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Ask HN: Can I trust brokers with my stocks?

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Re: Ask HN: Can I trust brokers with my stocks?

#61

Post by mjul »

simonbarker87 wrote: post #16

I’m not a lawyer but own a number of shares in a number of companies through IG in the UK. Since you don’t really own the shares, the broker (in my case IG) hold them on my behalf in a ledger that simply allocates the shares to me then I imagine they can do what they like with the shares. So long as the money is there when you want to liquidate it then it’s irrelevant to some degree. In the UK the value of the shares…

In EU there are strict financial regulations about custody. Brokers are not allowed to do anything to your shares without your instruction. So, for example, if the broker goes bankrupt, the custody account with your shares is still there for you.

I assume it is still the same in the UK post-brexit, but I have not looked it up.

Re: Ask HN: Can I trust brokers with my stocks?

#62

Post by throwitawayfam »

seaman1921 wrote: post #24
peterkouvaris wrote: post #23

Earlier quoted context omitted.

Seconding IBKR. I've always viewed them as the most ethical broker and also the one with the highest skill ceiling. They do not sell order flow, they offer programs like the above so you can earn interest when they loan your shares out to other individuals or institutions, and let you get very granular about things like your exchange routing.

You should watch their CEO Thomas Peterffy's interview during the gamestop situation - he basically said "shorting is illegal" and a lot of other such nonsense .. completely lost respect for IB after that, even though I still maintain an account. https://streamable.com/ycdec9

Agree. If the OP's concern is the Gamestop fiasco, then IB is just as bad as Robinhood.

Re: Ask HN: Can I trust brokers with my stocks?

#63

Post by lostmsu »

throwitawayfam wrote: post #62
seaman1921 wrote: post #24

Earlier quoted context omitted.

You should watch their CEO Thomas Peterffy's interview during the gamestop situation - he basically said "shorting is illegal" and a lot of other such nonsense .. completely lost respect for IB after that, even though I still maintain an account. https://streamable.com/ycdec9

Agree. If the OP's concern is the Gamestop fiasco, then IB is just as bad as Robinhood.

AFAIK, IB restricted only option trading, while RH also restricted buying actual stock.

Re: Ask HN: Can I trust brokers with my stocks?

#64

Post by seaman1921 »

seaman1921 wrote: post #24
peterkouvaris wrote: post #23

Earlier quoted context omitted.

Seconding IBKR. I've always viewed them as the most ethical broker and also the one with the highest skill ceiling. They do not sell order flow, they offer programs like the above so you can earn interest when they loan your shares out to other individuals or institutions, and let you get very granular about things like your exchange routing.

You should watch their CEO Thomas Peterffy's interview during the gamestop situation - he basically said "shorting is illegal" and a lot of other such nonsense .. completely lost respect for IB after that, even though I still maintain an account. https://streamable.com/ycdec9

correction - i meant he said "short squeezing is illegal" which is why they stopped the trade. For those asking for timestamp, he says that around 3:30

Re: Ask HN: Can I trust brokers with my stocks?

#65

Post by throwitawayfam »

lostmsu wrote: post #63
throwitawayfam wrote: post #62

Earlier quoted context omitted.

Agree. If the OP's concern is the Gamestop fiasco, then IB is just as bad as Robinhood.

AFAIK, IB restricted only option trading, while RH also restricted buying actual stock.

My mistake, you're absolutely correct.

Re: Ask HN: Can I trust brokers with my stocks?

#66

Post by shinryuu »

jeofken wrote: post #9
cjg_ wrote: post #3

Avanza supports loaning out stocks depending on the account type, it is only available on Kapitalförsäkring because otherwise the stock is in your name (on Depå / ISK). Also you get paid a premium if they loan your stocks. It is described on https://www.avanza.se/konton-lan-prislista/konton/kapitalfor... and includes a section about the risk.

Can you use ISK when living outside of Sweden, and still enjoy the low tax and no capital gains tax?

No, I'm a swede living in Germany
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