Questions tagged [broker]

An individual/entity who helps buy or sell a tradable asset. Often used with stocks, bonds, options, foreign-exchange. Related tag is brokerage, the fees charged by the broker.

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28 views

Where is my buy stop-limit order located?

Current stock price is $9 and I want to send in a buy limit order for $10.10 after price reaches $10.05? When I create and submit such order, how close to the exchange does it get before it stops ...
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56 views

If I wish to vote for a company's special meeting, should I vote via all brokers, or does voting via one broker suffice?

I own some shares in the company that will hold a "special meeting", for which shareholders have the option to cast their vote for. My shares are spread across several brokers: each of them ...
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48 views

DEGIRO: Is Debit Money better than an MMF-ETF short for leveraging?

I was looking into the options of leveraging my main index fund by a certain amount and was recommended to use Degiro's inhouse credit product "Debit Money". Current annual cost: 1.25% pa ...
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2k views

How did my 4 Tesla shares turn into 12 shares?

I bought 4 shares of Tesla on 3 separate occasions (between October 2019 and September 2020) and recently became aware that my brokerage account lists 12 shares rather than 4. So, my cost basis is $...
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4answers
2k views

Why don't brokers take money today for pending buy orders?

It was in the news recently that RobinHood had to prohibit some customer orders due to a lack of liquidity. The explanation was that because brokers like RobinHood take orders today which are ...
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Has the loan of securities from a retail investor to a well-established US broker ever resulted in a financial loss to the retail investor?

Retail investors may opt to loan some of the shares to their brokers: In theory, one of the risks is that the broker and the collateral may have some issue, leaving the retail investor with a ...
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1answer
39 views

Why are there SEC net capital requirements for brokers?

This explains that the net capital rule is for the "ability of broker-dealers to meet their financial obligations to customers and other creditors." My understanding, however, is that client ...
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1answer
46 views

How is settlement risk shared between exchange, clearing broker, and clearing house?

As I understand it a trade works as follows. A buys from B on an exchange. Instead of a direct exchange, A and B report the trade to their clearing brokers. The clearing brokers then submit the trades ...
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20 views

What are the tax consequences of loaning securities to one's broker aside from the dividends being paid as payment-in-lieu taxed as income?

I'm trying to understand the tax consequences of loaning securities to one's broker in the United States: The dividends of the loaned security are being paid as payment-in-lieu, which is taxed as ...
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43 views

If I loan securities to my broker, can this turn long-term capital gains/losses into short-term capital gains/losses?

E.g., if I purchase stock A on 2020-10-30, loan it to my broker from 2021-02-01 to 2021-11-20 and sold it on 2021-12-01 making a capital gain of X USD, will that count as long-term or short-term ...
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65 views

Do you have any idea about payback-ltd? I was scammed by the broker on MT4 [duplicate]

I was scammed by a broker on MT4. In the beginning things were going well but when I wanted to withdraw money, the broker evaded my messages and ignored my request. In the end he blocked me and I ...
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1k views

How can stockbrokers be so cheap in the U.S.?

How do stockbrokers in the U.S. manage to be so cheap? In Germany, I know a few brokers but at most of them, the cost of an order is over 5€ (approx. 6$) every time. In the states, you have brokers ...
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63 views

can I trade stocks in IEX with Interactive brokers?

I have accounts in a couple brokerages. I trade stocks just fine, however I miss any good understanding of some fundamentals, and how things work under the hood. I'm confused about stocks being traded ...
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1answer
55 views

Is there completely free options broker? [closed]

I'm looking for cheapest options broker available, and stumbled across Firstrade. They don't charge commission or fee, but unfortunately they collect SEC Fee and Options Regulatory Fee when selling or ...
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1answer
87 views

Are the shares that I own via my broker under my name?

Are shares under my name if I purchased them via my broker? What if my broker goes out of business? That should have no effect on my shares because I own those shares. They are already bought and paid ...
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8k views

Why do real estate agents always ask me whether I am buying property to live-in or as an investment?

