Question. How safe are online trading platforms

Static M.e.

Hi all,

(Just to clarify I'm very new to trading\investing its a hobby)

I just wanted to get peoples opinions on how safe are online trading platforms, not in relation to the security of the site per say but the money you have invested on the site.

What happens if I have €5,000 invested in Stock under a trading platform (TD Direct for instance) and then that platform goes bankrupt or for some reason is forced to close down? Is their any chance I will lose all my shares\money?

Should I be worried at all?

Thanks

Kristopherus

Static M.e. wrote: »

Hi all,

(Just to clarify I'm very new to trading\investing its a hobby)

I just wanted to get peoples opinions on how safe are online trading platforms, not in relation to the security of the site per say but the money you have invested on the site.

What happens if I have €5,000 invested in Stock under a trading platform (TD Direct for instance) and then that platform goes bankrupt or for some reason is forced to close down? Is their any chance I will lose all my shares\money?

Should I be worried at all?

Thanks

For a sum like €5000.00 you should be well covered. All brokers, online or bricks & morter, have to have bonds to cover those events.

Logo

Not sure how regulated the sector is now but http://www.finance-magazine.com/display_article.php?i=4372&pi=178 is worth a read.

I thought that we had learned lessons from the bank bailouts but pouring €53 million of state funds into one single Credit Union outlet has me thinking... (did we learn anything? Where were the annual financial reports or regulators?).

The analogy to mushroom-growing is probably nearer the truth when it comes to financial matters and the Irish taxpayer (keep them in the dark and feed them sh1t).

Cute Hoor

Static M.e. wrote: »

Hi all,

(Just to clarify I'm very new to trading\investing its a hobby)

I just wanted to get peoples opinions on how safe are online trading platforms, not in relation to the security of the site per say but the money you have invested on the site.

What happens if I have €5,000 invested in Stock under a trading platform (TD Direct for instance) and then that platform goes bankrupt or for some reason is forced to close down? Is their any chance I will lose all my shares\money?

Should I be worried at all?

Thanks

Good question, how safe is anything?

Here are a few 'guarantees' from a few trading websites, the TD Direct one isn't that clear, probably a little more digging required, but the others seem pretty straightforward. I'd imagine that all brokerages should have similar cover but worth checking out

My own view, safe as houses (and look what happened to houses)

http://www.tddirectinvesting.co.uk/help/faqquestions/how-safe-is-my-money/
https://www.interactivebrokers.com/en/index.php?f=ibgStrength&p=acc
https://www.tradeking.com/faqs/security/security-faq#myAssetsAtTradeKing

Static M.e.

Thanks everyone. I'm very much under the 50K limit so that is quite helpful to know, one less thing to worry about.

Broker Financial Services Compensation Scheme £50, 000 per client
TD Bank N.V. Dutch Deposit guarantee Scheme €100,000 per client

Hopefully, it will never come to it but I imagine that once you reach 50-100K investments that you spread your investments among different companies