Brokereviews Answers
Brokereviews helps stock market and cryptocurrency investors find answers to their questions and the information they need to make smart trading decisions.
Recent Answers
Which Brokers Have Instant Withdrawal?
How do you define instant withdrawal? If you are seeking immediate withdrawals, it will be challenging to find one in North America. Unfortunately, the short answer is that there are no U.S. or Canadian independent trading platforms that offer instant withdrawals. Is There Another Solution? If you want to get your money instantly, you will need to sign up for your primary bank's investment hub. Because your bank account and your brokerage account are synchronized, you can transfer back and forth without any headaches or wait times. That said, if you are using something like Robinhood, Interactive Brokers, or 212 Trading, it will take either several hours or a couple of business days to withdraw your money. A quick search will show that a company called Zerodha, an India-based stock trading platform maintains an instant withdrawal feature. So far, nothing in the U.S. or Canada. Why Is There No Instant Withdrawal? You might be wondering why there is no instant withdrawal option. For one thing, these companies do not want to experience a run on these platforms. Whether it is a huge rally in a stock (think: GameStop) or rumors that the trading hub is shutting down, they do not want a massive outflow of money. That said, you are beginning to see a growing number of outlets, such as Coinbase, allowing their users to withdraw a small amount, typically less than $500, in a much faster period. Put simply, you might need to be patient.
Asked 2 years ago
Can I Have More Than One Brokerage Account on TD Ameritrade?
Yes. You can have multiple accounts at TD Ameritrade. You can link them to access all accounts with a single username and password. You only need to visit Client Services, click on My Profile, and hit Link Accounts. It is important to note that some account types might be restricted from linking. If this occurs, you need to speak with customer service. That said, why should you have multiple accounts? Let's explore the benefits: The Benefits of Having Multiple Accounts Experiment with Unique Strategies First, you can test our various trading strategies. For example, one brokerage account can be used for long-term investments that are only used to accumulate dividends and add to your positions. The other one can be exploited for day-trading efforts or risky bets on hot stocks (think AMC or GameStop). Margin Costs This applies to multiple brokerage accounts in general, but you could enjoy lower margin costs. Trading on margin is essentially a loan you take against the equity on your brokerage account. This allows you to generate a greater stake in a stock when you do not possess enough capital. Tax Purposes With different brokerage accounts, you can spread your tax obligations or utilize various models that minimize your tax penalties, such as a Roth IRA. One Broker or Multiple? In the end, should you stay with one brokerage or multiple? It depends on what type of investor you are. If you have a lot of money at your disposal, it is best to spread it across different firms. However, if you are someone who not as active as you would like, perhaps it would be prudent to stay with one organization so you do not forget about the other account and its security features.
Asked 2 years ago
Which Wallet Is Best: Online or Cold Wallet?
Let's differentiate the two. An online wallet (hot) is connected to the internet. A cold wallet account is stored on an offline means. Now, how do you determine which is safer for your needs? Safety is a Priority Since the online wallet is connected to the internet, your digital assets are vulnerable to online attacks. The crypto industry is regularly prone to cyber infiltration, so it is a common threat. Because your cold wallet is not connected to the online world, you are far more secure. The crypto funds are sitting in a wallet unable to be accessed by anybody. Does Convenience Matter? A hot wallet makes digital spending and transactions a lot faster and more efficient because it is already connected to the internet. Therefore, you can buy, sell, spend, and trade your crypto. A cold wallet, on the other hand, is not as convenient since you have to go through the process of reconnecting. What is the Best Option? Industry experts recommend that traders and general crypto holders use cold wallets to store their bitcoins, litecoins, dogecoins, and any other type of virtual token. You will have peace of mind that your digital currency will be there when you wake up. And, who knows? Perhaps it will have increased in value when you open your eyes and log in!
Asked 2 years ago
What Is a Subscription Receipt and the Benefits Thereof?
Below we take you through all you need to know about subscription receipts. The Primer In finance, a subscription receipt, also known as a subscription right, is when the right of currency stockholders in a company retains an equal percentage of ownership by subscribing to new stock issuances at or below prices dictated by the market. Overall, a subscription receipt (anti-dilution right or preemptive right) will raise the number of shares in the equities arena. This leads to dilution of the share's value. A Case Study For example, let's say that Acme International executed an offering by issuing one million common shares. The business put forward one right for each common share. Shareholders were allowed to buy common shares by exchanging two rights, and $1.5 for every share wanted. As a result of this, the offering was oversubscribed. The Pros and Cons The primary advantage is that current shareholders can acquire more shares at a discounted price. If you are a long-term investor, you can build your positions in the business. The main drawback to subscription receipts is that your ownership will be diluted because the firm is raising capital by making a secondary offering. Also, stocks will generally see a selloff when a company announces a secondary offering. Pay Attention to What Happens at the Company Although financial analysts say that it is best to "set it and forget it" when investing, it is still important to pay attention to what is going on with your stock from time to time. Whether it is monitoring company news or reading through notices you receive in the mail, keep tabs on what is going on with the stock.
Asked 2 years ago
Should I Open a Second Bank Account Exclusively for Online Trading Security?
It is always a good idea to have a second bank account, whether it is because you have a decent amount of money or problems with digital security. Even if it is one of the chief financial institutions that have invested vast sums of money in their online infrastructure, anything can happen. It does not need to be exclusively for online trading security. Opening Accounts on Trading Platforms That said, you might not need to open a second bank account for online trading if you do not want to go through the hassle. Instead, you can always sign up for a trading platform for the sole purpose of buying and selling stocks, ETFs, or cryptocurrencies. You do not need to use your primary bank for your investing needs, although this might be a good idea for long-term investing objectives. Robinhood, Interactive Brokers, WealthSimple, or the myriad of other online trading platforms, allow you to take advantage of zero-commission trading. All you need to do is deposit funds from your main bank account to these outlets. These entities have bare-bones trading or consist of the more advanced features, such as margin or options. Opening a Second Bank Account Ultimately, open a second bank account regardless of your trading endeavors. This account could be used similarly to the old paper envelope system: you have your main account for your bills, paycheck deposits, and investments and a second account for saving for your child's tuition, a down payment on a house, and investing in stocks with the cash you can afford to lose. Also, there is a $250,000 cap from the FDIC. A second account can ensure all of your capital is insured against bank failures!
Asked 2 years ago
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