A Beginner’s Guide on Opening a Trading Account

Today we wanted to put together a brief “how to” guide for new traders looking to get into the market. Like many other parts of our lives, it seems like there’s an endless amount of options for apps and websites to trade with. Now there are plenty of good options available, but we will be focusing on two of our favorites today. We will be walking you guys through how to set up your account for options trading on Robinhood and TD ameritrade. 

What will I need?

Before you open your trading account, you will need at least 3 things for both of the aforementioned sites.

  1. Your social security number
  2. Your employers name and address ( if you are self employed, then your own information) 
  3. Your bank account and routing number

Once you have these on hand you will be ready to open your account. Now it is advisable to have an idea on how much you want to initially fund your account with. However much you decide, we recommend it to be a number you won’t miss initially.

TD ameritrade

To start, we have TD ameritrade which as with every account, you will need to fill out their basic application first and choose which kind account you would like. The application is linked above and will get you started. When choosing your options account, you will have the following options provided to choose from.

  1. Covered 
  2. standard cash
  3. standard margin
  4. advanced

In our opinion, choosing the standard margin option is the best choice when opening your new account.

Now with the new account set up, it is important to download ThinkorSwim ( ToS) which is the trading app that Td ameritrade provides. It is the main reason you would open an account with them as it provides you a robust platform to both trade and create your stock analysis before making a trade. The step to take are as follows :

  1. Log in to your account
  2. Select “trade” on the ribbon menu
  3. on the right hand side under “trading platforms” select ThinkorSwim
  4. download

Now as soon as your funding clears, which will vary on what source you select, you are ready to start trading!

Robinhood

Follow the link above to get started, and receive a free stock from robinhood when you open the account. Now the initial requirements are the same for Robinhood, to get started you will need the following.

  1. Your social security number
  2. Your employers name and address ( if you are self employed, then your own information) 
  3. Your bank account and routing number

Although once you fund your account, Robinhood will allow you to trade instantly. To start trading options through robinhood there is an extra step you will have to take.

  1. Go to your account settings
  2. Scroll down to options trading
  3. Select “upgrade” to open trading
  4. Once approved, you will be able to start trading!

For those of you just starting out your trading journey, those of us at TWC are rooting for your success. We offer a variety of  options for traders looking to improve, including a “bootcamp” where we walk you through the basics and trend analysis methods we use. Everything we have here is geared to helping others become a better trader, and hope this guide helps some of you get started. 

Check us out on social media

Twitter 

Discord

youtube

Weekly newsletter