What Questions Should I Ask Before Opening a Brokerage Account?

Account structure and protections

Ask whether your account is held in your name or the broker's name (and if the latter, whether assets are segregated). Inquire about deposit insurance or protection schemes in your jurisdiction. Confirm minimum account balances, whether they're enforced, and what happens if you fall below them.

Costs and trading mechanics

Request a complete fee schedule in writing, including commissions, spreads, inactivity fees, and withdrawal charges. Ask how margin works if available—what rates apply, how much you can borrow, and what triggers a margin call. Test their execution by placing a small trade and measuring actual fills against quoted prices.

Operational questions

Confirm trading hours, platform availability during market events, and how they handle system outages. Ask what happens to open positions if their systems fail. Get the escalation path for complaints and typical resolution time. Request contact details for their compliance or ombudsman office.