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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votes
12answers
8k views

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, ...
1
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1answer
86 views

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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1answer
32 views

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 ...
11
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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 ...
0
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1answer
77 views

Sold Three Stocks, Why is Market Value Double the Price of Total Netted Value

Brokerage is within US bank, I am in USA. Few days ago I sold some stocks. Total netted value is $300. Settlement will happen in few days. Right now the Brokerage says Portfolio value is $300, but the ...
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1answer
82 views

Brokerage in US Bank Won't Print TOD name on Monthly Statement

I am in USA and have Brokerage account with Bank. When I opened account, I said who it should Transfer On Death (TOD). When I get monthly statement, it said "TOD ", but it does not print ...
14
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5answers
4k views

Is it possible to violate SEC rules within a retail brokerage account?

I am a small buy-and-hold investor. I recently asked a question about pump and dump scams: Will I be investigated if I regularly profit from pump and dump scams? One interesting comment by user @Steve-...
1
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1answer
43 views

Trust being a beneficiary of a brokerage account [closed]

Are there any problems / issues with making the beneficiary of a brokerage account a trust? Does it matter if the trust is defective? A trust is considered defective if it counts as a trust for estate ...
2
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2answers
129 views

Trying to understand what happens with a brokerage firm's customers when it goes bankrupt (case of study: Lehman Brothers)

I'm trying to understand how secure it is to own mutual funds/ETFs, not in terms of market volatility etc., but in terms of judicial security (i.e. what happens to your holdings if the firm goes ...
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2answers
150 views

How much is the vigorish in the stock market?

When I do sports betting and the moneyline is -110, 110, I must win at least ~52.4% of the time to break even. The 2.4% goes to the bookmaker as their vigorish (or "rake", or "juice&...
1
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1answer
48 views

Do futures regulations stipulate a minimum account balance?

I opened a futures trading account at a futures brokerage that requires a $100 minimum deposit. Are these minimum deposits specified by any regulator, or is it up to each broker to set a minimum ...
2
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1answer
86 views

How do I protect myself against a futures broker's collapse?

I noticed that SIPC does not cover futures. Accounts at futures brokers are not protected by SIPC. If I am worried about the possibility of a futures broker's collapse, what should I do? Do I need to ...
0
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1answer
24 views

How to find world market index symbols in different brokers (i.e. TOS, RH)

I use Thinkorswim to check on the E-Mini S&P 500 futures, 'ES20', but I also want to see the FTSE 100, CAC 40, AEX, Hang Seng, etc. But when I enter those names to the search field I get no ...
1
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2answers
181 views

Brokerage wants my bank login info for verification

I recently created a Brokerage account at ETRADE(https://us.etrade.com/). I transferred some money over from my bank, now they want me to login using my bank info on their website to verify my bank ...
0
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3answers
132 views

How do taxes get paid when I have my money at a brokerage?

The answer is probably pretty universal, but I'm in the United States. If I have a broker investing money on my behalf or if I invest my money myself in stocks or mutual funds (what's the general term ...
4
votes
1answer
135 views

How does voting work when shares are lent out to short sellers?

Suppose A has 1000 shares of a stock in a margin account, while B has 500 shares. The stock brokerage firms holds all these shares in street name and can lend these shares to short sellers at any time....
4
votes
1answer
478 views

Why does Charles Schwab require a large minimum deposit to open an international brokerage account? [closed]

Charles Schwab is demanding US $25,000 for opening an international individual broker account which is I guess free for the US citizens. Why does Charles Schwab charge such a huge amount for ...
2
votes
3answers
140 views

Pros and cons of discount brokerages vs established brokerages

What are the pros and cons of a discount brokerage (such as Wealthsimple, Robinhood, etc.) compared to a more established brokerage (such as TD WebBroker, etc.)? Why do companies such as Wealthsimple ...
7
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2answers
874 views

Mechanics of forward stock split

Apple (AAPL) recently announced that they'll undergo a 4:1 stock split. Here are the relevant dates per a CNBC article: The shares will be distributed to shareholders at the close of business on ...
2
votes
1answer
127 views

How can I verify that a futures broker is legitimate?

To verify that a stock brokerage firm is legitimate and not a scam, I can use FINRA's BrokerCheck. Some stock brokers helpfully provide a link to BrokerCheck in the fine print at the bottom of web ...
1
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1answer
58 views

Why is Trailing take profit a non existent functionality from brokers

If i understand this correct a trailing stop loss line can be put between the current market price and what you bought it for and your taking an L on the trade ...etc... but why is the opposite ...
1
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1answer
44 views

How does a Canadian sell TFSA assets in a foreign stock exchange?

I'm using TD Waterhouse and bought some stock in my TFSA account. However, the entity was purchased by a UK company. TD Waterhouse doesn't seem to be able to sell stock on the London Stock Exchange ...
1
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1answer
63 views

Are publicly available bid, ask, and last prices reliable when many trades take place outside stock exchanges?

From my understanding, zero-commission trades are possible because stock brokers place orders for stocks on third-party platforms instead of placing orders on stock exchanges. The third-party ...
2
votes
1answer
250 views

Are there advantages in buying round lots rather than odd lots?

Sometimes, when I want to buy a stock, I will spread the buying over several weeks in order to "cost average" the purchase price. This may involve buying in odd lots (i.e. the number of ...
2
votes
1answer
163 views

What are the situations that could cause unlimited liability in my stock brokerage account?

