Brokerage Account

[austin316]

I currently use Scottrade and Zecco for my online trades and I was wondering what happens if either of these companies go out of business. How do I show that I still own shares of those stocks?

 

[SunnyD]

Originally posted by: austin316
I currently use Scottrade and Zecco for my online trades and I was wondering what happens if either of these companies go out of business. How do I show that I still own shares of those stocks?

I'm pretty sure they would have to send you the actual ownership issues. With that said though - given that they make their money on the fees for trading, how would they possibly ever go under?

 

[austin316]

Originally posted by: SunnyD

Originally posted by: austin316
I currently use Scottrade and Zecco for my online trades and I was wondering what happens if either of these companies go out of business. How do I show that I still own shares of those stocks?

I'm pretty sure they would have to send you the actual ownership issues. With that said though - given that they make their money on the fees for trading, how would they possibly ever go under?

I would assume that the cost of running the business is not sustainable on the $4.50 they charge per trade.

 

[darkxshade]

They wouldn't be able to go under completely... worst case scenario is they file for bankruptcy and someone buys them out at a discount so your account will probably be transferred to the new owners platform. In bankruptcy you sell off what you can to pay off debt. No matter what, someone is going to want the accounts, they won't just let them disappear, they are worth something.

 

[Miramonti]

Originally posted by: SunnyD

Originally posted by: austin316
I currently use Scottrade and Zecco for my online trades and I was wondering what happens if either of these companies go out of business. How do I show that I still own shares of those stocks?

I'm pretty sure they would have to send you the actual ownership issues. With that said though - given that they make their money on the fees for trading, how would they possibly ever go under?

Google etrade for more info, who's barely afloat. They were diversified into a lot of sh!t tho and are still paying the price.

 

[Lamont Burns]

FDIC?

 

[austin316]

Originally posted by: Lamont Burns
FDIC?

SIPC

so i'm good to go.

 

[woodie1]

In some cases your account would be turned over to another brokerage house.