Hot answers tagged

114

They call you, instead of the other way around. They promise more than 10% a year return*. They ask you for rapidly increasing sums of money. Multiple unrelated domains use their exact website. They ask for more money in the "trial" period during which you can't withdraw money. You find ZERO positive references for the company. They provided an erroneous ...


100

It is a scam. There are quite a few websites with different names but same layouts. https://www.master4x.com/index.php. https://www.8infx.com/index.php. https://topicmarkets.com/index.php Generally difficult to get money back. You can try legal recourse Found out one more website. https://xtradefx.com/# Related question I made an investment with a ...


96

This is part of highly sophisticated network of scammers. This scam is spread across hundred of websites (some list can be found here and here), most likely using "fake" or stolen details and they're very good at covering their tracks. Scam broker checklist They called you out-of-blue offering the great earnings. Check. They pressure you to keep investing ...


34

The Fidelity funds have an expense ratio, and while some funds may have little to no profit, having you as a customer lets them try to sell you on their managed account/portfolio and other services. It's possible they don't make much or any money from you at all, but with so many accounts it's fine as long as it averages out. Similar to having a credit ...


32

Brokers need to assess your level of competency to ensure that they don't allow you to "bite off more than you can chew" and find yourself in a bad situation. Some brokers ask you to rate your skills, others ask you how long you've been trading, it always varies based on broker. I use IB and they gave me a questionairre about a wide range of instruments, my ...


28

You got a call from someone, out of the blue, asking you for money. How is this not a scam? Cold calling is a good indicator of a scam. You also seem to be in denial of that fact that you’ve been scammed. If you want to be 100% sure it is a scam, simply ask them for your money back. Any legitimate broker will return your money.


18

In Canada, for example, they are expected or required to find out. They call it, The “Know Your Client” rule, part of which is knowing your "Investment knowledge and experience". They say it is, "to ensure their advice is suitable for you". I have always been given that kind of form to fill in, when opening an account.


17

If you don't know what one is, you don't have any. It's the Series X (Series 6, Series 7, etc) securities licenses. These licenses are required to sell specific types of securities. They typically require some level of specific education before you can take the exam and require continued education to maintain your license. Additionally many require you ...


13

So you think there is a business that can take $X and in two weeks turn it into $10X plus their profit. That means that in two weeks you can turn $1,000 into $10,000. So every two weeks you add a zero, in six weeks you add 3 zeros. In 12 weeks total your $1,000 is now $1,000,000,000; and in a few weeks after that you are richer than Bill Gates. All ...


12

Yes, there is a lot they are leaving out, and I would be extremely skeptical of them because of the "reasons" they give for being able to charge $0 commissions. Their reasons are that they don't have physical locations and high overhead costs, the reality is that they are burning venture capital on exchange fees until they actually start charging everyone ...


11

Investopedia has a section in their article about currency trading that states: The FX market does not have commissions. Unlike exchange-based markets, FX is a principals-only market. FX firms are dealers, not brokers. This is a critical distinction that all investors must understand. Unlike brokers, dealers assume market risk by serving as a counterparty ...


11

Legal requirements In many places there are legal requirements to do so, essentially made to prevent brokers from selling high-risk products as if they were deposits with guaranteed safety of your funds. There also may be prohibitions on offering high-risk/high-return products to beginner customers, e.g. requiring accredited investor status claiming that ...


11

If I buy the one from NSY, is it the "real" Sinopec? No - you are buying an American Depository Receipt. Essentially some American bank or other entity holds a bunch of Sinopec stock and issues certificates to the American exchange that American investors can trade. This insulates the American investors from the cost of international transactions. The ...


11

Here's how the scam works. Find a "hot trend" that people hear a lot about, but don't really know that much about. BitCoin is always in the news, and there's already a lot of spam flying around about ForEx. Design a product that is designed to give new investors access to these "hot trend" markets. Make it a little bit clunky and technical on purpose, ...


10

It isn't the first initiative (see link below) and maybe this one will stick around. Time will be a good test. Here is an article on it.... http://www.investopedia.com/articles/active-trading/020515/how-robinhood-makes-money.asp They plan to make money off unused balances - so they hope to get the masses signed up using the 0$ fees. Also, no type of ...


9

They are providing you a service and they charge you for it. The service includes giving you a trading platform(website and the infrastructure), doing all the background work for setting up services for you, relaying your orders to the market or as a broker fulfilling your orders, doing settlement when an order is matched, giving you access to the stock ...


9

The answer to your question is "no". Unless you specifically ask to receive paper share certificates, then brokers will hold your shares with a custodian company in the broker's own nominee account. If you are able to receive paper certificates, then the registrar of the company whose shares you own will have a record of your name, however this is ...


9

I'm not saying whether this is a scam or not, although it seems VERY fishy, but here's how the scam could work in a way that fits the facts: You give them a thousand Euros, which they "invest" for you. After a few weeks, they astound you by showing you that you now have 2,000 euros in your account. WOW! A 100% increase in a few weeks! They convince you to ...


8

Neither. Market orders are executed immediately (assuming there's a sell/buy pair of orders that can be matched), and the matching between the buyer and the seller is done by the exchange, not the broker. The sell price for the seller is the buy price for the buyer, always (for stocks).


8

They will make money from brokerage as usual and also from the interest they charge you for lending you the money for you to buy your shares on margin. In other words you will be paying interest on the $30,000 you borrowed from your broker. Also, as per Chris's comment, if you are shorting securities through your margin account, your broker would charge you ...


8

Stop orders and stop limit orders typically do not execute during extended hours after the general market session has closed. Stop orders are market orders and market orders especially are not executed during extended hours. Although there are exceptions because a broker can say one thing and do another thing with the way order types are presented to ...


8

All discount brokers offer a commission structure that is based on the average kind of order that their target audience will make. Different brokers advertise to different target audiences. They could all have a lot lower commissions than they do. The maximum commission price for the order ticket is set at $99 by the industry securities regulators. When ...


8

Here in the U.S., a realtor can act as a "seller's agent" or a "buyer's agent". I think what you are calling a "broker" in the U.S. we call a "buyer's agent", and this may just be a difference in terminology, from your post it sounds like the concept is the same. I am answering from a U.S. perspective, please let me know if something doesn't make sense in ...


8

TLDR: Yes you can. That is quite a steep price to pay for a trade. I've used TradeKing previously, which would charge you $5 for that same trade. Some other brokers are more or less expensive, and it is normally representative of the service one receives. One option would be Scottrade. While they are much more expensive than TradeKing, they offer a ...


7

Yes. A broker can charge you for opening an account, if you agree to this. Make sure you check what you are agreeing to, when opening your account. Many brokerages will only charge you a per-transaction fee. In some cases, even that fee may be waived. I buy my mutual funds through TD Waterhouse (in Canada), for example, and pay no fees because of my other ...


7

In general, how I choose a provider or product is: Make a short list of ones that seem popular or worth looking at. By looking at their web sites, make a spreadsheet or document listing features, range of products, response times, rates, fees and other costs, and any other factors on which you might want to choose between them. Think about which of these ...


7

Market makers, traders, and value investors would be who I'd suspect for buying the stock that is declining. Some companies stocks can come down considerably which could make some speculators buy the stock at the lower price thinking it may bounce back soon. "Short sellers" are out to sell borrowed stocks that if the stock is in free fall, unless the person ...


7

I'm going to assume that you want to be invested all the time and each trade consists in selling a security and buying another one (similar to your example). How much commissions you are willing to pay depends on several factors, but one way to think about it is as follows. You have a position in stock A and you want to switch to stock B because you think ...


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