the licensed firm that takes your orders to the exchange and holds your investments. Comparing them comes down to three questions. Is it properly regulated (licensed and supervised by a financial authority)? How are assets held in custody (kept separate from the broker's own money, in your name)? And what does it really charge (per order, per month, per hidden anything)? No brand names needed; the checklist works everywhere.
Free to play. No ads, no token, no account needed to start.
What you get asked
What does a broker actually do for you?
A broker is plumbing, not a fortune teller: access to the market, safe custody of what you buy, and a statement trail. Judge the plumbing on cost and safety.
Why does it matter that a broker is REGULATED?
Regulation means licensing, supervision, and rules about handling client money. It doesn't prevent every failure, but unregulated platforms leave you with next to no protection.
The safekeeping of your shares, held separately from the broker's own assets, is called ___.
Proper custody means your securities stay yours even if the broker fails: they're segregated, not part of the broker's balance sheet. Investor protection details vary by country.
Match the broker-checklist item to the question it answers
Four questions and ten minutes on the broker's own website covers most of the homework.
An unregulated platform promises 'guaranteed 12% yearly returns'. Your move?
Real markets can't guarantee returns. Anyone who promises them is lying or gambling with your money. Always ask where that yield would come from. No answer, no deposit. 🐜
The rest of this unit
Brokers, orders, automation: from theory to your first standing plan.