Stockbrokers & Trading Accounts

[helios]

Has anyone withdraw fund from TOS or OptionXpress before?

What would be the currency Slipage and bank charges?

I think discount brokerage would issue USD cheque via bank in the states. This would be traded as foreign cheque in Sg. The processing time is a least more than a week and probably some commission involved?

Anyone who is full time trader using discount brokerage? How do you manage the fund withdrawal to minimise cost?

Yo. I am using OptionXpress. Cheque is issued in USD via JPM US account - yes, it's a foreign cheque and requires additional $20 (clearing charges) to clear it with local banks. This process typically takes 3 weeks. I tried to ask why is this so, but the reply given by the local banks was their internal SOP require them to courier a duplication copy of the cheque to the JPM and re-verify the issual. Very slow and inefficient. So, do the withdrawal when you have trading break ... ie. not trading for a period of time, etc. Does it make sense ?

BTW, OptionXpress will take up to 2 weeks to mail you the cheque ... !

[profittaker]

Yo, thanks. Withdrawal during trading breaks make sense!

Other than delay, bank also charge high currency spread and the spread difference between banks is quite substantial.

[profittaker]

This sounds scary.

We are a group of investors and traders whose brokerage accounts were improperly liquidated or closed by thinkorswim and TD Ameritrade. We are exploring the possibility of a class action lawsuit for violations of law and securities rules by these brokers.

Read more: http://cheatedinvestor.com/

[winston]

"My broker told me to buy this stock for my old age. It worked wonderfully. Within a week I was an old man."

- Eddie Cantor

[winston]

Three Criteria to Use to Rate Your Broker

No. 1: Does he give you advice that is easy to understand?
No. 2: Does he understand and care about your concerns and needs?
No. 3: Does he make you feel like you are in charge?

Source: Oxford Club

[winston]

Brokers using this controversial practice are ‘skimming rent, getting rich’: Michael Lewis

by Max Zahn with Andy Serwer

When accepting payment for order flow, brokers accept smaller price improvement for trades in exchange for higher payments from the market makers that fulfill the trades — a practice that can amount to a small surcharge for traders, effectively nullifying the commission-free trading promised by some brokers.

Source: Yahoo Finance

https://finance.yahoo.com/news/brokers- ... 32760.html

[winston]

Payment for Order Flow (PFOF)

By THERESA W. CAREY

Payment for order flow (PFOF) is the compensation a broker receives for routing trades for trade execution.

“Payment for order flow is a method of transferring some of the trading profits from market making to the brokers that route customer orders to specialists for execution," said the SEC in a study.

PFOF has been criticized by some as creating unfair or opportunistic conditions at the expense of retail traders and investors

Source: Investopedia

https://www.investopedia.com/terms/p/pa ... erflow.asp