Trying to buy a house. Along with -- what is the maximum you are willing to pay -- this is the most frequent question. Why do they care whether I will live in it or rent it out? The two are not ...
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2answers
436 views

Invest in Vanguard Index Funds (from Germany)

I am planning to invest in Vanguard Index Funds while living/working in Germany, but only interested in specific ones (see below). But I cannot seem to find them via brokers that I usually do my ...
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1k views

Is the stereotype of a businessman shouting “SELL!” and “BUY!” into a telephone in any way attached to reality?

In numerous cartoons and whatnot, you see a rich businessman shouting "BUY!" or "SELL!" into a telephone. Sometimes, it's just that, and sometimes, they may shout the slightly more ...
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35 views

Fractional shares [duplicate]

Some brokers offer fractional shares. So when i buy half share of stock (0.5) whose buy the rest half of share because in stock exchanges(e.g. nyse,nasdaq,bats) you can only exchange whole shares.
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78 views

What is the difference between payment for order flow and ECN rebates?

In both payment for order flow and ECN rebates, one gets paid for providing liquidity. What is the difference between payment for order flow and ECN rebates? Are ECN rebates a type of payment for ...
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43 views

How are remisiers in Malaysia and Singapore different from stock brokers in other countries?

In Singapore and Malaysia, some (most?) investors buy stocks through a "remisier". Remisiers are apparently special enough to get their own Wikipedia page: A remisier (also known as a ...
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1answer
121 views

I placed trade with Broker and it was not executed even though price fell 55 cent below what I asked

I placed a trade for stock XYZ with broker 123 from bank ABC (which is part of SIPC) This was BUY trade for $100. Stock for XYZ went down to $99.45 and closed at $99.80. Trade was never executed. I ...
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5answers
251 views

How are retail forex brokers different from betting shops?

I'm struggling to find differences between bookmakers and retail forex brokers (e.g. OANDA). The former deals with horse racing, greyhound racing and sports, while the latter deals with currency ...
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34 views

What is a “Broker Broker's Trade” in the municipal bond market?

I was looking at the historical trades of a municipal bond using the Municipal Securities Rulemaking Board (MSRB) Electronic Municipal Market Access (EMMA) website: Notice that the first row in the ...
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2answers
2k views

Is this company claiming to be a broker a Scam?

I am very new to trading, so please take it easy with me. Recently I was searching online and doing independent research and met a new friend who recommended https://fortistrad.com/en/ for me. I ...
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1answer
1k views

Does PDT transfer with you when you switch brokerages?

Robinhood classified me as a Pattern Day Trader (PDT). If I switch to TD Ameritrade, will my 90 day ban follow me? Worried that if I make a trade with TD Ameritrade then I try to sell it will ...
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29 views

Brokers and Negative Balance Protection

I'm a bit confused about the Negative Balance Protection offered by many brokers, specially when they allow leverage, and a lot of leverage (common in brokers with CFDs). How are they protecting ...
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1answer
61 views

What is a free or cheap Broker with Trading Software [closed]

I am fairly new to trading. Recently I watched some videos after joining Robinhood and I realized that Robinhood is fairly limited. I am looking for a broker company and software that allows me to do ...
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1answer
136 views

Broker Reversed a Sell That Filled

I had a market sell order that went through last Friday morning, 06/05/2020 at 11 am. It has an Order Id, Security ID, and CUSIP ID. Today the broker removed it from my account and took the money ...
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49 views

Stocks broker compensation upon error

I have a stock plan from my employer, which includes RSU vesting on certain dates through E-trade's services. Currently, E-trade has technical issues, which are preventing me (and some other employees ...
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6answers
6k views

What does Benjamin Graham mean by “Those who speculate make money for their brokers”?

In The Intelligent Investor, page 36, Zwieg, who is writing the commentary, states "those who invest make money for themselves. Those who speculate make money for their brokers." Why is it the case ...
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1answer
120 views

How safe are those online brokers and what to look for?

