Choosing a Broker and Opening an Account

The broker's role for the beginner investor

Choosing a broker is one of an investor's first important decisions. It affects the safety of your transactions, the costs you will pay and the quality of your investing experience. It is worth comparing several options before signing a contract.

An important aspect is how clients' money and financial instruments are held. Market rules generally require client assets to be kept separate from the broker's own assets. Ask how this segregation is applied and what periodic statements you will receive about your balance and holdings.

What to check before you choose

• CNPF license – check on the CNPF's official website that the firm is licensed for the activities it offers you. Do not rely solely on claims made in advertising.
• BIMx membership – to buy instruments listed on the Moldova International Stock Exchange, the broker must be admitted as an exchange member. The list of members is published on bimx.md and is updated as brokers are admitted.
• Commissions and fees – the commission per trade, any minimum commission, account maintenance fees, and fees for deposits and withdrawals.
• Available markets and instruments – which markets you can trade on and what types of instruments are available to you.
• The platform and how orders are sent – online platform, mobile app, phone, or in person at the office.
• Transparency of information – the contract, the fee schedule and the risk disclosures should be clear and easy to find.
• Customer service – how easily you get answers, in what language and through which channels.

Steps to open an account

The exact procedure differs from one broker to another, but broadly speaking, opening an investment account involves the following steps:

1. IdentificationYou present a valid identity document, and the broker verifies your identity in line with know-your-customer and anti-money-laundering rules.
2. Providing personal informationYou provide contact details, information about the source of your funds and, if the broker requests them, other supporting documents.
3. Investor profile assessmentYou answer a questionnaire about your knowledge, experience, financial situation and investment objectives.
4. Signing the contractYou carefully read the contract, the fee schedule and the risk disclosure, then sign.
5. Funding the accountYou transfer money to the account indicated by the broker, usually by bank transfer from an account in your own name.
6. Platform accessYou receive your login details and can track your balance and holdings and, later, send orders.

The investor profile: why it matters

The profile questionnaire is not a mere formality. It helps the broker understand whether certain instruments or services are suitable for you, and it also helps you reflect on your own objectives and risk tolerance.