What Happens To Your Investments If Your Broker Collapses?
HTML-код
- Опубликовано: 3 июн 2024
- What happens to your investments if a broker collapses? Also - what happens to an ETF or fund if the fund manager company collapses and what happens if the bank or custodian holding your cash or shares goes under?
☕️ JOIN MY PATREON - DISCORD, BONUS VIDEOS, TARGET PRICES, MODELS & MORE
/ sashayanshin
💵 GREAT INVESTING APPS I USE
INTERACTIVE BROKERS (Global - Main investing app I use)
bit.ly/ibkr-sasha
GET A FREE SHARE WORTH UP TO £100 WITH TRADING 212 (UK & Europe)
www.trading212.com/promocodes...
You need to sign up and make a deposit within 10 days to get a free share.
GET A $10 BONUS WITH LIGHTYEAR (UK & Europe)
lightyear.app.link/SashaYanshin
You need to use promo code "Sasha" and the bonus is awarded after your first trade.
DISCLAIMER: Your capital is at risk.
DISCLAIMER: Some of these links may be affiliate links. If you purchase a product or service using one of these links, I will receive a small commission from the seller. There will be no additional charge for you.
DISCLAIMER: (For Lightyear affiliate link) The provider of investment services is Lightyear Financial Ltd for the UK and Lightyear Europe AS for the EU. Terms apply: golightyear.com/terms. Seek qualified advice if necessary. Capital at risk.
DISCLAIMER: Trading 212 provides execution-only service. This video should not be construed as investment advice. Investments can fall and rise.
DISCLAIMER: I am not a financial advisor and this is not a financial advice channel. All information is provided strictly for educational purposes. It does not take into account anybody's specific circumstances or situation. If you are making investment or other financial management decisions and require advice, please consult a suitably qualified licensed professional.
Had to watch until the last 30 seconds to get the really good tips.
😂😂😂
I can tell this man takes his turn instead of waiting his turn.
I have another scenario. HSBC Islamic Global Equity Index is notable because being sharia compliant, it has no derivatives in it. Something like a Blackrock MyMap 6 does. What if the ETF you have is filled with sub-prime garbage and there is a derivatives reckoning where several people all have claims to the same piece of paper? I'm guessing in this instance you are taking a very big haircut?
Yeah 10:23 to save a bunch of time
Just remember, barb wire on your apocalypses vehicle is a bad idea because they get stuck to it. You want them to slide off.
Great video and exactly what I’ve been wondering. Well done Sasha!
Very useful and timely information. THANK YOU!
This video went way over my head, still appreciate it!
Very helpful Shasha, your videos are very valuable to banking and investment professionals 🙌
Really informative. Many thanks Sasha
Thank you for these explanations, very valuable info that not a lot of people are talking about.
Congrats on your 100k!
👍 Thank you!
100k Sasha! Great stuff man well deserved!
I'm so glad u brought up this subject matter....I watched this with great interest...
Thank u....and keep up the good informative content...
Gz on 100k! You deserve it all.
Thank you so much!
Congratulations on 100k well deserved!
Thank you!
This is a great video. I had been wondering what would happen to my stock. Thank you.
Very informative and well researched video ❤👌
Great work investigating this
👍
Huge congrats on 100K Sasha. Been watching you for almost 2 years and you've come a long way. Keep up the great work. Do something you truly enjoy to celebrate. It's a big milestone. You deserve all of it.
Brilliant explanation of various scenarios, Mr. Sasha. A flowchart or some visuals could be useful for greater clarity. Cheerios!
Love the information! Thank you.
👍
Congratz on the 100k you earned it. And thanks for your well advised video and lack of constipated thumbnail !
Thank you!!! And thanks for watching 🙏
Nice, thanks for breaking down that.
👍
This is the video I was hoping someone would make. Thanks so much...
There you go!
Great as usual.
Good video thanks for the information as last week been mad with news place going under.
Congrats on 100K man. Love your commentary (even when I hate it)!
Haha! Thanks :) Good that people are happy to agree to disagree. This has weirdly become very uncommon!
Wow, 100K subs - congrats!
Thank you! 🥳
Very important video right now.
Great job!! 100K 🎉🎉🎉
🥳🥳🥳
Brilliant Great Explanation
👍
The videos are getting really good Sasha.
Thank you!
Congrats on 100k Sasha!!
Thank you!!!
Congrats on the 100k subscribers! Another excellent video, and this one is definitely going to give me a good night's sleep😁
Thanks Christine!!!
Congrats on the 100k subs Sasha 👌
Thank you Richard!!
Thank you for explaining. 😊
👍
100k subs is well deserved!!!! 🎉
Thank you!
Congrats on 100K Subs Sasha!
Thank you!
Congrats again on 100k buddy!
Thank you Toby! :)
Great info. Thanks ! 👍
👍
Congrats on 100k!
Thank you!!