I am relatively new to the investment world. I know enough about economics & finance and I have bought & sold government bonds through my bank before. I am moving to a new country (Germany) ...
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1answer
37 views

Trying to understand what trading costs actually are in funds and ETFs

I'm trying to understand what the trading costs are in ETFs and funds. Is the explanation below correct? ETFs have trading costs because they trade almost like stocks, so you need to go through a ...
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1answer
64 views

Calculating the price of oil

So I've seen a lot of questions about the oil crisis, but what I still didn't figure out is how the broker (providing you the ability to buy commodities) calculates their prices in respect to ...
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2k views

Maximize trading commission bonus

As a new client of a broker I'm given $300 of free commission on trading (basically on everything: stocks, options, futures etc). Is there a way to capitalize this bonus by creating some combination ...
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1answer
121 views

How to show currency of stock in Interactive Brokers

I am using Client Portal in Interactive Brokers. I can see the price for an instrument (stock or etf). Where can I see the currency and prospectus/documents for the instruments?
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1answer
99 views

Should I worry that an online broker I buy securities from might not be in business when I want to sell them?

I would like to buy ETFs via an online broker in Denmark that is not affiliated with the bank that manages my regular deposit. Is there a possibility that this broker might not be in in business ...
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2answers
83 views

Closing out an in-the-money equity option spreadtrade

I put on a debit weekly diagonal ITM put spread trade on stock A selling at $45 : I Buy back week put strike 55 sell front week put strike 50. I am assigned overnight and have to purchase 100 shares ...
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161 views

Will my father know I changed brokers?

My father started a small nest egg for me when I was a teenager. He was hoping it would grow to help out with a down payment on a home when I was older. However as I'm now in my 20s I've noticed that ...
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1answer
3k views

Degiro: “please select your profile”, “your securities can be lent”. Which option to choose?

When I am creating an account in Degiro (in Germany) I am exposed to these profile options (beware: the translation has been done by Google translator from German the original): Of course I am ...
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1answer
78 views

Are wash sales calculated by my broker?

For taxes, do I need to calculate wash sales myself, or are they typically reflected on the tax documents I will be sent by my broker?
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1answer
47 views

How does a margin account work?

If you open a margin account, does this mean that you are putting your OWN money in the margin account which is supervised by a broker and to whom you pay interest to?
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1answer
1k views

“Mandatory Reorg Fee” tax deductible?

I was charged a $38 "Mandatory Reorganization Fee" by ETrade when a stock had a reverse split. Is this tax deductible? If not, do I add it to my tax basis?
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1answer
66 views

Why Can't Some Commercial Bonds Be Bought Through Major Brokers?

I am interested in buying a commercial bond issued by a coal mining company. The CUSIP is 62704PAM5. I searched online at tdameritrade.com and was not able to find the bond using their bond search ...
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64 views

How vulnerable are my investments to broker bankruptcy? Portability of investments and transfer costs? [duplicate]

Let's assume I use a broker like Ameritrade or Schwab etc. to buy Mutual funds, ETFs, stocks etc. Now, let's assume that some point down the line the broker company goes bankrupt or shuts down due to ...
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1answer
51 views

Obtaining company data from brokers

I'm someone who has never purchased stocks/shares, and only has a fuzzy idea of how brokers work. But I'm looking to invest money in stocks/shares. So this is a question about what about a brokerage ...
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1answer
60 views

Trusting Sell-Side Analysts and their ratings

I was wondering what percent of stocks are rated as a buy by the sell-side analysts and if they really mean anything. I feel like there sometimes can be a conflict of interest if the company does work ...
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2answers
698 views

How does exchange match multi-leg option orders?

Suppose I submit an order to open an iron condor or some other multi-leg stock option spread with multiple buys and sells. For example, if SPY is trading at 275, I might want to: sell a call at 290 ...
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2answers
364 views

Are large brokers audited to ensure client funds are ring-fenced?

In the UK we have a Financial Services Compensation Scheme (FSCS) that covers investors for up to £85,000 if their broker goes bankrupt. We also have a law stating that brokers must ring fence their ...
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1answer
523 views

When is margin interest charged?

Let's say that I have a margin account at a major broker like TD Ameritrade or Interactive Brokers. I am trying to calculate what my cost would be to use margin and I would also like to know when it ...