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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5
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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 ...
3
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1answer
150 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 ...
1
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2answers
109 views

Are institutions like UBS limited in what they can buy, does that put the investor at a disadvantage?

I try to help with the finances of family members to make sure they are making wise decisions. I have a family member that is invested with UBS, and they have a financial advisor there that they have ...
4
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1answer
128 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 ...
1
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0answers
63 views

What are the costs associated with the buying and selling of US Stocks for a UK Citizen?

So far from my research I have estimated costs, ignoring fluctuations in foreign currency exchange, for a trade profit of < $9,000, held for less than 1 year as: US capital gains tax 10% of profit ...
5
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1answer
292 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
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4answers
534 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 ...
1
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2answers
155 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 ...
2
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2answers
299 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 ...
3
votes
1answer
113 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 ...
1
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1answer
161 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 ...
16
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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 ...
3
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1answer
4k 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
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1answer
118 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 ...
8
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2answers
670 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.,...
1
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1answer
87 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 (...
3
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2answers
156 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 ...
2
votes
2answers
42 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 ...
0
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3answers
95 views

Is a 40-50% Brokerage Fee Reasonable for Items Shipped Across the Border?

Recently I had a package shipped by UPS. When the man came he said I owed $49 in brokerage fees, almost HALF of the total value of the $100 item. Is it reasonable to charge this much?
4
votes
1answer
692 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 ...
8
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2answers
24k 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?
0
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2answers
862 views

When you transfer stock from one broker to another, is cost basis sent to the new broker?

When you transfer stock from one broker to another, is cost basis sent to the new broker? Here is my case: I want to transfer some vested shares from Schwab EAC to plain old Schwab. Schwab EAC is ...
1
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0answers
89 views

UK citizen trading in USA?

I am a UK citizen and have worked in the US in the past on work visa. I am back in the UK now but want to start investing in the US stock market. I have a valid SSN and a US back account. Are there ...
-1
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2answers
460 views

Best buying price on stock marketing based on market depth detail (CSE atrad tool)

I'm willing to buy some stocks from specific holdings. And on the trading tool there is a portion shows bid and ask list. Here I attached the screen shot of the window. What is the side (bid / buy) ...
2
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0answers
665 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 ...
-2
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1answer
142 views

Do those who invest large amounts of money in stocks pay typical brokerage commissions?

I actually invested $2000 in stocks, and paid brokerage fees of 0.5% to the broker on both sides (buy & bell) or approximately $22.50 ($10 + $12.50 in commissions after a gain of $500). So my ...
11
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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 ...
2
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3answers
4k 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 ...
0
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1answer
165 views

I need to open a brokerage account in the US from AUSTRALIA

Does anyone know if I may be able to open a brokerage account in the united states but living in Australia, to use in trading.
1
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3answers
139 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. ...
5
votes
4answers
22k 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?
1
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1answer
810 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 ...
0
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0answers
138 views

Transfer shares to avoid brokerage fees

I like Fidelity better than Vanguard in regards to web interface and customer service. Vanguard has better funds for the way I wish to invest. Since I plan to invest in a dollar/cost averaging manner ...
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
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0answers
338 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 ...
1
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1answer
65 views

Trade ETFs with Banks' Brokerages or separate Discount Brokerage? [closed]

Hereafter, all money is in Canadian Dollars. My relative in Canada banks with HSBC Canada, is an Advanced customer, and possesses an HSBC InvestDirect account. She buys and holds for the long run, ...
-1
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1answer
114 views

How can I simplify my interactions with my online brokerage for buy, selling, and rebalancing mutual funds?

Whenever I want to buy or sell mutual funds, it ends up being a multiple day process for me. For example buying mutual funds: Visit my brokerage account and have them transfer the funds in from my ...
1
vote
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 ...
-1
votes
1answer
157 views

How can a retail trader work on improving his trade execution

In some trading books, the trader is advised to work on getting better execution. What does this really mean? For execution, the trader is at the mercy of the broker's algorithms and infrastructure. ...
1
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2answers
132 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 ...
-3
votes
1answer
71 views

What is the calculation of net asset value of my brokerage account

In my brokerage account, is my total account balance (cash + equities) the same as the net asset value of the account? Or is there a difference?
2
votes
1answer
270 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 ...
2
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2answers
140 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 ...
1
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1answer
863 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 ...
2
votes
2answers
525 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 ...
1
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1answer
148 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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2answers
1k views

Interactive Brokers Margin Accounts

I've read the margin documentations on IB but am not sure given the following scenarios. I have a reg-t margin account trading stocks/etfs. Scenario 1: I do weekly re-balancing of a portfolio of 1-...
0
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4answers
499 views

Why should I choose a 401(k) or IRA over a standard brokerage account?

401(k)'s and other retirement accounts have limits on restrictions on when your money can be withdrawn. But let's say I score a job making a huge sum, can save a lot, and want to retire decades early. ...
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?
0
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1answer
157 views

Is it possible that for shares to be reinvested in a stock you already sold?

I just recently set my taxable investment account from reinvest dividends to deposit in cash. However, there seems to be a delay (I assume related to one of the various dates associated with dividends)...