Brokers
How to read a broker's fees and protections
Custody rules, trading fees, and order execution are the three places where broker differences matter most. This guide explains each one in plain terms, without ranking providers or recommending where to open an account.
Three things to check, explained
Each point below describes how a brokerage typically works. Your own provider's terms are the final word on its features and fees.
Custody and protection
Many brokers hold client securities in custody, separate from their own assets. Check which regulator oversees the firm and whether it describes its investor-protection scheme in its disclosures.
Fees and cash sweep interest
Trading commissions are only one cost. Cash left in an account may be swept into interest-bearing deposits, and the rate paid can differ from the headline rate. Read how each rate is set and how often it changes.
Order routing and execution
Brokers send orders to trading venues, and the price you receive can vary slightly from the quote you saw. Look for disclosures on how orders are routed and how execution quality is reported.
Practice with the numbers
These calculators are for learning how the maths works. Results are illustrative only: they assume fixed inputs and do not account for taxes, fees, inflation, or changing rates. Use [verify latest figure] values from your own sources.
Compound interest calculator
Enter a starting amount, a regular contribution, an annual rate, and a number of years. The calculator shows how growth compounds over time, assuming the rate stays constant.
Loan EMI calculator
An equated monthly instalment (EMI) is a fixed monthly payment that covers interest and principal over a loan term. Enter the loan amount, annual rate, and term to see the monthly figure.
Savings goal calculator
Set a target amount and a timeline, then see roughly how much to save each month. This helps you plan a goal such as an emergency fund without promising any particular return.