Account Broker Career Guide and Counseling

Question: Does opening a margin account with my broker affect my FICO credit score? Wondering what kind of inquiry might be posted to my credit report and how this will affect my score. I figure since a margin account is based on my assets the broker already holds, they don't need to check my credit as thier risk is covered by the value of my stock, mutual funds, and cash. Thanks.

Answer: you figure right!!!

Question: How do I close my account with Gun Broker? They keep charging me each month to be a member of Gun Broker and I don't want to be a member anymore and want to close my account with them but can not find on their website a way to do that and I need help.

Answer: write to the address on the statement, or call a customer service number on the statement. Put your wishes in writing, stating that you wish to close your account effective immediately and to notify you in writing that the account has been closed. I went to the site and the CONTACT US link doesn't provide any real contact information. I'm not a member so maybe you can get further into the site than I can. Good luck!

Question: Advice for joint broker account with two people residing in different countries? My friend and me would like to open a joint stockbroker account that is predominantly in euros. He is German and I am English so we are in two different countries of residence. I am wondering if you know if there is any bank/online stockbroker that matches our need? We would like an account with no monthly/quarterly or annual charge and that we'd be able to trade in the US, UK and perhaps European stock exchanges.

Answer: If you get no good answers: Form a partnership with you both as officers. The parnership owns the stock account. The partnership agreement lays out how you will divide the money and all other particulars - you should probably have one anyway. Sign the paperwork allowing both officers permission to trade.

Question: What is the difference between a broker or brokerage account? I want to buy and manage my stocks my own. But this is the first time ever done this. So can some help explain to me the difference between broker or brokerage account? Also, if possible guide me to the right direction on buying my first stocks.

Answer: If you don't know the difference between a broker (the person who will sell your stocks and mutual funds for you) and a brokerage account (the type of account you need in order to buys stocks), then you should not be buying and selling stocks on your own. You need to be educated before dipping your money into the market on your own. So many people think it is so easy to make money in the market and that they can do it on their own instead of paying someone who does that for a living to give them advice. When you are sick do you assume you can cure yourself on your own or do you go to the Doctor's? If you choose to invest on your own, make sure you do your research first. Good luck

Question: Does switching broker remove account restriction? I'm new to trading stocks, and have just found out the hard way that making four day trades in five days put a restriction on my account. Live and learn. It removed the margin, and doesn't let me trade again until the last trade clears. If I open an account at another online broker, will the restriction transfer?

Answer: The restriction implemented on your account is by the broker, it doesnt go to with you to the other broker. But the problem is if you make a four round trades in five days the new broker will restrict your account.

Question: I used sharebuilders can I use another broker account like etrade at the same time? The reason is that I wanted to purchase this stock last week (igpaz) but could not through sharebuilder and it went from .01 to .13 cents today and I'm pissed I don't mess with penny stock but I just had a good feeling about that one and my hunch was right.

Answer: yup, thats typical for sharebuilder!! i started with zecco.....still use it, still very happy. only ones with no fee for stock trades, and no minumums. it took me some time to see that most of my gains were lost to the fees i paid to actually buy stock and sell it....all the others will charge you fees for trading, but compare and see for yourself! http://friends.zecco.com/r/a7a2877caab8102b8555

Question: Does Etrade have any fee for transferring out your account directly to another broker? Does Etrade have any fee for transferring out your account directly to another broker?

Answer: Yes $25 for partial transfers $60 for full transfers But some other brokers are willing to pick up those fees...

Question: Minimum deposit for an online broker. Does it have to stay in the account, or can you withdraw it? If I open an account with an online broker (Zecco) and pay the minimum deposit ($2,000), does your account have to stay above that $2,000 amount? Could I withdraw like $1500 to $2000 out after the account has been established? Also, if I am able to withdraw the funds, how hard is it, how much does it cost, and what is the process?

Answer: Read your account disclosures, because it can vary from brokerage firms.

Question: Demat account, broker services in bangalore? Hi, Let me knw about decent demat account, broker service provider in bangalore. Don't want to high cost ICICIdirect and all. What are the other options...? Thanks,

Answer: I suggest u to go for the geojit Financial services online trading product.... They offer the cheapest brokerages and a decent service...the product is also very good...most importantly there are no hidden charges apart from the account opening which is around 500 rupees and the Demat maintenance charges other than the brokerage...and the brokerage is also the least in the market... u can have a look at the product and the other details in their website..ill give u the link check it out... http://www.geojit.com/services/Brokerage.asp?index=2&a=4 i wish u a very happy investing....

