Questions tagged [brokerage]

For questions about brokerage firms, opening a brokerage account, etc. Questions asking for specific service recommendations are off-topic.

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What happens when a Singaporean stock brokerage firm goes bankrupt?

In Singapore, what would happen if a stock brokerage firm collapses? What happens to the customers' shares and cash? Are brokerage accounts insured in the same way that bank accounts are insured by ...
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Do stockbrokers have to send all orders to SGX?

Suppose I have an account at a stock brokerage firm in Singapore. If place an order to buy or sell one lot of shares, will my order be sent to the stock exchange (SGX) and get executed there? Is it ...
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What to do with small brokerage deposits?

I setup my brokerage account a while ago, and haven't really been adding additional deposits into it aside from a hiring bonus I got a few years ago. Currently I'm sitting at around $20K invested, ...
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Best practices for protecting retirement savings?

Let's say my nest egg is in ETFs in a taxable account and an IRA with the same brokerage. SIPC insurance may cover me "if the firm fails financially", and only up to $500,000. That is per ...
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Finding brokers to invest in US index funds that support iraq

I live in iraq and i would like to invest in US index funds.looking at the popular brokers like robinhood and vanguard they state that they don't support investing from my country.Googling for iraqi ...
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Family Member Broker - Managing Mother's Investment

My niece works for a securities firm as registered broker, (not CFP) - her mother, my sister, inherited a large sum of money and will be investing 100% of her funds with her daughters business. Is ...
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How are stock brokers' order routing reports useful to the retail investor?

The SEC requires stock brokers to regularly publish an "order routing report" †. I see that Robinhood has published its report for Q2 2021: RHS SEC Rule 606 and 607 Disclosure. What are ...
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Business model behind "free" broker accounts for people interested in long-term investing [duplicate]

In the last years a lot of online broker firms have appeared that let you buy various financial products (shares of a stock, ETFs, CFDs etc.) for free: No fee is charged and no monthly subscription is ...
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How can brokers profit from spread? [duplicate]

How can brokers profit from spread? Isn’t market makers that profit from spread? And also how do brokers profit from OTC gain? How does that exactly work?
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What are the pros and cons of participating in a "Fully Paid Lending Income" program in IRA?

I am interested in lending my passive holdings for generating more income. Hopefully the risk is minimal. I see, for instance, two brokerages offering it. I am not asking any recommendation on ...
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How Do I Trade With Margin On E*Trade?

I'm new to Margin altogether and need some help. Here are my numbers: Total Margin Requirements $0.00 Total Margin Equity $190.68 Adjusted SMA $205.34 Maintenance Excess ...
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Is it possible to invest on stocks/cryptos with having no Social Security Number in US?

I am on F-2(student dependent) visa in the US. I want to know if it is possible to have a brokerage account and invest online on stocks or cryptos? I do not have SSN nor ITIN and some brokerage like ...
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Understanding Account Balances On E*TRADE

I am brand new to E*TRADE and so far I love it, but the setup is a little different to what I'm used to. Could someone explain what the different balances mean? Here's what I'm seeing: Net Account ...
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Time for an ACH Transfer

Imagine an investor who has two accounts at the same broker. One is a living trust account and the other is an individual brokerage account. Now the investor wants to move money from one account to ...
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Violating bank policy by not disclosing brokerage account and short selling

I live in U.S and work as a software developer (back office) at an investment bank. I don't have those series 63 license that needed to be registered with Finra, and my work is nothing at all ...
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Wrong citizenship on my ETORO account

ETORO took my country of tax residency as my country of citizenship and this is not True. What should I do? Their customer support seems useless. Can I continue with it?
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Can one of my citizenships cause problems with investing?

As a citizen and resident of Mexico, American and European brokers are happy to take my business. But I'm also a citizen of Syria, which is sanctioned. While filling out account creation forms, I don'...
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Does shorting stock cause your account value to go up?

Does shorting stock cause your account value number to go up? Specifically for IB but most broker have a number that shows the total value of your account Stocks + cash + any other investment.
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Does it matter on which exchange and which currency I buy ETF?

I am citizen of EU member state and using Interactive Brokers. I am in for a long time and let's say I am averse to euro, so I focus on US equity ETFs. As EU citizen, I have to buy their UCITS ...
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Will US brokers accept me? I'm a citizen of Iran but a resident of Georgia

Any citizens of Iran here who can share their experience?
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5 answers
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Why does an online stock broker need to know information about my current salary?

I'm in the process of opening an account with TD Ameritrade, and they've asked for proof of employment that includes my current salary. Why would they need to know my current salary? Especially since ...
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How to account for a stock spinoff in an investment account

I recently obtained shares of Sylvamo Corp (SLVM) as a result of a spinoff from International Paper (IP). In the transaction history of the containing brokerage account there was no intermediate ...
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Enrolling in securities lending program vs. converting position to a synthetic long stock

Some stock brokerages provide opportunities for their clients to earn some money by allowing the brokerage to lend out the client's shares to short sellers. Common names for these programs are: "...
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3 votes
1 answer
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Status of US brokerage account of non-domiciled citizen

I have a brokerage account with Ameritrade (now owned by Schwab) that I’ve held for almost 25 years with almost all my savings there. Recently I left the US and have decided to settle in Spain. Can I ...
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Is there any evidence that zero commission stock brokers are cheaper than those that charge commissions?

Trading costs can be divided into explicit costs and implicit costs. The explicit cost is the commission charged by the stock broker. The implicit costs are the price impact of the trade, and the ...
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What's the incentive for a broker to allow short selling?

