Tennessee Securities Division Shares 10 Tips For Online Investors
Tuesday, November 17, 2015 | 04:12pm
NASHVILLE – Whether you’re a seasoned online investor or just learning the ropes, the Tennessee Department of Commerce & Insurance’s Securities Division is a resource for navigating the complicated, fast-paced world of online investing.
When you invest online, be sure to keep these 10 tips in mind:
- Receive full disclosure, prior to opening your account, about the alternatives for buying and selling securities and how to obtain account information if you cannot access a firm's website.
- Understand that most likely you are not linked directly to the market, and that the click of your mouse does not instantly execute a trade .
- Receive information from the firm to substantiate any advertised claims concerning the ease and speed of online trading.
- Receive information on the firm's website about significant outages, delays and other interruptions to securities trading and account access, and how to proceed under these circumstances.
- Obtain information before trading about entering and canceling orders (market, limit and stop loss), and the details and risks of margin accounts (borrowing to buy stocks).
- Determine whether you are receiving delayed or real-time stock quotes and when your account information was last updated.
- Review the firm's privacy and website security policies and whether your name may be used for mailing lists or other promotional activities by the firm or any other party.
- Receive clear information about commissions and fees and conditions that apply to any advertised commission.
- Know how to, and if necessary, contact a customer service representative with your concerns and request prompt attention and fair consideration.
- Contact the Tennessee Securities Division to verify the registration/ licensing status and disciplinary history of the online brokerage firm; find out if the investment is permitted to be sold; and file a complaint, if necessary.
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