Book Free Consultation

Your Broker Platform: Common Questions Answered

Jun 23, 2024

Hello Stoic Investors,

Today it's my birthday! I'm 28 years old now, and I couldn't be more excited.

 

28 is my favorite number, and reaching this age feels special. 

I'm very happy that I've achieved many of my goals over this year, and I'm also grateful to have reached this

point with you! 

 

Now, let's talk about the topic of this newsletter: 3 common questions about your broker platform.

Whether you're worried about your broker going bankrupt, thinking about switching brokers, or planning to

move to a new country,

I'll give you the answers you need to feel confident and secure in your investment journey.

 

Question 1: "What if my broker goes bankrupt?"

One of the biggest fears investors have is the potential bankruptcy of their broker.

It’s important to know that your cash and investments are protected.

 

Here’s how: 

1. Cash Protection:

Your cash held by the broker is protected up to a certain amount.

 

USA: Protected up to $250,000 by the Securities Investor Protection Corporation (SIPC).

UK: Protected up to £85,000 by the Financial Services Compensation Scheme (FSCS).

Europe: Varies by country, but many European countries offer protection up to €100,000.

 

2. Investment Protection:

Your investments, like stocks and bonds, are kept separate from the broker’s own assets.

 

USA: SIPC provides protection for securities up to $500,000.

UK: FSCS provides protection for investments up to £85,000.

Europe: Varies by country, typically around €20,000 to €100,000 depending on national schemes.

 

Always check what specific protections are available in your country or region to be sure you are fully

informed about your rights and protections.

 

 

Question 2: "What if I want to change brokers?"

Changing brokers is very common among investors.

Here’s how you can smoothly transition from one broker to another:

 

1. Open a New Broker Account:

Start by researching and selecting a new broker.

Open an account with the new broker and be sure it’s fully operational.

 

2. Request a Migration of Assets:

Contact your new broker and request a transfer of your assets from your old broker.

This process is usually straightforward and can be initiated online or with the help of customer service

representatives.

 

3. Transfer Process:

Your new broker will coordinate with your old broker to transfer your assets.

This may include stocks, bonds, mutual funds, and other investments.

The transfer process can take anywhere from a few days to a few weeks, depending on the brokers

involved.

 

Understand any fees associated with transferring assets, as some brokers may charge for this service.

 

USA: Many brokers in the USA use the Automated Customer Account Transfer Service (ACATS) for smooth

asset transfers.

UK: In the UK, brokers use the Transfer of Cash and Assets (TOC&A) service.

Europe: Processes vary, but many European brokers follow similar procedures to ensure smooth

transitions.

 

 

Question 3: "What do I need to do if I move to a new country?"

Moving to a new country involves different steps to make sure your investments stay safe and legal.

Here’s what you need to do:

 

1. Close Your Current Broker Account:

If your current broker doesn't operate in your new country, you might need to close your account.

Before doing this, make sure you understand the tax implications.

 

2. Pay Taxes on Realized Gains:

Moving to a new country may lead to taxes on profits from selling your investments.

Make sure to report and pay any taxes owed to your current country's tax authority before you move.

 

USA: The tax authority requires you to report all income, including gains from sold investments.

UK: You may need to pay Capital Gains Tax on any profits made from the sale of investments before

moving.

Europe: Each country has different tax regulations; check with local tax authorities.

 

3. Open a New Broker Account:

Once you’ve relocated, open a new broker account in your new country.

Websites like brokerchooser.com can help you compare brokers and choose the best one for your needs in

the new location.

 

Always stay updated on financial rules in your new country, as they can be very different from those in your

previous location.

 

So, Note down these three Q&A about your Broker platform and start investing today:

1. "What if my broker goes bankrupt?": Your cash is protected up to a certain amount, your

investments are 100% protected

2. "What if I want to change brokers?": Open a new broker, request a migration of assets from your

old broker

3. "What do I need to do if I move to a new country?": Close your broker, pay taxes on realized

gains; open a new broker via brokerchooser.com


 

See you again next week.

 

Whenever you're ready, here is how I can help you:

1. Take advantage of all our Free Resources and start your journey as Stoic Investor 

2. Book a 15 Min Consultation to ask your questions and we will point you in the right direction

3. Register for my Free Masterclass for Beginner UK Investors (LIVE!)

About Me

I am Vittorio Rigato, the Investing Coach behind Stoic Money.

I invested for more than 8 years, both for myself and by managing the 7-figures retirement account of my family.

After my¬†Master Degree in¬†Finance & Management,¬†I worked in the FinTech industry in Frankfurt (Germany) and managed financial products with value up to ‚ā¨100 Millions.

In 2021 I have founded Stoic Money to teach employees and professionals worldwide how to invest to reach $1,000,000 Net Worth and beyond. Many of them reviewed Stoic Money service with a video testimonial here.

Multiple Finance News Websites like Yahoo Finance and Euronews talked about Stoic Money mission and services.

Recent issues from The Stoic Investor newsletter

Your Broker Platform: Common Questions Answered

Jun 23, 2024

A Simple £10,000 Strategy for UK Residents

Jun 16, 2024

3 Mistakes to avoid as a Beginner Investor

Jun 09, 2024

Get articles like this directly into your inbox.

Join 2k+ subscribers and get one actionable tip to get closer to Financial Freedom every Sunday morning.