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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44
votes
13answers
14k views

Is it a good idea to copy a trader when investing?

I constantly get bombarded with an etoro commercial on youtube about a feature where you can replicate someone else's trading activity in real time. More details here. You select another trader and ...
34
votes
4answers
2k views

Why do a lot of people recommend Vanguard so often?

What is it with Vanguard? I've heard the name come up a bunch, but I don't know why this particular company is getting all the good free press...
30
votes
9answers
9k views

How can a resident of the European Union (not from UK) practically buy stocks? [closed]

I'd like to buy a little amount (say, 5000 €) of stocks. I know it's risky, especially for an absolute beginner like me. Maybe you would like to persuade me to start with stuff such as such as mutual ...
22
votes
8answers
3k views

How do I get into investing in stocks?

How do I get into investing in stocks?
18
votes
5answers
27k views

Why does my bank suddenly need to know where my money comes from?

Today, I went to my brokerage account at Wells Fargo and the page said that online trading was suspended. I called them and the rep. said, "We need to know where your money came from." This is an odd ...
16
votes
2answers
3k views

Why do 1099 forms take so long for brokerages to prepare and send out?

I generally have my taxes done by mid January when my W-2 becomes available, but I'm often stuck waiting as long as another month before I can file because I'm waiting for my brokerages to send me my ...
11
votes
3answers
1k views

What are the cons to using a brokerage account for day to day banking?

I've noticed (for awhile now) that my online discount brokerage account carries many features of a traditional bank account: Online bill pay Direct Deposit Checks ATM Card FDIC or SIPC coverage Cash ...
11
votes
5answers
4k views

Why can Robin Hood offer trading without commissions?

I was wondering why the startup Robin Hood can offer free stock trading, while other online stock brokers ask commissions. How is it possible that this is the first initiative that offers this kind of ...
10
votes
2answers
5k views

Do margins on a brokerage account affect your credit score?

If you have the ability to trade on margin, will this improve your credit history/score? If you refuse to pay the margin and lack the funds to pay for the money borrowed, I understand that it can ...
9
votes
2answers
4k views

Why does a no-load fund have transaction fees? Isn't that a contradiction?

According to Scottrade's website, the T. Rowe Price Retirement funds are "No-load" but at the same time "Transaction fees apply". I thought the whole idea of No-load funds was not having any ...
9
votes
2answers
1k views

How can I purchase Skype stock during the IPO?

Skype will be going IPO soon. How can I purchase their IPO stock?
8
votes
2answers
23k views

Where does the money go when I buy stocks?

Let's say I spent 10k and bought some shares of stock A, where does the cash 10k go? Does it go to the stock broker and then the stock broker gives the money to the company of the stock A?
8
votes
4answers
356 views

Other than being able to borrow to invest, how is a margin trading account different from a cash account?

Other than being able to borrow against one's portfolio value to purchase additional investments, how is a typical brokerage margin trading account different from a typical cash trading account? ...
8
votes
5answers
924 views

Checking to brokerage transfer latency: Why does it take 3 days to move money, even at the same bank?

It takes my bank 3 days to transfer money back and forth to my brokerage account, even though my checking and brokerage accounts are both with the same bank. I don't understand why in the digital age ...
8
votes
1answer
4k views

Is SIPC coverage on cash as strong as FDIC?

I'm considering opening a brokerage account with a broker that is requesting $10,000 minimum funding. That money will not go to an FDIC covered bank account. But the broker does have an SIPC insurance....
7
votes
1answer
510 views

When you buy mutual funds through a broker, where are the shares held?

This question arises from a previous one regarding managing all one's investments from one screen on a brokerage house's web site, and a recent answer by @Patches regarding segregation of the ...
7
votes
3answers
9k views

How can a U.S. citizen open a Canadian brokerage account?

Is there any way to open a Canadian brokerage account while still being a U.S. citizen? I would like to open an online brokerage account if possible in Canada to trade on the TSX (I hate ADR).
7
votes
1answer
1k views

Wells Fargo Brokerage has no shares of stock to short

I want to short several hundred shares of a stock. Wells Fargo brokerage has no shares to short. Would a different brokerage be likely to have access to shortable shares, or do they all access the ...
7
votes
1answer
88 views

What is the interest rate online brokerages paying out tied to?

