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Ok so... 1) How will they afford SIPC coverage? (That is the insurance for your money in case they fail.) 2) Will they do any securities lending with purchase
by wheaties 13y ago
Ok so...
1) How will they afford SIPC coverage? (That is the insurance for your money in case they fail.)
2) Will they do any securities lending with purchased stock?
3) How much will they charge for selling a stock short?
4) Taxable reporting? Do they handle that or is that up to you, the investor?
- AndrewKemendo 13y ago1) How will they afford SIPC coverage? (That is the insurance for your money in case they fail.) I would bet that a good portion of their outside investments would go toward this while they are growing. If they can make enough on their API and margin trading that would cover it long term. I would also bet their margin trades will have a bit higher lending costs than a typical trading platform.
- greenyoda 13y ago"Taxable reporting? Do they handle that or is that up to you, the investor?" As far as I know, it's a legal requirement for your brokerage to report your income and transactions to you and the IRS on the various 1099 forms.