Investing your money in a brokerage account is a great way to grow your wealth, especially over the long term. But not all brokerage houses are created equal, and the account you start with doesn’t have to be the account you keep open forever. Here are some good reasons to switch brokerage accounts.
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1. It’s a struggle to make your minimum account balance
Some brokerage accounts impose a minimum balance. This minimum can be $ 500, $ 1,000 or more. If you are having trouble meeting this requirement, it may be time to create a new account for yourself. There are many brokerages that do not charge minimums at all, and these can give you more financial flexibility.
2. You are charged too many fees
Just as banks and credit card companies charge different fees, brokerage accounts also charge their fair share. But not all brokerage accounts have fees or the same fees. So if you think you are wasting too much money because of different fees, maybe it is time to make a change. Some brokerages, for example, charge an inactivity fee for not completing enough transactions. But if you’re the type who doesn’t trade often, there’s no reason to keep paying these fees when you might find an account that doesn’t charge them at all.
3. Customer service is poor
You should be able to email your brokerage account provider and get a quick response. Likewise, you should be able to pick up the phone and connect to a live person within a reasonable amount of time. If this hasn’t been your experience, then it’s time to think about making a change.
4. The platform is not user-friendly
Whether you use your brokerage account to trade frequently or not, its platform should be intuitive and easy to navigate. If you find yourself confused or deceived by different features and quirks, you might want to upgrade to a brokerage account that is easier to work with. Likewise, if you find that your account doesn’t offer an investment app or is difficult to access through your mobile device, that’s another good reason to go elsewhere.
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Make this change
One thing you should know about transferring from a brokerage account is that you will usually need to pay a fee to do so. Usually these fees range from $ 50 to $ 100, although you can pay a little more or less. But don’t let these fees stop you from making a change if your brokerage account isn’t working for you. While it’s unfortunate to have to shell out that money, you could actually get it back quite easily in the form of a lower fee on your new account.
Another thing to keep in mind is that if you don’t like your brokerage account, you might not be motivated to put more money into it. And that’s a shame, because the more you invest, the more wealth you accumulate over time. As such, you shouldn’t hesitate to research your options if you’re just not happy with the brokerage account you’ve landed on.
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