From my understanding it's tied to something called the 'prime rate', but what is that really and who determines what it is? Is it always less than the rate of inflation?
7
votes
2answers
655 views

What are the effects of Ameriprise moving my mutual funds to a brokerage account?

I have some long-held accounts at Ameriprise (currently branded as Columbia mutual funds). I just received a letter dated Nov-1 which starts thus: As a client of Ameriprise Financial Services, Inc.,...
6
votes
2answers
21k views

What does “this trade was unsolicited” mean on a brokerage confirmation?

I sold some stock in my IRA brokerage account with Vanguard. Everything seems to have gone through fine, but the confirmation states in all caps that "this trade was unsolicited." I'm just curious ...
6
votes
3answers
422 views

Can stock brokerage firms fail?

Can brokerage firms like Fidelity, TD Ameritrade, or Vanguard fail? They seem pretty unshakable, but the recent financial crisis made it clear that even very large financial companies can fall. And ...
6
votes
2answers
1k views

What is the correct way to report a tender offer fee on my taxes?

In 2011, I participated in a tender offer for Sunpower which had a fee of $25. My broker's tax form 1099B showed the proceeds from this offer but did not exclude this fee. My own calculations did ...
5
votes
4answers
20k 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?
5
votes
5answers
2k views

Automatic investments for cheap

I'm looking for a way to do automatic investments (say to put $100 every month into an index fund). I use Sharebuilder for my regular investments, but it looks like they charge $4 per transaction for ...
5
votes
4answers
6k views

FDIC vs SIPC: Are they the same?

Before posting this question I did read Is SIPC coverage on cash as strong as FDIC?, but the answer did not seem to make much sense/lacked many answers to help clarify for me. I was doing some ...
5
votes
2answers
688 views

Can you use external money to pay trading commissions in tax-free and tax-deferred accounts?

I contribute the max to my Roth IRA every year ($5500 in 2013, for example). However, let's say I use that money to buy two stocks, with a commission $10 each, so I am effectively only contributing $...
5
votes
1answer
395 views

Exchange Roth IRA mutual fund to Roth brokerage account

Will I incur taxes for exchanging funds in a Roth IRA mutual fund (Vanguard) for a Roth IRA brokerage account?
5
votes
1answer
898 views

How are brokerage accounts protected from theft, computer glitches and fraud?

I'm thinking about investing in stocks, but I'm worried about losing my investments for reasons unrelated to changes in the market. I know that brokerage accounts are not FDIC-insured. What if a ...
5
votes
1answer
4k views

Understanding summary of brokerage account value, cash balance, buying power?

I am totally new to stock and their trading. I have questions when I was trying to understand an account at a brokerage company: Account 12345678(Margin) Net Liq Value $23,416.36 Buying Power - ...
5
votes
1answer
15k views

Can I transfer my Employee Stock Purchase Plan assets to a different broker?

I'm considering consolidating my assets with a single broker; is there any way I can transfer the shares I own to another manager? The trick is that each ESP purchase has a 2 year period before I ...
5
votes
1answer
183 views

What happens when a stock gets removed from the exchange I used to buy it?

I own stocks of Siemens Gamesa which I (foolishly) bought via the XETRA stock exchange instead of the more liquid Spanish Mercado Continuo. The stock has always received little attention and liquidity ...
5
votes
1answer
7k views

What is the fee charged for ADRs, which is deducted when dividends are paid?

My brokerage charges me a fee to hold ADRs; this fee is deducted anytime the ADRs pay dividends. I'm told that this is a standard fee and could not be negotiated. Is this fee truly carved in stone, ...
5
votes
1answer
63 views

Are DRIPs subject to a settlement period?

