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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3k views

How do brokerage firms make money?

I know that this question has been hinted at on other open question sites like Quora but I have yet to find anyone who lists all of the points in one place. I understand that firms make money by: ...
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1answer
144 views

How do I pick the right company for investing services?

I am looking to move forward with my life and get my finances on track/be financially responsible. Part of that plan has me wanting to start looking at investing and other means to help grow my ...
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2answers
2k views

Finding a Brokerage for Dollar-Cost Averaging

What lessons can you share when practicing dollar-cost averaging with a discount brokerage? The goal is an inexpensive way to invest with every paycheck. With amounts that small, commissions have a ...
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2answers
146 views

Contract notes in India: Benefits for delivery trades?

Suppose I buy equity in an Indian online brokerage on delivery basis (not day trading), intending to hold the equity for extended periods of time. What is the benefit of asking and paying extra for a ...
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6answers
5k views

Exercising an option without paying for the underlying

As a follow up to my other question, I would like to know whether the following is possible: I have $20,000 in my brokerage account The price of the $300 call is $5.00 (1 contract = 100 shares) I buy ...
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2answers
523 views

Brokerage's calculation of my profits or losses on stock trades

I've noticed that my brokerage (Wells Fargo) uses a different system to calculate my profits and losses, instead of the mental accounting I follow. E.g., I buy 100 shares of stock A in July 2014 at ...
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2answers
2k views

Selling Stock - All or Nothing?

On Tradeking, I have roughly 20 shares of 5 different stocks that I'd like to sell. When I set these parameters: price: X shares: 20 or fewer order: limit/day order options: all or none I find out ...
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2answers
160 views

How expensive is it to keep minimal cash at a brokerage?

With the recent events at MF Global, I am reluctant to keep any more than a minimum of cash at any brokerage; it seems that in the cases of fraud, you either don't get your money back or it may take ...
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2answers
72 views

How do trading platform like TD-AmeriTrade or Fidelity work?

When an individual places a trade on an online brokerage, is it against their order book or is it against the order books of exchanges like NYSE? Do brokerages warehouse some risk when making markets? ...
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1answer
182 views

What is the cost of “free” trades?

It's not unusual to get a certain number of free trades when you open a new account at a brokerage, but some firms have gone as far as effectively eliminating trading fees altogether. For example, ...
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2answers
93 views

Can a brokered CD still count as “Massachusetts Bank Interest” for income tax purposes?

On the Massachusetts income tax Form 1, line 5 is for "Interest from Massachusetts Banks". This interest income gets an amount deducted from it ($200 for married filing jointly), and is reported there ...
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2answers
128 views

How can I practically buy bonds?

A moderately low risk of investment is a government bond. If I understand correctly, I spend €1000 on a 5-year bond at a yield of 1%, then in 5 years I get back 1000*(1.01)**5=€1051.01, unless the ...
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1answer
66 views

Tax implications of transferring directly-owned stock to a brokerage account?

I don't know all the proper terminology so I hope this is understandable. My father gave me a chunk of stock. The stock I now own is directly bought and handled through the company who's name is on ...
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2answers
263 views

Downside of having multiple brokerage accounts?

I have around 4-5 long term objectives, that I would like to invest towards separately. I was planning on opening a separate brokerage account for each objective. The benefit would be that each ...
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3answers
3k views

How does a brokerage firm work?

I'm new to finance, thus please fix me if i misunderstand something. As far as i know, one can get an account on a brokerage firm, and have ability to trade on multiple exchanges. Good use case for ...
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2answers
1k views

Trading on exchanges or via brokerage companies?

I was wondering what relations are between brokerage companies and exchanges? Are brokers representing investors to trade on exchanges? For individual investors, what are some cons and pros of ...
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2answers
242 views

Does SIPC protection apply if a brokerage doesn't actually purchase securities?

Suppose there is a brokerage (not like Madoff case), where investors buy ordinary stocks/ETFs (qqq, brk-b orcl or any stock traded on NASDAQ/NYSE, not pink sheet or unlisted) at a time (and never sell)...
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1answer
105 views

I trade options in the U.S. using Schwab. How could my wife do the same in Canada?

