10 Tips For Online Investing
When You Invest Online, Be Sure To:
1. Obtain full disclosure, prior to opening an account, regarding
alternatives for buying and selling securities and obtaining account
information if you can’t access the firm's Web site.
2. Understand that you likely are not linked directly to the market
and that the click of your mouse does not instantly execute a trade.
3. Receive information from the firm to substantiate any advertised
claims concerning the ease and speed of online trading.
4. Receive information regarding the firm's Web site, including
how to proceed during significant outages, delays, and other interruptions
to securities trading and account access.
5. Obtain information before trading about entering and canceling
orders (market, limited and stop loss) and the details and risks
of margin accounts (borrowing to buy stocks).
6. Determine whether you are receiving delayed or real-time stock
quotes and when your account information last was updated.
7. Review the firm's privacy and Web site security policies, including
whether your name may be used for mailing lists or other promotional
activities by the firm or any other party.
8. Receive clear information regarding commissions and fees and
conditions that apply to any advertised commission.
9. Know how to, and if necessary, contact a customer service representative
with your concerns and request prompt attention and fair consideration.
10. Contact the CONSOB - Commissione Nazionale per le Società
e la Borsa to:
(a) verify the registration/licensing status and disciplinary history
of the online brokerage firm;
(b) find out if the investment is permitted to be sold;
(c) file a complaint, if necessary.