84

The first thing that pops up when you open your link is a disclaimer: 66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. 66% isn't a very reassuring number for blindly following anonymous strangers ...


62

Well, consider it from the other side. Why would a trader be willing to share trades? Consider the following scenario. The reference trader makes a trade in a low volume market. The trade is published so that everyone can see it. Multiple people copy the trade as best they can, but ... The price moves due to the uncommon level of demand. The ...


45

Well, one sensible thing to do with it is paying down the mortgage to finish it asap - that will give you even more leftover money. First, you do save (and thus get) 2.8% as per your own information. That is not bad for an investment. Second, though - once paid off you have even MORE money AND the freedom to know you own your home. Heck, you an start putting ...


32

There are probably many correct answers to this question, but for most people, the main reason is qualified dividends. To be a qualified dividend (and therefore eligible for lower tax rates), the dividend-paying stock or fund must be held for "more than 60 days during the 121-day period that begins 60 days before the ex-dividend date". Since many stocks and ...


31

If you're just planning to buy-and-hold, it is worth considering whether the value of the time you spend on searching for a cheap brokerage will not dwarf the savings. Around here (Denmark) banks don't generally seem to charge fees merely for holding stock for you. They charge a commission for each trade, some fractional percentage of the value which could ...


28

First of all, congratulations on what you've accomplished. About the only remaining conventional tax-advantaged option is a Health Savings Account (HSA), and that's only available if you have a high-deductible health plan. Deposits into an HSA are pre-tax, and can be used for just about any medical expense. After that, I would consider a standard non-...


27

I don't think that there's a way to maximize this. Even more importantly, you shouldn't be attempting to do so. Whether you're investing or you're actively trading, you should place your trades based the merit of the trade rather than the cost of doing the trade.


25

A stock can only lose ~100% of its value on the downside, so while the risk is high it is effectively capped and definable selling naked puts as you can't go lower than zero on equities. Selling naked calls opens you to potential infinite risk as stocks can easily rise 100s (if not 1000s in some case) of percent higher from where they currently are. Compare ...


24

As with all crimes there is a huge difference between violating the law and being caught. Probably the most problematic and easiest SEC rule for a small investor to break is insider trading. In most firms employees are informed of changes to the firm's financial situation or new clients that are close to signing in town halls before they are released to the ...


19

For about 100 years or so, stock quotes (symbol, price, volume) were transmitted by telegraph. Many traders of that era were tape readers, often sitting in the office of their broker before phones were in wide usage. This was replaced by electronic communication networks (ECNs) circa 1980. Until about 10 years or so ago, 'open outcry' was the method for ...


17

When you buy a share of stock, you are almost always buying from someone who previously purchased that share and now wants to sell it. The money -- minus broker's fee -- goes to that other investor, which may be a person, a company (rarely the company that issued the stock, but that will occasionally be the case), an investment fund, the "market maker" for ...


15

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 ...


15

First off, congratulations on getting mostly debt free and having so much extra! That said, even though $700 extra sounds like a lot, it isn't. You already have a 1 year emergency fund, so that's good, which wipes out my first suggestion. You also wiped out my next suggestion, which is looking at improvements to your house, such as appliances or other ...


14

Again great job. To me you have really two choices and no matter what you choose you will end up with the second choice eventually. First choice: Throw more at the mortgage. You may want to do this some of the 700 or all. Doing this, you will eventually pay off the house and will be left only with the second choice. Second choice: Open up a brokerage ...


12

Contracts For Difference (CFD) are not investing. They are a form of gambling tarted up with the appearance of investing by the platforms that market them. It is not a good idea to trade in CFDs. I haven't run any numbers, but you'd probably be better off just gambling at a casino. The house edge is probably lower (if you choose your game wisely). Since it ...


12

Your confusion appears to be due to a poor summary in the CNBC article. Where they had: The shares will be distributed to shareholders at the close of business on August 24, and trading will begin on a split-adjusted basis on August 31. The actual Apple announcement linked in that article contains: The Board of Directors has also approved a four-for-one ...


11

The idea that you should pay $5,000 up front to convert your shares and sell them to ultimately receive some larger amount is crazy. If in fact the shares need to be converted (unlikely), they should be able to deduct the fees from the proceeds of your transaction, and you would not be out-of-pocket anything at all. You didn't provide much in numbers, so I ...


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

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 ...


9

There is a subtle difference. In an FDIC insured bank account, you are guaranteed to get all of your money back out. If you put $1000 into your bank account, you are guaranteed to be able to get at least $1000 back out when you want. The value of the account (in dollars) can never go down, for any reason. When you put money into a brokerage account, cash ...


9

You should contribute as much as you can to get the full company match. That is a 100% return on your investment and you're not going to beat that - it is literally free money. Once you've done that then you can look to other investments. You can certainly have money pulled from your paycheck into a brokerage account. Fidelity, TDA, Schwab, etc all ...


9

Larry Kotlikoff, who wrote the two 2014 articles that you referenced, uses very strong rhetoric in describing the SIPC: "terrible risk," "financial fraud," and "bigger scam than Madoff." He advises you to "close your brokerage account," and "avoid spending any withdrawals" for six years, presumably the amount of time that the SIPC could confiscate those ...


9

Banks that offer brokerage services tend to charge high commissions and some charge additional account maintenance fees. Therefore, it's possible that your bank may not be the best choice. Best broker depends on what your needs are. If all you want is the ability to buy and sell stocks occasionally, I'd suggest that you look for a reputable broker in a ...


9

(All slightly guessing: this is how things are in one or two European countries I know, and chances are your European country works similarly - but things do differ between countries - so please double check how it is actually for you) I'd suggest to start with a broker that operates in your country. Once you know how things work locally, you can explore ...


9

What you want is a simple discount brokerage. Brand names here in the US include ETrade, Vanguard, Fidelity, Charles Schwab, and others. Some of them do business in Europe (though Fidelity US split from Fidelity Europe), and there will likely be comparable companies in Europe which do this. Features are generally Buy any major stock, mutual fund, ETF, ...


8

Make sure you understand the difference between SIPC (Broker-dealer failure) and FDIC coverage, and which funds are protected by which insurance. Evaluate the account knowing that it is online only, and make sure that the fees and limits work for you. It takes an awareness of the difference between your investment funds and your normal day-to-day operating ...


8

For a trustee-to-trustee asset transfer from a mutual fund inside a Roth IRA to a brokerage account inside a Roth IRA, no. If you take a distribution mutual fund Roth IRA with the intention of paying the money into your Roth IRA brokerage account, then taxes may be withheld from the distribution. In this case, you will need to come up with the difference (...


8

No, it is not. Fundamentally because TRADING IS NOT INVESTING. So, you basically do not invest at all, you turn into a trader. As such, it can never be a good investment. Disclaimer: I trade,


7

If your broker charges a transaction fee, it is likely that the fee is charged per transaction and so since the additional purchase is a different transaction, you will be charged the fee again. If you decide to purchase the additional shares on the same day as the first purchase, and the mutual fund is not an exchange-traded fund (ETF), then as far as the ...


7

A protection similar to FDIC for banks is provided to brokerage accounts' owners by SIPC. Neither FDIC nor SIPC provide protection or insurance against identity thefts or frauds, only bank/brokerage failures. Your investment losses are obviously not insured either. For fraud liability check your bank/brokerage policies, you can get insurance for identity ...


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