16

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 ...


14

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 may be processed at one point in time, the "settlement" of the cash takes time and could end up reversed or delayed (such as for rule violations, investigation, ...


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 ...


11

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 favorable as the US domiciled ones, but I would do it anyway. Here are some that track the S&P 500: https://www.justetf.com/gb-en/find-etf.html?assetClass=...


10

No, this is not generally possible, as each security purchase is booked as a separate order => hence separate transaction. You can do this through purchasing of a fund, i.e.: purchasing one share of a ETF will get you a relative share of the ETF holdings, but the actual holdings are not up to you then.


9

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 period of time also skirt the SIPC rules on what's covered in the event of a collapse, Harbeck said. It may fall under the category of a loan because the brokerage ...


7

Yes, there are many banks/brokers/others that will let you rollover your 401(k) into an IRA including E-Trade. Investapedia has decent guide to get you started and look at the important question of whether to roll into a normal or roth IRA. Edit in response to comment: 401(k)'s (and rarely seen IRAs through your job) are restricted by the company's chosen ...


6

You will be hit every time, once every buy order and once every sell order. Commissions to the broker are paid every time they do something for you. This is true regardless if it is a security in which you are already invested. It is true regardless if you make or lose money. It is just as sure as death and taxes.


6

The answer, like many answers, is "it depends". Specifically, it depends on the broker, and the type of account you have with the broker. Most brokers will charge you once per transaction, so a commission on the buy, and a commission (and SEC fee in the US) on the sale. However, if you place a Good-til-Canceled (GTC) order, and it's partially filled one day, ...


6

You can open a self-directed IRA with most any online discount broker. Self-directed IRA is the answer to your question and that is the account type you need to ask different institutions about. Some will allow options trading as well and I have never had a problem with that in my own self-directed IRA


6

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 client's (pooled) holdings are kept separate from other assets. Ideally these would be held in in a separate nominee company so if the broker goes bust their ...


5

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 and it should be 2000 * 300 = $600,000


5

No you can't, as you would have to have a different order for each security. Usually the bigger the order the more the brokerage you would also pay.


5

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 telecom costs on top of that.


5

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 really isn't with them going bust. The customer is always an asset and another bank would be happy to take ownership of those assets. If that happens your assets ...


5

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 will be available for trading in two days. In a margin account, your broker would allow you to buy other securities immediately.


4

There is such a thing as a buy-write, which is buying a stock and writing a (covered) call simultaneously. But as far as I know brokers charge two commissions, one stock trade and one options trade so you're not going to save on commissions.


4

I would say it's a bit more complicated than that. Do you understand what a market maker does? An ECN (electronic communication network) is a virtual exchange that works with market makers. Using a rebate structure that works by paying for orders adding liquidity and charges a fee for removing liquidity. So liquidity is created by encouraging what are ...


4

The fees with trading CFDs are usually lower than standard share trading. There is usually no joining fee to join a broker and start trading with them, you must be talking about the minimum required to fund your account to trade with. What country are you in? Because if you are in the USA I believe CFD trading is not allowed there. Also there is no margin ...


4

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 across brokers and there is unlikely to be any difference in execution quality either. When comparing brokers be sure to consider the other issues: Account ...


4

This is dependent on the broker according to The Options Industry Council. Your broker will specify what they would do upon expiry (or hours before last trade) if you did not indicate your preference. Most likely they will conduct a probabilistic simulation to see whether exercising the contracts may result in margin deficit even after selling the ...


4

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 market traders? Yes. They must be in order to enforce the laws required by the sanctions. What online broker would you suggest that probably won't focus on ...


4

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 8949 and from that the totals go into a schedule D. Short term trades are stocks that you've kept exactly one year or less, long term trades are for 1 year + 1 ...


4

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-to-day basis, probably not. But that doesn't mean there aren't protections in place (at least in large parts of the world) to mitigate the risks. Nowadays, ...


4

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 issues an IOU for $100. Your bank then lends part of your $100 or does whatever with that money up to the regulatory limits of what it's allowed to do with that ...


3

Interactive Brokers advertises the percent of profitable forex accounts for its own customers and for competitors. They say they have 46.9% profitable accounts which is higher than the other brokers listed. It's hard to say exactly how this data was compiled- but I think the main takeaway is that if a broker actually advertises that most accounts lose money, ...


3

The $500 minimum is a policy of the ASX. As such any broker that offered a different policy would not be offering direct purchase of exchange traded shares. Note however that this policy applies only to the initial purchase. From the CMC FAQs: The ASX requires a minimum parcel of $500 to be traded if you don’t currently hold that particular security. ...


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