I was just searching for a video like this. Thanks Sasha. I am interested in schd but not so sure about Schwab right now. I haven't researched that company enough.
Very timely upload. Taking advantage of the trend while giving value (opposed to the blatant clickbait of most finance RUclipsrs)
Thanks! Hopefully it helps and calms the nerves of anyone concerned 👍
Luckily I’ve lost so much in my brokerage account that such scenarios as discussed in this video are no longer too worrisome
🤣
Lol 😂 that’s one way to address the issue haha
@@SashaYanshin lol😅
Dude, same. I thought I had a "balanced" portfolio, but my stocks go down, and my shorts tread water. Makes no sense.
I love this guy!
👍
Keep up the good work 👌
👍
Thanks Sasha, great vid and great timing 🙏 For anyone having cash sitting in an isa / SIPP waiting to be invested, can you please cover ideas on what do with it eg overnight treasuries and pros / cons
Hey Sasha, could u make a video on latest T212 terms and conditions changes. Thanks for your work!
Congratulations on 100K .
I did say it wouldn't take long ❤👍👍👍👍👍👍😎🥰
Thank you!! :))
Great content. Your're funny too.
Thanks Sasha, I'm going to check who I'm dealing with now all because you made me think about it 👍
Just the fighting off anarchist hordes to figure out then! 😁😁😁
Love the ending 😅😅😅.... so true!!!! Packing my bugout bags and loading up all the ammo I could carry.
Thank you for insightful information.
Might be a silly question. Is this apply to Trading 212 as I think they are registered in Cyprus?
Congratulations on 100K, Sasha, well deserved!
Thanks!
Thank you Sasha for the apocalyptic ending, I needed to hear some reassuring words! 😅
😂😂😂
Uh. But what do single guys bring with them? I don’t even know where I can buy hard copy pRon anymore.
Congrats on 100k subscribers, Sasha. Incredible hard work and well deserved
Thanks!! :))
Any news on the new raise Sasha!?
This guy is the best . Informative, in a language I understand and also makes me laugh at the same time.😂
👍
Hey Sasha, fantastic channel, now Credit Suisse has been aloud to effectively default on their bonds do you think any of the bonds that the ECB bought with their QE rounds are exposed and if so any idea how much? Who effectively picks up the bill?
Great info as always. Another thing to remember is you get multiple $250k FDIC coverage if you have multiple account types: individual, joint, Roth IRA, etc.
Yeah - the 250k is per ownership category but multiple accounts in the same ownership category count as 1.
Brilliant
👍
What about UK protection ? .. we don’t have SIPC …
SIPC does not have the funds to back all the investable assets they supposedly cover. Neither does the FDIC have enough to cover all the deposits, however, I assume the Fed would print enough to cover and the dollars would be almost worthless.
We've just put our budgie in the old banger ,a dozen tins of Ambrosia creamed rice pudding and were off to central Dartmoor. I guess we'll be safe there.
Haha, I actually asked my bank that exact question back in February, they answered like you did. I was aware of the financial instability and started my first stock trading to keep my money out of the bank. I asked my bank what will happen if he was shutdown, are the stocks I buy are on my name or not. They said the stocks are in the name of the broker (the bank) and there are custodians to keep my shares so I can sell them through a different broker.
When you transfer your shares to computer share you own the shares. You get a paper saying you own them
Direct Registration of Shares sounds like a good idea...
Great info as usual. But how do brokers pay interest on idle cash?
Your money gets transferred overnight to banks they use. Most split it up into multiple banks, so you have more than 250k of protection.
The stocks might not be in your name at the custodian unless you have a custodian account. Most brokers offer low fees because they lend your shares for shorting, so the stocks are in the name of the broker at the custodian, but you are the beneficial owner in broker records. In case of fraud SIPC coverage is really helpful. SIPC is a huge advantage of US brokers relative to European brokers. Some Euro brokers have 20K protection with 10% haircut. US SIPC is the way to go.
Any shares loaned out under a brokerages fully paid lending programs in non-margin accounts are not SIPC insured. I've made tens of thousands of dollars lending shares out over the last few years, which is great, but there are risks and that some people may not be aware of.
Hey Sasha, what about owners of Evraz shares. Any info?
Hi Sasha my FOOKIN OG brother!
Good boy that was excellent you get an A. As a 20 year registered principal (Series 24) plus a bunch more, that was very good. The transfer agent would also have records of stocks ownership. You make the point of why it's good to be with big brokers like Merrill and Raymond james who self clear and have thier own banks. There is a potential for a bond fund to have a "run" that could collapse it IMO Also you missed hypothication of securities: most everyone agrees to it in your new account forms. Your broker can lend and pledge some of your securities. Those issues would get u an A+. In general your correct, brokerage assets are segregated and banks are pooled liabilities. Good job on many complex points.
thats why i brought a half acre farm here in Philippines i sold my half of my stocks 3 years ago i plan rice.have livestock and sell it best disicion now (PSE) Philippine stock exchange is also in turmoil
People getting bored of the hype channels love your videos seem very balanced and refreshing
Thank you!