I'm an American, married to a Canadian. We split time living in both countries. I trade options and have a stock portfolio using Schwab. My wife would also like to have a similar portfolio of stocks ...
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2answers
133 views

Can expense ratios for certain ETFs differ between brokerages?

I have an account with two different online brokers. I've noticed when comparing the two sites, that one of them seems to have lower expense ratios for ETFs than the other. Is this possible or am I ...
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1answer
463 views

Can I open an investment account in the US for my US citizen sister living abroad?

Here's my issue. I have a sister that lives in Israel. She is a US citizen, and holds a US passport, and is also a citizen of Israel. 20+ years ago, they opened a Cash Management Account (CMA) in ...
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1answer
191 views

How does ownership in fractional shares work?

I've been trying to find out some more information about fractional shares, and how they work. I understand conceptually, you own x% of a share rather than x "full" shares, but I'm curious about how ...
2
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2answers
253 views

Diversify across multiple brokers?

Right now my brokerage account has a non-trivial fraction of my total assets. It's all in a single account with Interactive Brokers. I know in theory customer funds and assets are ring-fenced, but ...
2
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1answer
265 views

Direct Registration System vs Brokerage Firm

A year ago I bought 10 X stocks. Time flew by and I checked my stock account and I had received a whopping 10 EUR in dividends. Sadly it all was eaten by account management costs, which is about 24 ...
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0answers
62 views

Canadian nomad, USD earnings - how to invest/preserve currency

I'm a Canadian tax resident who moves around a lot. Exchanging currency stresses me out so much if I think about it that I basically have just decided to accept volatility. I work online, and am paid ...
2
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1answer
212 views

Should one file 1040X to get extra $5 tax refund [duplicate]

After I finished my taxed in last week of March, I received a Updated 1099 with only one modification where 199a is modified from zero to $50 or so. Refund is about to come in a week. Initial values ...
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0answers
63 views

How do you know if stock warrants are american or european style?

On interactive brokers i was looking at some put warrants for GE which are being traded on the frankfurt exchange but i don't know if i can exercise them when i want, since I don't know if the ...
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2answers
36 views

Have brokerage and DEMAT account in separate places in India

Can I have brokerage and DEMAT accounts in two separate institutions - or do they have to be in the same institutions? For example, can I have a brokerage account at zerodha.com and a DEMAT account ...
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0answers
610 views

How to transfer Brokerage Account from USA to Canada?

I am a new permanent resident in Canada (Venezuelan citizen). Since several years ago I have brokerage accounts in the US (in OptionsExpress). OptionsExpress doesn't serve Canadian residents, so I ...
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0answers
324 views

Mass RSU grants vesting — should I worry about the stock price?

My company was acquired almost a year ago. In the acquisition, most employees received RSU grants which vested on a 1 year cliff. These RSUs are managed through Etrade. My options for tax purposes ...
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3answers
270 views

Take money out of paycheck into income producing asset(s)

My company has a 401k plan where they would take out money from my paycheck and match whatever I put into it. The concept of taking money out of my paycheck every two weeks and put it into a ...
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1answer
310 views

Do transaction fees for mutual funds apply when purchasing additional shares?

My broker charges me a $19.99 transaction fee when purchasing some mutual funds. I believe that they will also charge this fee when selling shares in the fund. What is not clear to me, is if they ...
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2answers
129 views

Are there any caveats to withdrawing funds from brokerage?

I have recently opened a brokerage account and want to deposit some funds. Before I begin investing, I am curious if there are any caveats to withdrawing my money in the future. I am a US citizen ...
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1answer
266 views

At Questrade, based on the commission schedule, does an investor need to buy a minimum of 495 shares?

From this link: http://www.questrade.com/trading/tax_free_savings.aspx It says : commissions are 1¢ per share, $4.95 minimum / $9.95 maximum. That means , the investor needs to buy a minimum of ...
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2answers
7k views

How does transferring to a new brokerage account work?

