Hi Friends,
Brokerage houses have been in the new a lot lately, mostly due to some restricting trading in some securities. Similar to crypto, when you buy shares in a company, you technically don’t own them as they are in your broker’s name, and your broker then tells you how many of their shares are attributable to your account - therefore, there is always the risk that the brokerage firm could fail (there is SIPC insurance in place in many cases though).
Due to this, I stick to big brokerages these days, mostly TD Ameritrade:
The fact that brokers have eliminated commissions is great, though I question whether we are always getting the best prices on our trades (though it is still better than a commission fee in a lot of cases).
I once used a firm named Zecco for trading - they went out of business but I had sufficient notice to transfer my shares to another firm before they went under. Hopefully Robinhood and these new brokerage houses popping up don’t become a Mt. Gox sort of disaster.
Which brokerage firm do you prefer to use?
Thanks for coming by,
Brian
