Podcast #128: We chat with Kent C Dodds about why he loves React and discuss what life was like in the dark days before Git. Listen now.

Questions tagged [brokerage]

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

Filter by
Sorted by
Tagged with
0
votes
1answer
24 views

what Is the relation between margins, brokers, and clearing members?

What is the difference between clearing margin and margin maintenance? I know that an investor in a futures contract is required to keep a maintenance margin with the broker. The broker will require ...
1
vote
2answers
94 views

What Actually Determines Stock Prices from a Given Broker?

When you look up a stock's price at a broker, where does that number come from, and who decides if it goes up or down? Sometimes it's said that "supply & demand" determines stock prices. This is ...
2
votes
2answers
105 views

Insurance for my brokerage held investments

This is not about protecting the VALUE of my investments against market fluctuations, stock prices drop ...etc. What I am looking for is to protect my investments in shares and options that I am ...
0
votes
1answer
37 views

Is there a UK investment brokerage allowing purchase of fractional shares / dividend reinvestment with low fees? [closed]

I am a UK resident looking for a stocks and shares brokerage for long-term value-investing. I am currently working with limited money for investing so am saving until I can buy complete stocks using ...
0
votes
2answers
117 views

What are the steps for opening an investment account and starting investing in the UK?

I want to start investing some money I have saved. I have investigated about this but I'm still not secure about what to do. I have called to my bank to ask questions but they didn't help too much ...
2
votes
2answers
200 views

Can a broker buy shares to cover naked calls without notifying me?

I sold some in-the-money naked calls, and found out the next day that the broker bought the underlying shares to cover the calls. They claimed that the underlying is hard-to-borrow and since the ...
3
votes
2answers
153 views

How to enter an order to buy or sell stocks with the intent to cancel without risk?

There was a market crash in 2010, in that it is alleged that the scammer entered the sell orders with intention to cancel. With my experience, once I enter an order( limit or market) with a ...
0
votes
3answers
174 views

Do I need a brokerage account to invest in ETFs?

I want to start investing in ETFs, but this is my first time doing this and I don't know what do I need to do for buying stocks. I want to buy some ETF that tracks an index such as S&P or FTSE100,...
3
votes
1answer
62 views

Securities lending program vs a Margin Account

Suppose I have a brokerage account and I am long on a stocks very heavily and there are short sellers who need this stocks from my broker. There are two ways a stock broker can lend securities held ...
1
vote
1answer
46 views

Why Can't Some Commercial Bonds Be Bought Through Major Brokers?

I am interested in buying a commercial bond issued by a coal mining company. The CUSIP is 62704PAM5. I searched online at tdameritrade.com and was not able to find the bond using their bond search ...
5
votes
1answer
211 views

How do US brokers make money and what should a consumer look out for?

My question is an extension of Brokerage Making money. Recently, Schwab and TD_Ameritrade have lowered commissions to zero. There are other brokers that also offer zero commission. I know there is ...
4
votes
2answers
660 views

Buying an US ETF from Europe using Interactive Brokers

I am trying to buy an ETF using my account in Interactive Brokers. I am surprised to see that it is not possible. I am living in Europe and trying to buy an ETF in US dollars. Their response to ...
1
vote
1answer
837 views

How many naked option contracts can I write if I want to use maximum margin

Let us say I want to write a naked option on SPX in my interactive brokers margin account. If this is the only position I wish to hold in my account, and I want to use maximum margin, then what is the ...
5
votes
3answers
146 views

Why are margin maintenance requirements based on total account value and not just the margin debt?

Just reading through Charles Schwab's margin brochure and saw this section... The securities used as collateral must maintain a minimum value relative to the account’s margin debit balance. ...
0
votes
1answer
135 views

What is “Stock BP” in a brokerage account that's not trading on margin?

I saw that this question was answered on reddit here as well as a similar question was answered on this S.X here. But I wanted to confirm the meaning of a "Stock BP" amount if I'm not trading on ...
2
votes
2answers
94 views

How are limit orders executed at market open when the bid price is above the ask price (negative spread)?

In what order and at what price would these orders be executed? Consider the case that both the buyer and the seller submitted orders to their brokers while the market was closed. It seems logical to ...
3
votes
6answers
6k 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 ...
2
votes
0answers
70 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
votes
2answers
114 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 ...
1
vote
3answers
150 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/...
0
votes
1answer
95 views

Should I close my other broker accounts?

I am new to investing. A few months ago, I applied for an Interactive Brokers account because a review site said it had low fees. It was taking a long time for me to transfer the funds to the account ...
2
votes
1answer
221 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 ...
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 ...
1
vote
1answer
224 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 ...
4
votes
3answers
235 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'...
3
votes
1answer
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: ...
2
votes
1answer
92 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 ...
29
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 ...
2
votes
2answers
141 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 ...
0
votes
3answers
105 views

Can stock brokerages be a publicly traded company themselves?

I searched it on the internets but it seems like it's so common knowledge that there are no articles or explanations about it. From a logical gut-feeling kind of guess, I would say no. Any ...
1
vote
1answer
168 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 ...
2
votes
1answer
137 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 ...
1
vote
2answers
122 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 ...
2
votes
1answer
555 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 ...
4
votes
2answers
299 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)...
3
votes
1answer
99 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 ...
2
votes
2answers
569 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 ...
0
votes
1answer
58 views

Online Investing and Trading Cryptocurrencies, Equities and Options in U.S. Markets [closed]

Would you be so kind and tell me which brokerage services might have fastest website and features (e.g., "limit orders", "stop limit orders", etc.) for trading cryptocurrencies (e.g., from BTC to DOGE)...
2
votes
2answers
161 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 ...
4
votes
1answer
417 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-...
2
votes
2answers
285 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 ...
6
votes
3answers
423 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 ...
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....
3
votes
1answer
60 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 ...
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 ...
1
vote
1answer
52 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: ...
2
votes
2answers
39 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 ...
5
votes
1answer
200 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 ...
1
vote
3answers
280 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 ...
2
votes
0answers
78 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 ...