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20 votes

Is my investment safe if the broker/bank I'm using goes into insolvency?

A simple insolvency or bankruptcy of a broker shouldn't affect that status of ETFs and stocks you own, because they are not part of the assets of the broker. This is different from fractional-reserve ...
jpa's user avatar
  • 1,076
14 votes
Accepted

What do "unsettled funds" mean?

The term "unsettled funds" is a legal term, defined by legislation and judicial decisions and enforced/monitored by the SEC. The intuition is the idea that while a financial transaction on a security ...
BrianH's user avatar
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14 votes
Accepted

Is my investment safe if the broker/bank I'm using goes into insolvency?

I'm German, but not a lawyer, so I can't really make sense of the statute of the Entschädigungseinrichtung alluded to in another answer. But the reputed German finance/consumer magazine "...
henning no longer feeds AI's user avatar
13 votes

Are there brokers or companies who trade Forex and make money for us on our investment? And do you think fxtradeinvestment is legit?

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 ...
mhoran_psprep's user avatar
12 votes

Buying an US ETF from Europe using Interactive Brokers

If you have only EU/UK tax residency, you can buy any ETF with "UCITS" in the name - those conform to the new consumer information regulations. I gather that the expense ratios often aren't quite as ...
Amanda Debler's user avatar
10 votes

Is my investment safe if the broker/bank I'm using goes into insolvency?

It looks like there is a German guarantee scheme for this, through the Entschädigungseinrichtung der Wertpapierhandelsunternehmen (summary in English, or auf Deutsch). (I don't speak German but was ...
Andrew is gone's user avatar
9 votes
Accepted

Is my cash safe with Robinhood banking?

Your money is likely not insured as the SIPC said that the accounts they insure are not meant to hold cash strictly for savings. Cash balances sitting in accounts collecting interest for a long ...
user1723699's user avatar
  • 2,123
6 votes

How to invest with broker that will still be around in 40 years?

In Europe (given you say you're investing Euros), you should check the brokers' information on "investor protection". You should expect to see at least some mention of "segregated accounts" where ...
timday's user avatar
  • 4,002
6 votes
Accepted

Why didn't a margin call prevent me from losing more than my initial investment when buying on margin?

Buying on margin refers to buying of securities with cash borrowed from a broker with securities acting as collateral, covering a portion of the risk of the position. This use of margin magnifies the ...
Bob Baerker's user avatar
  • 76.8k
5 votes
Accepted

How to check I own a stock not involving a broker

Is there a way to make sure the stocks I bought are really mine using some 3rd party service or governmental authority and not involving the broker which firm I used to buy shares? At least on a day-...
TripeHound's user avatar
  • 9,170
5 votes
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How to invest with broker that will still be around in 40 years?

There's no 100% guarantees in life, but if you work with a company that has already been around for a number of years you can feel comfortable that they know the laws and follow them. The risk ...
kweinert's user avatar
  • 547
5 votes
Accepted

Where do online stock brokers get their real-time data from?

Generally Google gets their data, directly from the exchanges (Nasdaq, NYSE). This is really expensive -- tens of thousands of dollars a month just for the license from the exchange, and lots of ...
Michael's user avatar
  • 10.2k
5 votes

Exercising an option without paying for the underlying

You may want to Sell part of the number of contracts ( say 18 out of 20) and use that proceed along with 10K that you have. So later 2 options will be exercised. Also you said 200 * 300 = $600,000 ...
Raj's user avatar
  • 3,492
5 votes

What do "unsettled funds" mean?

You sold your ETF shares so the transaction is complete. Poof! Your shares are gone. Equities have a T+2 settlement date. Since it's a Cash Account, that means that the proceeds from your sale ...
Bob Baerker's user avatar
  • 76.8k
5 votes

When I send money to fund my account, what obliges a broker to put it in my account?

The Securities Exchange Act of 1934 regulates the behavior of US brokers. It includes standards of conduct and financial rules that broker-dealers must follow. In addition, the Financial Industry ...
Bob Baerker's user avatar
  • 76.8k
4 votes
Accepted

U.S. sanctions against citizens from countries under U.S. sanctions

Are most big US based financial institutions and banks in such a close relationship with USCIS (United States Citizenship And Immigration Services) so they can easily request the information about ...
TTT's user avatar
  • 47.2k
4 votes
Accepted

Does Robinhood calculate fees and taxes over the total gain/loss or per-transaction?

