3 Signs You Should Switch Brokerage Accounts Before the End of the Year

by Maurie Backman | Published on Oct. 16, 2021

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If these things apply to you, you may want to dump your brokerage account sooner rather than later.

Investing regularly in a brokerage account is a smart way to grow long-term wealth. Even if you don't manage to pump money into your account all that often, the mere act of leaving your existing investments in place to gain value could work wonders in helping you grow a larger balance over time.

But if you're going to invest your money, you should have a brokerage account that works well for you. And if these factors apply to you, then it's probably time to make a change.

1. You're being charged fees that other brokerages don't impose

There are different fees you may be charged by your brokerage account. You may see a fee every time you make a trade, or you may get charged for being inactive in your account or for having too little money in there.

There are many brokerages that don't impose fees on a per-trade basis (at least not for individual stocks), and there are many brokerages that don't charge inactivity fees. Similarly, some brokerages don't impose a minimum balance requirement. If you're tired of paying fees -- which you should be -- then it pays to explore getting a new brokerage account.

2. You want to buy crypto, but your brokerage won't let you

Though not every brokerage account allows investors to trade in cryptocurrency, a growing number are making this option available. And if that's something you're interested in, then it pays to find a brokerage where you can buy and hold stocks and digital coins all in the same place.

Of course, there are risks associated with investing in crypto. The value of digital currency can swing wildly from one day to the next, and it's still unclear as to how viable cryptocurrency is as a long-term investment. But if you've done your research and are comfortable moving forward with crypto, then it does pay to find a brokerage account that allows you to buy it. Having your stocks and digital coins all in one place can make it easier to manage your assets and make sure you're maintaining a nice, diverse mix in your portfolio.

3. You're dissatisfied with the customer service

Whether you're a new investor or a seasoned one who's been buying stocks for years, there may come a point when you need support from your brokerage account, maybe due to a technical problem or another issue you encounter. If you find that it's a struggle to connect with a customer service representative, or that the service you get isn't stellar, then that alone is a good reason to move your money over to a new account.

Given the number of brokerage accounts that are out there, it makes little sense to settle for one you're largely unhappy with. If these issues apply to you, go ahead and switch brokerages -- especially if you keep getting hit with fees that are eating away at your returns. That way, you'll be able to start off the new year in a good place to invest even more.

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