I have a stock brokerage account, and I want to make sure that the things I do in it will not cause me to be liable for more than the amount I put into the brokerage account. My question is: under ...
0
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0answers
23 views

Foreigner trading stocks through US brokerage bank [duplicate]

I am a foreigner currently living in the US, and I have a SSN due to my employment here. However, I will be returning to my home country next year. My question is: since I have an SSN, I am able to ...
1
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1answer
68 views

Calculate liquid net worth

I look at the definition and I understand the idea and concept of liquidity: It's how much cash you can pay and cover more or less immediately. I have x dollars in stocks and savings which can be ...
4
votes
2answers
332 views

Can my stock broker delay my buy order while it buys using its own account?

Suppose I have placed an order to buy 100 shares at $10. Can my stock broker leave my order aside while it buys 100 shares at $10.01 using its own money? The stock broker gains from this: If the ...
2
votes
0answers
76 views

What are New York Window fees?

Someone told me that if the stock I want to buy/sell does not trade 100% electronically, my stock broker may need to handle physical share certificates. I was told that I could be charged a "New ...
1
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2answers
67 views

What is a “forced buy-in” for illiquid OTC stocks?

I was reading about the illiquid fee policies of a stock broker: https://www.firstrade.com/content/en-us/customerservice/faqs/illiquidfees/. Excerpt: Forced Buy-Ins: Your sale of a low-priced ...
0
votes
2answers
141 views

Do I earn interest when shorting stocks?

Suppose I short 100 shares of a $5 stock. My cash balance will be +$500 due to the short position. Does this $500 earn any interest? I have heard two opposing answers: The $500 earns interest, and I ...
1
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1answer
239 views

What are the risks of allowing my stock broker to lend out my shares to short sellers?

Some types of brokerage accounts allow the stock broker to lend my shares to short sellers (probably without needing to notify me). Do I incur any risks when I sign up for such accounts? Is there any ...
1
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2answers
173 views

What happens when I want to sell my shares that are currently lent to a short seller?

Suppose I own 100 shares of a company in a margin account. Suppose the brokerage firm lends my shares to a short seller. Questions: Can I sell my 100 shares while they are still on loan to the short ...
0
votes
1answer
58 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 ...
0
votes
3answers
98 views

What's the story behind the Forex Broker

I would like to know when I open a position in market, what happened or what the broker does with my position really. Do I buy/sell anything in market or just we trade in market virtually and nothing ...
1
vote
1answer
81 views

Is it possible for foreigners to buy Indian stocks?

Is it possible for a person who is both a non-resident and non-NRI to buy Indian stocks? I am specifically interested in buying stocks listed on the NSE and BSE. Are foreign mom-and-pop retail ...
1
vote
3answers
111 views

Which US organization acts as the central depository for shares?

In Singapore, my shares are held by an organization known as the Central Depository (CDP). Regardless of which stock brokerage firm I am using, I can see the same shares, as all of the shares I own ...
2
votes
1answer
1k views

What do I buy when I buy fractional shares on eToro?

I am wondering on what exactly you buy when you buy fractional shares on eToro: The actual asset, i.e. the stock/share? You get dividends if the company pays any. It would still be yours if eToro ...
2
votes
1answer
232 views

Can a broker cancel market orders?

I sold my Tesla shares through the Revolut app. After I confirmed this, the transaction was in a "pending" state for several hours. After a few hours, I received a notification telling me ...
0
votes
1answer
253 views

How do brokers make money from fractional shares trades?

Let's imagine the following scenario Day one: the price of the stock XYZ was 47.50 during the whole trading day. After clearing, the total number of shares users have is 24.5. Broker buys 25 shares ...
12
votes
2answers
3k views

Why do some brokers allow selling naked put options but not naked call options?

I understand that holding short positions in naked options is risky because they are not backed by cash or stock in a brokerage account. I've noticed that some brokers allow the selling of naked puts ...
0
votes
1answer
334 views

I can't find a desired ETF on the popular UK brokerage firms - how can I find one that does?

If I wanted to put money in a specific ETF, namely ARK invest (ARKK), but it wasn't possible on the top UK brokerage firms - what should I do next? So I looked on hargreaves lansdown, halifax, and 8 ...
0
votes
1answer
166 views

Form W-8BEN at multiple stock brokers

I am a non-resident alien. I have an existing US stock brokerage account. When I opened that account, I had to fill in and submit a W-8BEN form. Now, I am going to open a second US stock brokerage ...
1
vote
6answers
114 views

Schedule to sell a stock when it reaches a higher price (though not guarantee to sell it at that price)

Suppose I have a stock with price $30. I want to trigger selling it as long as it reaches $35 (even though it might be executed at say $34.7). Is there such an option in any brokerage (such an option ...
4
votes
0answers
52 views

What does “match us in the market” mean in the context of transferring shares between brokers?

I requested my company broker to transfer shares to my private broker and got a letter saying: We are reaching out to your broker to match us in the market so we can complete your transfer I asked ...
1
vote
2answers
91 views

Is there any problem in having 0 cash in your brokerage account?

Let's say that you have a brokerage account with $10000 and you want to invest that money in some financial product. Is there any problem in investing the whole $10000? I mean, is the ongoing charge (...
7
votes
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 ...
0
votes
1answer
49 views

initial margin calculation for multiple short positions

I've been trying to understand how margin requirements work for short positions (assume Reg-T US) to model for a backtesting software (I don't have direct experience with shorting, yet) I think I ...
0
votes
2answers
149 views

Is my FX brokerage manipulating my profit margin to pay out less?

USDCAD pair has moved 41.90 pips in my favour @ 0.01 lots (broker showing profit of $3.01) USDJPY pair has moved 52.30 pips against me @ 0.01 lots (broker showing loss of -$4.85) At $0.10 per pip (0....
3
votes
0answers
67 views

Is there any way for a non-US person to get a US-based bank account? [duplicate]

I live in the EU. After signing up with various brokers across the pond, I noticed that some have decent low-cost deposit/ withdrawal fees, while others' are abnormally high. For instance, ...

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