Are DRIPs subject to a settlement period (e.g. T+2)? Does the answer depend on whether the dividend reinvestment accounts for complete shares vs only fractional shares? Are there any time ...
5
votes
1answer
267 views

Recover long lost shares held by brokerage that got acquired

I am a UK citizen and had a brokerage account with suretrade.com in 2001, with a number of positions in NASDAQ traded companies which today would be worth a few thousand USD for the companies still ...
4
votes
4answers
524 views

Am I scammed by this company?

I'd like to ask for a bit of help. In a bad moment I put a good amount of money into a supposedly broker firm. Now we are in a situation where it happens my shares are preferred shares and they can't ...
4
votes
1answer
366 views

Is SIPC a scam or does it protect investors from fraud?

I was trying to understand if SIPC is going to protect me. Despite the higher limit, even for small investors, it can be a problem if I consider https://www.pbs.org/newshour/nation/why-brokerage-...
4
votes
1answer
126 views

Why might a brokerage firm stop offering a particular ETF commission free?

I have been happily buying units of IVV commission free via TD Ameritrade. They just revised their list of free ETFs and sadly IVV is not one of them. Most of the other institutions don't offer it ...
4
votes
2answers
202 views

Can I roll back an accidental brokerage & retirement account transfer?

I transferred my accounts (Brokerage + Traditional IRA + Roth IRA) from E*Trade to Edward Jones in full. I didn't realize a couple things in the process: That fees would be assessed ($180). That the ...
4
votes
3answers
226 views

What's the point of checking and brokerage accounts being separate?

On Schwab, I have both a checking and a brokerage account. When I want to buy stock/ETFs, I have to transfer money from one to the other. I can just do this from a webpage, relatively instantly. What'...
4
votes
1answer
672 views

Bank money market account vs. Brokerage money market fund

I would like to ask about the differences between BMM's and Brokerage money market funds (besides one being an account and the other being a fund). What are the pro's and con's of one and the other? I ...
4
votes
1answer
167 views

Borrowed shares how are they tracked?

When a short position is opened in the stock market how does the brokerage know whether the trader has actually borrowed the shares or not?
3
votes
2answers
245 views

How can I request and verify that my identity information is purged from a bank I no longer use?

I have consolidated a lot of finances from several banks (Chase, a Credit Union) and brokerage houses (Schwab, Fidelity) and since I no longer use these institutions I would like to request a complete ...
3
votes
2answers
4k views

Can I withdraw cash from selling investments before the settlement date?

If I sell stocks, will I be able to withdraw cash from the proceeds that same day or will I have to wait until the T+3 settlement date? Does it depend on the brokerage?
3
votes
1answer
58 views

What is the typical time taken for SIPC to return money and stocks to brokerage clients when the broker goes under?

SIPC's job is safeguard the money and securities of brokerage clients when broker goes bankrupt. One of the tasks is to speed up the return of these possessions to the clients. Going by past ...
3
votes
1answer
93 views

How does a private entity FINRA have authority to impose fines

FINRA is a private entity per https://en.wikipedia.org/wiki/Financial_Industry_Regulatory_Authority and per http://www.finra.org/industry/disciplinary-actions and also otherwise its revenue comes from ...
3
votes
1answer
50 views

What recourse does FINRA provide?

I am contemplating bringing a complaint against a brokerage regarding an order in good standing that was not processed correctly. If FINRA does find against the broker, other than fines/sanctions, ...
3
votes
1answer
988 views

Is Tradeking collecting too much information when I open an Roth IRA?

I recently signed up with Tradeking a Roth IRA account. During registration, I entered my home address DOB and SSN. I was ok with it. But then Tradeking started sending me emails (1) the first one ...
3
votes
2answers
280 views

Execute or trade an options contract?

Take this call for example: FIO Jan13 22 Call Let's say this Thursday the stock goes to $23. Here is my math: Cost of option: $35 Cost of stock bought at $22: 100x$22 = $2,200 Thursday price of ...
3
votes
1answer
101 views

Money-market or cash-type ETFs for foreigners with U.S brokerage account

Non-US investors who have cash in their U.S brokerage accounts, say Interactive Brokers, will be subjected to U.S estate tax. What are some securities, ETFs that are close to cash that these foreign ...