Robin Hood hacked

[wherebee]

We have talked on here about how return OF capital is just as important a return ON capital.

 

Well - here we go.  A great example of how it doesn't matter if you are up 15% for the month if the broker you use loses your money...

https://www.zerohedge.com/markets/i-dont-really-trust-them-2000-robinhood-accounts-hacked-some-had-funds-siphoned-external

[Sugarlips]

I’ve been using the Stake app to get US exposure without brokerage from Australia for the last year, very happy with it so far but yes, certainly security is a downside risk.

[wherebee]

8 minutes ago, Sugarlips said:

I’ve been using the Stake app to get US exposure without brokerage from Australia for the last year, very happy with it so far but yes, certainly security is a downside risk.

yeah, I understand that.  I use IB due to their size and experience in market collapses.  Why not use stake for the buying and then transfer over to a more secure broker if you are holding long term?

[Sugarlips]

8 minutes ago, wherebee said:

yeah, I understand that.  I use IB due to their size and experience in market collapses.  Why not use stake for the buying and then transfer over to a more secure broker if you are holding long term?

I think Stake only lets users trade, at least I haven’t seen a transfer securities option, will look into cheers.

[Harley]

7 hours ago, Sugarlips said:

I’ve been using the Stake app to get US exposure without brokerage from Australia for the last year, very happy with it so far but yes, certainly security is a downside risk.

Many thanks for that.  I've had a nightmare with various brokerages, etc with rubbish systems and zero customer support.  Quite unbelievable how bad they can be, and costly (fees and errors) too.  So any competition the better.    I've had a look.  Really like their approach in a number of ways and overall clarity about things.  Concerned they only offer a subset of the US stock market, although I managed to find the ones I wanted.  Also would like some non FSA (or whatever they are calling themselves this week) registered ones given my expected regulatory bullying (e.g. the latest bitcoin derivative clampdown).  Also new and small.

PS: That's Hellostake, not Stake the betting platform!

PPS:  Their accounts

[Harley]

These financial institutions like to put you through the security wringer but don't reciprocate and often undertake terrible security practices themselves.  For example, asking you to send identify documents via clear email, often instead of the secure upload process they used in the initial opening.  Even just using clear email and not having a secure message system.  None of these are difficult, although some do take security seriously and avoid responding to any support messages!

Then take Degiro for example.  Big banner on their website to be careful of phishing with fake emails (only .com and ano valid) and yet their support department uses an "unauthorised" .co.uk email address, and from Ireland!  Most fraud is not sexy via hacks etc but via broken manual processes (especially in overstretched companies at either end of the success spectrum) and compromised employees.

[Errol]

How ironic (given the name).