diff --git a/Managing-Wealth/2021-04-11-The-Broker-Preparation-Guide.md b/Managing-Wealth/2021-04-11-The-Broker-Preparation-Guide.md new file mode 100644 index 0000000..fc28471 --- /dev/null +++ b/Managing-Wealth/2021-04-11-The-Broker-Preparation-Guide.md @@ -0,0 +1,91 @@ +The Broker Preparation Guide +============================ + +| Author | Source | +| :-------------: |:-------------:| +| [u/socrates6210](https://www.reddit.com/user/socrates6210/) | [Reddit](https://www.reddit.com/r/Superstonk/comments/mowzjk/the_broker_preparation_guide/?utm_medium=android_app&utm_source=share) | + +--- + + +[DD 👨‍🔬](https://www.reddit.com/r/Superstonk/search?q=flair_name%3A%22DD%20%F0%9F%91%A8%E2%80%8D%F0%9F%94%AC%22&restrict_sr=1) + +[![r/Superstonk - The Broker Preparation Guide](https://preview.redd.it/glaygp8cfls61.jpg?width=612&format=pjpg&auto=webp&s=d3af7f72c3be06af8b4a2076b44ed083be172e6a)](https://preview.redd.it/glaygp8cfls61.jpg?width=612&format=pjpg&auto=webp&s=d3af7f72c3be06af8b4a2076b44ed083be172e6a) + +Following my last post titled [The MOASS Preparation Guide](https://www.reddit.com/r/Superstonk/comments/mm5qle/the_moass_preparation_guide/) I noticed there was a lot of questions around which broker to use. I have taken the time to thrawl through the internet and find out the important questions about popular brokers. + +Here are the things that you need to be cautious of: + +- Did they block trading during the January mini-squeeze? + + - No saying if they will or wont do it again, just some transparency on what to expect should there be a lot of price action again. + +- Who is their clearing firm? + + - Apex Clearing seems to be at the centre of most of the buy restrictions in January. However, they didn't restrict selling. + +- Do they lend your shares? + + - Make sure that you check and opt out of the share lending program of your broker. + +- Do they use CFDs? + + - If you buy a [Contract-for-difference](https://www.investopedia.com/articles/stocks/09/trade-a-cfd.asp) you are not buying the actual stock, and hold no rights as a shareholder. + +What should you do with this information? Not financial advise, but: + +- If they are under Apex clearing i wouldn't wait until D-Day to start FOMO buying + +- If they only offer CFD, then i would be buying shares on a different platform (diversify brokers) + +- If they lend your shares i would contact them immediately to opt out of share lending, and switch from a margin to a cash account if possible. + +*using a phone? swipe left to see full table -->* + +| Broker | Broker Blocked buy (Jan) | Broker Blocked Sell (Jan) | Clearing House | CH Blocked Buy (Jan) | CH Blocked Sell (Jan) | Lends Shares | Is CFD? | Comments | +| --- | --- | --- | --- | --- | --- | --- | --- | --- | +| Ally | Yes | No | Apex Clearing | Yes | No | yes | No | You need to make a call to Ally to unenroll, customer service reported to be unresponsive | +| BMO | No | No | The Clearing House Payments Company | No | No | yes | No |  they can loan your shares but only if you had a negative margin balance | +| Capital.com | No | No | | No | No | No | Yes | | +| Citibank | No | No | ? | No | No | ? | ? | | +| Degiro | No | No | ? | No | No | No | No | They limit sell orders at +20% of market price, Lending only not enabled on custody account | +| Disnat | No | No | ? | No | No | ? | ? | | +| E*Trade | Yes | No | E*TRADE Clearing LLC | No | No | Yes | No | Will loan your shares on a margin account. | +| Etoro | Yes | No | ? | No | No | No | Only with leverage/shorts | Added a sneaky stop loss that closed many peoples positions, faced convenient outages | +| Fidelity | No | No | National Financial Services, LLC | No | No | No | No | | +| First Trade | Yes | No | Apex Clearing | Yes | No | Yes (assumed) | ? | | +| Freetrade | Yes | Yes | Barclays (unconfirmed) | yes | Yes | No | No | Prevents trading of US Stock | +| FutureAdvisor | ? | ? | National Financial Services, LLC | Unknown | Unknown | No (assumed) | No | Owned by BlackRock | +| Hargreaves lansdown | Yes | ? | | Unknown | Unknown | No | No | Cut off buying and supposedly prevented limit orders during the January. | +| HSBC Invest Direct | No | No | | No | No | Yes | No | Loans shares on margin account | +| IG Brokers | Yes | No | Euroclear | Unknown | Unknown | No | Yes | Assumed that it doesn't lend shares. | +| Interactive Brokers | Yes | No | Self-Clearing | Yes | No | Yes | No | increased margin requirements, Blocked clearing for T212, Lend your shares under the Stock Yield Enhancement Program | +| M1 Finance | Yes | No | Apex Clearing | Yes | No | Yes | No | email  to opt out of share loaning. | +| Merrill Edge/Lynch | Yes | No | Self-Clearing | Yes | No | Yes | No | Contact customer service to check if you're opted in | +| Nordnet | No | No | Euronext | No | No | Yes | No | If you have a "investment account Zero / IKZ", you have to OPT-OUT | +| Plus500 | No | No | ? | No | No | No | Yes | No longer lists GME to buy, CFD Only | +| Public.com | Yes | No | Apex Clearing | Yes | No | yes | ? | fully paid securities lending turn on by default, need to contact customer service. | +| Qtrade | No | No | ? | No | No | No | Yes | Set marginrequirements to 100%, Set 1500 sell limit | +| Questrade | No | No | self-clearing | No | No | No | No | Need margin account for underlying asset, but they add your shares to the lending pool. | +| RBC | No | No | RBC Clearing & Custody | No | No | yes | No | access to RBC Direct Investing had been temporarily unavailable, according to [u/youngpenrose](https://www.reddit.com/u/youngpenrose/) they lend shares. | +| Revolut | Yes | No | DriveWealth LCC | Yes | No | No | No | Blames DriveWealth LCC | +| RobinHood | Yes | No | Clearing by Robinhood  | Yes | No | Yes | No | Need to change to cash account, DON'T USE ROBINHOOD | +| Schwab | No | No | Charles Schwab Clearing Services | No | No | Yes | No | Margin Requirements were increased, need to opt out of share lending program. | +| SoFi Invest | No | No | Apex Clearing | No | No | Yes | Yes | | +| Stake | Yes | No | DriveWealth | Yes | No | ? | No | Blamed DriveWealth, said restrictions not their decision; make sure you opt out of lending. | +| Stash | Yes | No | Apex Clearing | Yes | No | Yes | ? | Make sure to opt out of lending. | +| TastyWorks | Yes | No | Apex Clearing | yes | No | Yes | No | Need to fill out form to request no lending of shares. | +| TD Armitrade | Yes (for margin) | No | TD Ameritrade Clearing, Inc (self-clearing) | No | No | No | Yes | Didn't restrict the purchase of stocks with cash. | +| Trade Republic | Yes | No | HSBC Trinkaus & Burkhardt AG | Unknown | Unknown | Yes | ? | [u/SWFninjatomm](https://www.reddit.com/u/SWFninjatomm/) - "sell Limitation of $999999 per Trade " | +| Trading212 Invest | Yes | Yes | Interactive Brokers | yes | No | Yes | No | Blames Interactive Brokers for Trade Execution Delay; Can't opt out of lending on Invest. | +| Vanguard | No | No | Vanguard Brokerage Services | No | No | No | No | | +| Wealth Simple | No | No | Apex Clearing | Yes | No | No | No | | +| WeBull | Yes | No | Apex Clearing | Yes | No | Yes | Yes | Can opt out in your settings for share lending. | +| Wells Fargo | No | No | Wells Fargo Clearing Services, LLC | No | No | ? | Yes | | +| You Invest (JP/Chase) | No | No | J.P. Morgan Clearing Corp (assumed) | No | No | No | No | | + +Note: this list may not be 100% accurate, this was all the information i could find online. Some information I couldn't find easily. If there is any additional brokers you want to see on here, or you see any misinformation please tag me and I will update. this isn't financial advice, do what ever you like with this information. + +TLDR: Check your broker to make sure you don't get left behind when the MOASS happens 🚀Also, if you haven't already, i suggest you [make sure you are prepared](https://www.reddit.com/r/Superstonk/comments/mm5qle/the_moass_preparation_guide/) + +-socrates ( ͡° ͜ʖ ͡°)