I was researching how short selling worked and I was wondering what are the advantages for the broker to allow this. Why would the broker lend out stocks with the expectation that they will get it ...
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Is Margin Interest Rate of a Brokerage Relevant?

I've seen brokerages intensely advertise their margin interest rate, and I've seen this being use to compare them. Why is this important, when you can get a low interest rate loan using in the ...
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Are Transaction/Order/Trade ID/Numbers attached to the trade of a security sensitive information?

Some brokerages display some Transaction/Order/Trade ID/Numbers that identifies or qualified a trade of a security (e.g., the purchase of some stock): is that sensitive information? Example on TD ...
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What's the average time for order confirmation and fulfillment for brokers in intraday trading?

I've been flirting with the idea of automated, algorithmic trading applications and have been running simulations for several trading strategies with historical, intraday stock prices. There's one ...
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1 vote
2 answers
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What to look for when opening a brokerage account for a beginner?

I am John and I am 18 years old. I am looking to open a brokerage account in Australia. My question is what characteristics should I look for when opening a brokerage account as a beginner?
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How many accounts do I need to trade Stocks. Future contracts, Cryptocurrencies, Forex, Etc.?

I am a new comer in the US and I want to start my investment here. But the first question is how many brokerage accounts do I need if I want to do and manage the investment on all of the markets? In ...
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2 votes
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Who sets the stock loan costs in U.S. markets?

The market "fee rate" (a.k.a. borrow cost ) for borrowing stock shares to sell short can run very high. (One source for the current borrow cost is a list published every 15 minutes by ...
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Is zero commission stock trading dependent on payment for order flow?

All zero commission stock brokerage firms I have looked at are able to offer zero commissions because of payment for order flow (PFOF). Is PFOF a necessary component of zero commission stock trading, ...
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Will U.S brokers accept a utility bill as a proof of residency if it is not registered in my name?

Will U.S brokers accept a utility bill as a proof of residency-address (when opening account) if it is not registered in my name?
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Why does my stockbroker allow trading at the close but not at the open?

I have an stock brokerage account at TD Ameritrade, and I noticed that it allows market-on-close (MOC) and limit-on-close (LOC) orders, but not market-on-open (MOO) and limit-on-open (LOO) orders. Is ...
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brokerage bank accounts

Can you have two bank accounts from two different countries with the same brokers company. ie buy sterling using a british account and cash it out in America with an american account with a view to ...
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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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10 votes
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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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Can a brokerage hold BUY order from customer until brokerage has needed stock to fill the order "in-house"? [duplicate]

According to SEC.gov: Internalization When you place an order to buy or sell a stock, your broker has choices on where to execute your order. Instead of routing your order to a market or market-...
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Will Lloyd's of London really insure brokerage accounts up to $49.5 million?

Some personal investment brokers like Vanguard are "backed" by Lloyds of London: Assuming a fraudulent loss in a individual brokerage account: Will they really replace the entire investment ...
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23 votes
4 answers
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Why would collateral be required to make a stock purchase?

I've been reading this page on the recent GameStop short squeeeze. It mentions that at one point Robinhood and other brokers prevented their clients from purchasing shares of GameStop (GME): On ...
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If a broker in the US does not provide Form 1099 by its due date (January 31), what penalty do they face, and can the client be compensated?

https://www.investopedia.com/terms/f/form1099div.asp (mirror) says: Banks, investment companies, and other financial institutions are required to provide taxpayers with a 1099-DIV by Jan. 31 each ...
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1 vote
2 answers
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Is there an exact percentage drop for a stock for it to trigger a margin call?

I think in US stock market, it is common to be able to borrow 100% and buy the stock, and the margin requirement is 30%. (some firms call it "Margin Maintenance Requirement" or "MMR&...
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How does one transfer money quickly to a broker like Ameritrade over the weekend? (If money is no object) Would a wire transfer work?

I'm trying to transfer funds to my Ameritrade account before extended hours tomorrow.
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What would happen to account holders if a brokerage gets shut down? [duplicate]

As many of you may know, this morning Robinhood (among other brokerages) shut down trading of several stocks, including Gamestop (GME) and AMC Entertainment (AMC). Recently, Justin Kan on Twitter ...
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Why would a financial institution prevent their clients from trading a specific security?

Ameritrade restricts trading of Gamestop: "In the interest of mitigating risk for our company and clients, we have put in place several restrictions on some transactions in $GME [GameStop], $AMC ...
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1 vote
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Why ACH is still slow even after 3 phases by nacha

per nacha , USA banks are suppose to be processing ACH fast, but I have not seen any improvement in ACH with either brokerage or bank accounts since year 2003. What is the reason for no visible change ...
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Excess income after fully funding all retirement accounts. Now what?

Long-time lurker, first time asker... I have a positive problem. We are a family of four with two small kids with one working parent (me). We have very little debt: our only debt is our mortgage, ...
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What's more important, broad diversification or Dollar Cost Averaging?

The fee structure of my online broker would make a broadly diversified portfolio consisting of up to 8 ETFs very expensive in transaction fees if I decided to make monthly purchases for the purpose of ...
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1 vote
1 answer
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Vanilla options on major US equity indexes – what is the best way to buy them via individual brokerage account?

Please help me with two questions: What is the best way to buy plain vanilla options on US large, mid, and small cap indexes, such as Russell. I’m looking for some actively tradeable options with ...
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