The process of selecting a broker is not necessarily a simple one. Does one wish to receive advice from the broker? What sort of information does one want to receive from the broker? What sort of settlement of purchases and sales does one wish to use? How much brokerage does one wish to pay?

For traders using the Trader's Success systems it is unnecessary to have a broker advising on trades to take; similarly traders using the Trader's Success systems will not require much in the way of price data or charts from brokers. This takes care of some of the questions, but as can be seen there are others.

Traders can compare the services and prices of brokers by contacting brokers and discussing with them the trader's requirements and needs. A useful starting point is also a broker comparison website such as www.yourbroker.com.au. Brokers can also be found by asking friends and neighbours for contact details of any good brokers currently being used.

Note that there is no problem with having more than one broker. A good rule of thumb if one does require more than one brokerage account is that when one has bought shares (say in company XYZ) through a particular broker, use that broker to sell these shares (in XYZ), when the time comes to do so. It is possible to buy through one broker and sell through another, but in practice this can introduce administrative problems that are best avoided.

Setting up a brokerage account is a simple process. Once a broker has been selected and contacted, the broker will ask a new client to fill out various forms. These forms will include:

An application form to open an account with the broker; A chess sponsorship agreement; this allows the broker to register the purchase and sales of shares on your behalf in the chess system; An application form for a Cash Management Trust if this is how the broker settles trades (or a form if some other method of settlement, such as BPay, is preferred by the client); A form if the trader wishes to trade warrants; A form if a trader wishes to trade options.

Brokerage rates

The issue of the cost of brokerage is important too. As a general rule, trading using internet brokers is cheaper than trading using brokers that must be telephoned and spoken too. Some internet brokers offer the choice of trading over the net or over the phone with a real person, at higher cost. Care should be taken when comparing internet brokerage rates that there are no extra charges such as 'access fees' or whatever. These are often quite justified charges; one just needs to be aware of them before making the decision to open an account.

Brokerage rates will vary between brokers ? internet brokers heavily advertise their rates, which can vary substantially from one firm to another; while non-internet brokers generally charge a fee of around 1 to 2% of the trade size, with a minimum fee of around $50 per transaction. Traders with large transaction sizes can negotiate the fee, although every trader should feel free to negotiate; the broking industry is very competitive. One should also be aware of the old adage that "you get what you