Question: What happens to your money in a brokerage account if the broker goes bankrupt? With all of the big financial leaders either going bankrupt or being bought out, what exactly happens to your money if your broker goes bankrupt, since the money is not FDIC insured? And also if you know your broker is headed that direction, do you sell all your assets and move your money out?

Answer: The short answer.... I would. Your accounts are supposed to be insured up to 500k by the Securities Investors Protection Corporation (SIPC). Securities brokers are not supposed to commingle your funds with their operating funds (unlike banks). They are comparable to the FDIC, but unlike the FDIC, the SIPC does not guarantee against loss in value, or against theft and fraud. They just guarantee your securities if the firm become insolvent. And like the FDIC, if your firm goes bust, it may take some time to recover the securities from that insurer.

Question: What happens to the funds in a brokerage account when the Broker Bank collapses? At retail banks deposits are insured at a maximum of $100.000.How does it work at a Broker Bank?.....say if somebody has $1,000,000.00,what amount is preserved and what is lost?Also how long before one has access to the funds again?

Answer: Well, there's 2 types of insurance that most brokers work with: 1. A government-sponsored insurance scheme not unlike the FDIC 100K. BUT just like the 100K policy, if the government is low on funds they will probably not pay you the whole amount, but rather negotiate and settle at a lower amount (which is usually at least 40% of you deposit). 2. The vast majority (99%) of brokers carry additional insurance from a major insurer (usually Lloyd's), which protects your account for a large sum (mine's protected till $5 million).

Question: What is the difference between a roth IRA and a normal investment account by a broker? 1. In both cases I can invest only after tax money. 2. I can withdraw my money whenever I want in both cases. 3. I can only contribute $5,000 per year in the roth IRA while I can contribute how much I want with a normal investment account. So why would I choose to open a roth IRA instead of a normal investment account where I can invest how much I want?

Answer: Any growth experiened in a ROTH IRA account is not taxed. Nor is taxed when you withdraw the money. With a standard investment you will be taxed when you realize any profit by selling the investment. So take an example where you have a ROTH IRA and a standard investment. Both start at 10,000 and both grow by 10%, to 11,000. When you withdraw your IRA (assuming no penalties for ealry with drawal), you will get the full $11,000 When you withrdraw the investment you will have to pay taxes on the $1,000 of growth, so maybe you walk away with only $10,700. This difference could add up to a huge amount over the lifetime of a ROTH IRA

Question: Opening a trading account with a broker ? If you open an account with a broker to day trade - is it standard procedure for them to keep the copy of ' Power of attorney' ? And not give a copy to their client ?

Answer: If you mailed it to them, you should have made a copy before you mailed it. If you signed it in their office, did you ask them for a copy? Certainly you should have requested a copy of anything you signed.

Question: What is the difference betwen a Roth IRA and a regular portfolio account from a broker? What advantage does a Roth IRA have over a traditional portfolio account from a brokerage like Fidelity or Ameritrade, for instance?

Answer: First of all, IRA (Individual Retirement Account) is not a product, it is an account type. You can have almost any publicly traded assets in your IRA, just like you can have them in a regular brokerage accounrt. Roth IRA has a more favorable tax treatment compared to a regular brokerage account; although your contributions are not tax-deductible (as they are for a traditional IRA), there are no federal taxes that are payable on any returns from a Roth IRA, whether those returns are income or capital gains. Fidelity has a brief and relatively easy to read summary of differences between traditional and Roth IRAs (see link below).

Question: online broker with best savings account interest? I'm interested in an online broker and I've read through here that scottrade is, by far, the best online broker. The problem is that the savings account that scottrade offers yields 1% interest, while e-trade has a 5.05% savings account. Taking these points into account, are there any better online brokers? Thanks.

Answer: Schwab's online savings account, which you tie to your brokerage account, is currently offering 4.25%.

Question: I need good Broker account for online share/stock business in US and I am in UK must be cheaper and good? Online share/Stocks business Accounts which is cheaper in commission and more user friendly.

Answer: Scottrade. NO account maintenance, service, or inactivity fees. $7.00 online trading commission for stock over $1.00 a share. Tutorial and webcast available to customers. Excellent trading platforms (very user friendly). Excellent customer service (398 Branch offices nationwide). $500.00 minimum to open an account. If you do end up opening it with Scottrade, use this referral code: EJVR8926 You and I can get 3 FREE trades.