I don't see a tag for United States, so I'm having to assume this is US taxes. It doesn't matter what app you use, IRS trades are all calculated the same. First, you have to report each trade on a ...
user1442498's user avatar
4 votes
Accepted

How do I pick the right company for investing services?

Traditional brokers There are tons of players in this market, especially in USA. You have traditional brokers, brokers tied to your bank and a bunch of startups. The easiest is probably a broker tied ...
brt's user avatar
  • 1,256
4 votes

How to Choose Broker

Lower fees are always better, everything else equal. A lower fee makes your transaction overall a better deal, all else equal. Other transactions costs (like the SEC fee on sales) are mostly the same ...
farnsy's user avatar
  • 15.1k
4 votes

Are there any stockbrokers without a flat fee in their transaction costs? If not, why not?

If not, why not? What about this - because they do work. And the work is independent of how much moeny is in use. I.e. ONE order is ONE order, whether the number is 100 or 10000, still one order. ...
TomTom's user avatar
  • 11.5k
4 votes

Is my cash safe with Robinhood banking?

Obviously the news has fleshed out a little bit but it might be worth simply examining things from a high level. When you send $100 to your bank, it goes in your bank's balance sheet and the bank ...
quid's user avatar
  • 49k
4 votes
Accepted

When I send money to fund my account, what obliges a broker to put it in my account?

Accounting books is what makes that impossible. Any financial institution must keep accounting books rigorously to GAAP standards. If they accept your money into their account, then they must make a ...
Harper - Reinstate Monica's user avatar
4 votes

Is my investment safe if the broker/bank I'm using goes into insolvency?

Brokerages can always fail. MF Global was enormous and the CEO used clients funds — in segregated accounts to cover bad gambles (in Euro bonds default swaps I believe). USA investors had to wait for ...
Ian S's user avatar
  • 39
4 votes

Is it possible to invest on stocks/cryptos with having no Social Security Number in US?

US brokerages will require a tax id since that's necessary to properly report your earnings. You can issue an ITIN if you're not eligible for SSN, see form W7 and its instructions.
littleadv's user avatar
  • 177k
3 votes
Accepted

Selling Covered Calls, will online broker sell shares automatically?

Equity options are American style so the owner of a call has the right to exercise it at any time. If the stock rises significantly above $110, you may be assigned early and your shares will be sold. ...
Bob Baerker's user avatar
  • 76.8k
3 votes

What are the tax filing implications of ACATS brokerage transfer?

Your old firm will report market transactions if any on the 1099 and issue you 1099-B statement separately. New firm will be not liable to report transactions from the old firm. You should wait for ...
Abs's user avatar
  • 152
3 votes

Can There Be Partial Trade Fill Percentage?

I place a trade, a limit order on a thinly traded stock. I want to buy 1000 shares at $10. The current price is $10.50. Someone places a market order for 500 shares. Another trader has a limit order ...
JTP - Apologise to Monica's user avatar
3 votes

Option Trading / Demo Account

How would this trade behave IRL? I don't know how the simulation handles limit orders and bid/ask spreads to know it's feasible, but buying at 4.04 when the current ask is 8.00 seems unlikely. That ...
D Stanley's user avatar
  • 137k
3 votes
Accepted

Option Trading / Demo Account

In real life, you'd see spreads like AMZN 04/13/2017 910.00 C 4.90 +1.67 Bid: 4.75 Ask: 5.20 (with AMZN @ $897 right now) and the fill you'd get on the buy side would be closer to the ask. i.e. I'd ...
JTP - Apologise to Monica's user avatar
3 votes

Is there's a regulator or redressal mechanism for Broker Firms

Brokers are regulated by Securities and Exchange Board of India. Please read the FAQ on what types of complaints can be raised. The website for registering the complaints is SCORE. Alternatively you ...
Dheer's user avatar
  • 57.1k

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