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
15k 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...
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 ...
22
votes
8answers
3k views

How do I get into investing in stocks?

How do I get into investing in stocks?
18
votes
5answers
36k 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 ...
17
votes
4answers
7k 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 ...
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 ...
12
votes
2answers
2k 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 ...
12
votes
3answers
2k 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 Robinhood offer trading without commissions?

I was wondering why the startup Robinhood can offer free stock trading, while other online stock brokers charge commissions. How is it possible that this is the first initiative that offers this kind ...
11
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?
10
votes
2answers
6k 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
29k 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
397 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
957 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
534 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 ...
8
votes
1answer
5k 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....
8
votes
2answers
686 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.,...
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 ...
7
votes
3answers
11k 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
2k 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
89 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?
6
votes
7answers
12k 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 ...
6
votes
2answers
23k 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
458 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
3answers
220 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. ...
6
votes
1answer
258 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 ...
6
votes
2answers
2k 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
27k 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
2answers
713 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 ...
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
7k 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
737 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
405 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
988 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
8k 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
18k 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
2answers
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, or ...
5
votes
1answer
240 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 ...
5
votes
1answer
2k 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 ...
5
votes
1answer
72 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
487 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
650 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
2answers
515 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
129 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
1answer
759 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
2answers
213 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
376 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
2answers
353 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)...