| You need to find a stockbroker,or change | | | | same policy?..wrong!(more about that later). |
| brokers...but how do you know if your getting a good | | | | This nightmare case would have you making forced |
| deal?.Sure... the salesman said it's a great deal and you | | | | liquidations as your freshman trade,further delaying |
| would get 10 free trades...but what's the | | | | access to your account."welcome to &^$# |
| catch?.Guess what? The salesman is paid to sign up | | | | trade!!".How do I know this?.you guessed it ;it |
| new accounts not to help you.I can tell you from | | | | happened to me and it cost me $100,000 in losses,in |
| personal experience...they "bend the truth"as much as | | | | that 12 day period.Sure you can sue..but my |
| any used car salesman,and so much more money is | | | | advice?....as much as you hate to pay the |
| involved !!. | | | | commissions... or face the tax consequences.liquidate |
| It pays to make sure you understand what you are | | | | all open positions at the broker you are leaving,and |
| getting into.you can save yourself from a horror | | | | either wire the cash or express mail the check to the |
| show later.There is no such thing as a free lunch... so | | | | new broker. you also save the service fees that |
| they must make up the money they don't get on 7$ | | | | many brokers charge for acat transfers by leaving |
| trades somewhere else.Many rules buried in the fine | | | | with cash.and starting with cash.If you have spare |
| print are as convoluted and devious as the worst cell | | | | funds in the bank and are concerned about a position |
| phone plan...and can cost you just as much!. | | | | in the old account moving for/against you ,you could |
| But how can changing stock brokers can be | | | | open an offsetting position by setting up the new |
| hazardous to you financial health? | | | | account in advance of your move, and opening the |
| Learn the pitfalls; do you know what to look for?. | | | | offsetting position BEFORE liquidating the old account |
| Changing stock brokers can be hazardous to you | | | | .Do it with cash and you will have one less headache! |
| financial health!!!. | | | | "A man's got to know his limitations" |
| Let's start with this...it's not all that fun or easy to | | | | You 70's movie buffs will know where that line came |
| change brokers !;unless you have only mutual funds | | | | from!.What's that got to do with stockbrokers?.The |
| or buy and hold positions.If you are a trader or hold | | | | first step in selecting a broker you will be happy with |
| option positions,be very careful before you move | | | | is to be realistic about what you plan on doing in the |
| accounts that you know all the terms before you | | | | account .This is because the brokers do vary as to |
| move.while it may seem that if you get into a bad | | | | the com commissions,margin policies,and fees they |
| deal with a broker you can just relocate to a new | | | | charge.By thoughtfully,and REALISTICALLY thinking |
| broker with the click of a mouse;in practice there is | | | | about what type of activity will occur in the account |
| more to it.The system for transferring open stock or | | | | you can find a broker who will suit your investment |
| option positions is called "ACAT". This is sometimes | | | | activity. |
| represented by salespeople as taking"a few days". | | | | Don't go with a broker with minimum activity levels if |
| This seems to be like when the garage says your car | | | | you are really a buy and hold customer..the fees will |
| will be done by noon..plan on 6;30 or maybe | | | | add up.If you tend to run margin balances,shop for |
| tomorow.In my experience the quickest completion is | | | | the lowest margin loan rate..they vary a lot!If you |
| 10 days.but this will vary by the number of positions | | | | trade options be very careful of the fine print when |
| in the account,and the brokers back office or | | | | comparing commissions(more on this later) |
| "clearing broker"(some sub this work out..some have | | | | Be aware of the brokers limitations.This is the truly |
| their own)they come into the new broker in dribbles | | | | hard part,and what I hope to shed light on in this |
| and drabs over the time period,and the new broker | | | | website.Most brokers would rather you did not know |
| must reconcile the balances /positions with the new | | | | this stuff,and they have a huge incentive not to tell |
| broker. | | | | you,why?because there mean?...No! ,the brokerage |
| During this time period YOU WILL BE UNABLE TO | | | | business is intensely competitive.I saw where bank of |
| BUY OR SELL ANY OPEN POSITIONS. | | | | America is offering free trades.Humanitarians?,you |
| They are in a kind of limbo where they cannot be | | | | know there is a catch! |
| traded by you at either firm.Is this very | | | | Apparently the competition to loss lead;Leads the |
| dangerous?you bet you life..what if market drops 100 | | | | brokers to come up with hidden fees that(hopefully) |
| points?ever heard of Murphys law?.what if stock | | | | will not be noticed.I believe they frequently are not |
| goes up 10 points but you can't sell,then goes back | | | | noticed for two main reasons.One; people are |
| down the day before position are cleared to new | | | | intimidated by financial jargon,or are bored by |
| broker?.well anyway.. you had time to practice kicking | | | | it.Two;brokers have every incentive to...let's just say |
| yourself!! | | | | accentuate the positive and forget to mention the |
| Here is another complication that can arise in this | | | | not so good stuffNot to worry,the detective is here |
| situation.what if the positions arrive from the prior | | | | to help point you to the trouble spots!!!.please stick |
| broker and when the margin department at the new | | | | around and visit page two ,where some of the |
| broker calculates you account balances they issue a | | | | places where the bones are buried lurk.I will show |
| margin call because they have a different margin | | | | you where to look. |
| policy.Oh you were told that all brokers have the | | | | |