Your welcome , all these RUclips’s affecting peoples mental health daily. Then trying to cross sell them something
I made this video yesterday and got a lot of mean comments telling me I'm stupid for making this video. It looks like your viewers are nicer than mine.
Oh! I make occasional helpful/educational videos interspersed with the opinion pieces. Maybe your audience will improve!
@@SashaYanshin Ha, they are usually pretty good but this video brought out some trolls.
What a great way to finish the video. I was crying with laughter 😅
Glad it was highly educational and helpful! 😆
@@SashaYanshin every so often you do have a pearler in a video. Really appreciate the time you put into this channel. Never miss a vid 👍
In the UK you are protected by FSCS (up to 85k gbp) , so on Platforms like T212 & Hargreaves you are ok up to that figure!
I even mentioned that in the video :)
@@SashaYanshin ah ok, sorry 😊
I still am not sure about this. Surely this 85k protection is for CASH in the account. If I had 200k in stocks for example built up and the broker collapsed then would my 200k worth of shares not be covered....?
@@kingbourbon8618 Nope only £85K😅. It's safer and better to trade on multiple brokerage accounts 👍. I have 4 Brokerage accounts 😅😂 gotta be street smarts in this sheisty dog 🐶 eat 🐶 world we now living in volatile strange times.
How do we check if trading 212, Vangard and hsbc stocks is using the same sip and fscs
is there any difference on the us brokerage $500k protection who is from outside US ? are all covered with the protection scheme whether inside or outside us customers? thanks
My investing always feels like this comments thread. I feel like I am ahead of the crowd but really I have just been lapped. 😢😮😅 You are all so quick and always know something I don't
Hahahah :)
What about fractional share platforms like Etoro where they hold all shares in a pot on your behalf?
So is it safer to keep cash in Bank of America or TDAmeritrade?
Wow this was amazing info explained perfectly thank you so much! And HEY I have more than 1.2 shares of tsla, I have 2 shares😂
😂😂😂
Super scary thought
what happens with CFD contracts?
Hey, you hit 100K!
It happened!
Sasha says "not your keys, not your coins"
thanks Sasha I'm getting my Bitcoin onto the blockchain right now
Yikes!!!
Great video, funny and reassuring. One question - what happens if you have CFDs and your broker goes bust? Then you do not own the underlying asset, you only have a contract with the broker.
Yeah - CFDs are just paper that is not backed by shares, so the risk is entirely different.
Thanks Sasha. Side question: What ETF do you like personally in the UK for the S&P500 and Nasdaq respectively?
This is applicable also for the Trading 212? If they go under, what is happening with my shares? My understanding is that Trading 212 have to sell all there shares in Interactive Brokers and that I will be able to get max 20k Euro, money that are insurad. Is this correct? Or my shares will be transfered to another broker? What is happening if your portfolio is above that amount? Thanks.
Sasha, bank share prices have massively dropped, shall I buy some more a la Warren Buffet, or shall I not?
As you later state at 3:25, technically the shares you buy through a broker are not in your name, so there is an extra obstacle to overcome in case of a collapse.
It depends on the broker and way your shares are held.
What about requesting physical certificates of the shares if you are holding long term? Better option?
Most companies don't issue paper stock certificates anymore, but you can have your shares directly registered to you with the company and removed from your broker. That's what the AMC apes were doing to prevent their shares from being loaned out and shorted. Just Google stock direct registration.
Could you talk about the differences between SIPC and FSCS? I'm asking because it appears that IBKR UK uses SIPC protection instead of the UK FSCS.
IBKR UK are regulated by the FCA and cash is protected by the FSCS, up to £85,000.
What about brokers with fractional shares? In this case do you actually own a share or your are at risk of losing it?
A far more probable way to look at it is: what if 25 to 40% of holders of shares/retirement funds and such just requested payout in physical cash. The entire system would break overnight. There is not enough physical cash in existence for them to cover everyone's shares/investments.
And why would everyone want physical cash? To burn it to keep warm?
Excellent videos but if possible try to make them shorter in time
It’s 10 minutes and has zero filler in it. How am I meant to go faster?
The end got me laughing so hard lmao
100k 👏🏻
👍
TDLR: use vanguard
Noy aure if the issue of margin accounts was raised. My understanding is the position there is a lot more like a bank account or worse. Please clarify
Hey Random RUclips Guy,
Is there a way to find out who owned the most of these now worthless Credit Suisse bonds? I'm thinking financial contagion coming down the line or maybe they can write off the losses..?
Credit swiss lost billion’s for it’s investors since 2013 and guess what in the same time since 2013 the top ceo‘s and cfo‘s and so on got payed even more billions in sallery and bonuses!
That’s just crazy! Even now in march they want to pay there bonuses after this mess can you believe this!?!?