I currently have 2 brokerage accounts - one at Schwab and one at Vanguard - I would like to consolidate them both at Vanguard. How does that work? Do the stocks (mutual funds in this case) just ...
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3answers
132 views

How do stock brokers manage to get permission from the SEC to have extended hours trading?

Robinhood managed to get 9-5PM EST trading, while Webull managed to get 5:00AM-8:00PM EST, which is much wider than Robinhood's. I wonder how they get permission and what is the limit, or it can be 24/...
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1answer
163 views

How do fraudulent brokerages make money except for commissions?

I just read about "rip-off" brokers that try to lure you in for a deposit with very high leverage and then cash in your deposit when you lose the money. But how does this work? If you lose all your ...
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2answers
123 views

Make disbursements from brokerage account

I am thinking of opening a brokerage account for the first time and wondering how I can do disbursements from it for large purchases, like a car, for example. I do not plan on getting checking for the ...
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1answer
423 views

Is reimbursement of a brokerage transfer fee taxable income?

I switched the brokerage for a taxable investment account last year. The new brokerage reimbursed the transfer out fee of $50 from my old brokerage. I don't have my 1099s yet but I noticed in the ...
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1answer
192 views

Could my app take deposits from and execute stock trades for others but using my own brokerage account?

Don't know if this questions belongs here but I'd figure this place is the closest in relevance. Basically, I want to build an investing application that is open for the public to use. Many ...
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1answer
66 views

How does a company redeem its preferred stock?

This question follows from: What does it mean for a company to redeem its preferred stock? If I own a preferred stock and the issuer chooses to exercise its right to call, how does the redemption ...
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2answers
119 views

Broker Didn't Invest the Roth Contribution in the Tax Year They Said They Did - Now We are Behind. What can we do?

The short story is: In the spring of 2016, we gave our broker a check to max out our Roth IRA contributions for the tax year of 2015 (check was written and cashed by the broker before April 15 in ...
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1answer
93 views

What happens to personal data I disclose for joining an employee stock plan?

My employer has offered me to participate in a stock incentive program wherein I will receive a certain amount of stock in their American parent corporation on the (ostensibly) sole condition that I ...
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1answer
51 views

Different brokerage accounts for HSA, IRA, 401(k), misc.?

I truly cannot find this information on my brokerage website. I have a brokerage account for my HSA, and if I wanted to use this same brokerage to invest cash I have sitting in my bank acct. would I: ...
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2answers
420 views

Two Margin Accounts

Both E*Trade and TD Ameritrade have a policy that says an investor cannot have two margin accounts with them. He can have two or more cash accounts. Neither firm could tell me why they have this ...
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1answer
84 views

To park cash and have no risk of losing principal, how can I achieve in my IRA or brokerage a counterpart of a bank-like savings account?

I have $50k+ in my personal (taxable) and $50k+ in my retirement accounts. If I am conservative - I use a CapitalOne360 savings account (that in Sep 2016 yields 0.75%). For my cash in IRA (...
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3answers
136 views

Free brokerage vs paid - pros and cons

I currently have 30 free trades per month with a brokerage firm due to my account balances at their banking arm. I will typically trade a few shares of various companies in very small dollar amounts. ...
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1answer
800 views

Does investing in index funds on a monthly basis involve brokerage fees?

Let's say i want to invest in some index funds, and i know which ones to go for. Let's say i can also make the initial required minimum investment. My question is, will an automatic investment plan ...
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1answer
138 views

Covered call vs naked put in online brokerages

If a covered call has same risk profile as naked put, how come brokers allow covered call but only allow naked puts to experienced traders?
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1answer
237 views

Will foreigners using a US broker to buy non-US stocks be subjected to 30% withholding tax on dividends?

Currently, foreigners are subjected to 30% withholding tax on dividends when they buy US stocks through a US broker. Will they also be subjected to the same tax if they buy international stocks (say, ...
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1answer
137 views

Is U.S estate tax applicable to joint brokerage account of non-US citizens if one party dies?

This person has a joint account in Interactive Brokers with his wife. The couple are not U.S citizens. Suppose the husband passes away suddenly without warning. Is the joint account subjected to U.S ...