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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2answers
296 views

When I send money to fund my account, what obliges a broker to put it in my account?

When I send money to fund my brokerage account, I send the money to a bank account which I can't know if it's personal or business. What obliges a broker (which we deal with him on the basis of trust ...
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1answer
122 views

Riskless Principal - how does it work?

I've read the Investopedia article on Riskless Principal and my understanding is that a broker/dealer gets an order from a client of buy or sell a security at say 10. Then at the same time the broker ...
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1answer
187 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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120 views

Are there any studies on the success of day traders? [closed]

If you know about any published research paper on trade accuracy or from broker perspective that what percentage of clients are profitable in day trading.
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4answers
552 views

Ready to invest but I'm overwhelmed with the number of brokers and services

I have £15,000 - £20,000 to invest for the long term and I've researched what I will regularly invest in to: Pension, Index funds, Bonds, small number of individual stocks (maybe) as well as my cash ...
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2answers
87 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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1answer
93 views

Sell Stock without a full broker account

I have a few stocks from a public company. I got them after a startup I worked in got acquired by this public company. So now I have an account on AST Financials, and my stocks are in their books (I ...
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3answers
138 views

Must I to pay a 2% commission if I invest in a mutual fund via an online broker?

If I invest in mutual funds via one of the online brokers; such as Interactive Brokers, Fidelity, Vanguard, etc.; do I need to pay a 2% commission to the exchange in which the shares are bought? If so,...
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5answers
298 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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1answer
96 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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34 views

Can a CFD broker avoid paying?

Lets say you have some shares in your portafolio that you bought and the prices increased really high, can your broker decide not to pay you the difference once you closed your position because you ...
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3answers
3k views

Is thomastradingservices legit? [duplicate]

I have invested in a company called thomastradingservices (link removed) and got profit. Now to withdraw they say I need to buy bitcoin worth 20% of the profit and send it to their wallet to receive ...
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2answers
91 views

Trade stocks for stocks without involving cash [closed]

As I'm trading stocks, most of my transactions are selling stocks that have gains and immediately investing in other stocks. I wonder why there isn't a platform that allows you to just trade stock for ...
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0answers
35 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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1answer
62 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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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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2answers
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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2answers
466 views

Are there brokers or companies who trade Forex and make money for us on our investment? And do you think fxtradeinvestment is legit? [closed]

So I was looking for some extra income and think forex is a good way to earn a little extra money. I want to know whether there are companies or brokers who trade forex for us and pay us on our ...
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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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1answer
50 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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1answer
41 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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0answers
21 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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1answer
51 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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4answers
2k views

How to incentivize a real-estate broker to find me a cheap house

I am looking for a house to buy. Most real-estate brokers that I know of represent the sellers. This means that they get a certain percentage of the selling price. This means that they have an ...
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1answer
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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1answer
435 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
56 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
88 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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2answers
139 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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6answers
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
615 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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4answers
27k views

How does Robinhood stock broker make money?

I recently downloaded the Robinhood app that states it charges $0 commission for its trades. If so how do they stay in business by doing this? Is there something they are leaving out?
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3answers
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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3answers
9k views

What happens to my stocks when broker goes bankrupt?

Let's say I have bought many stocks, ETFs and other products through Degiro. If degiro closes, do I have "access" to my financial products? How? Can I sell them aftewards through another broker?
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0answers
37 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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0answers
71 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
123 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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0answers
39 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
4k views

Understanding the concepts of market maker and broker

Wikipedia says: A market maker is a company, or an individual, that quotes both a buy and a sell price in a financial instrument or commodity held in inventory, hoping to make a profit on 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
64 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
2k 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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0answers
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
145 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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0answers
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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1answer
461 views

What are Binary Options?

What are binary options, what can they be traded on and what is the process in trading them? Also, are there any brokers in Australia who offer binary options?
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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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1answer
123 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
42 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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2answers
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 ...