Anonymous asked in Business & FinanceInvesting · 1 decade ago

Is my money at risk with certain stock brokers?

I'm about to start trading stocks on the stock market. I believe offers trades for only $2.50. Thing is I will be transfering about £10,000 of my hard earned money to them so I can start trading. What if they went bust? Would I loose all my investment? Am I protected or should I use a more reputable stock broker i.e a well known bank that charges more?..

11 Answers

  • 1 decade ago
    Favorite Answer

    I recomend reading this book"does Your Broker Owe You Money?"by Daniel R Solin. If you can choose your stock you can make the money. If they go broke just make sure you have have a list of the stocks you own and how much so you can put them in another company.

  • Anonymous
    5 years ago


    Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share. They are notoriously risky but if you follow a special method I've learned you can earn good money at almost no risk. This is the site I use:

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    As said above if you want to make money with penny stocks you have to follow some proven methods. This one in my opinion is the best:

    I hope it helps

  • 1 decade ago

    Of course you must be careful, buying stocks and shares is only buying into the chance of getting a profit, it is no way a guarantee that your money is going to increase.

    Look for a reputable trader, if it costs you a bit more then so be it at least you will be a bit more certain of the future.

  • 1 decade ago

    If you are in any doubt don't do it, 10k is a lot of money to lose. Better to pay a little more for the service but have it backed with some guarentees. There is always a risk with any kind of investment but there's not point in taking unnecessary chances but using a firm you aren't confident about.

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  • Anonymous
    1 decade ago

    Yes definitely. I would recommend using a well known broker with a good reputation. American Express are good and fairly cheap, although a little more than $2.50

  • 1 decade ago

    If you are so concerned about losing your money just by transferring it to a stockbroker then investing on the stockmarket is probably not for you.I would advise you to invest in unit trusts or similar if this is your only investment.Unless you are very clued up on stocks then it will to be too much of a headache for you.

    Source(s): 25 years of investing in shares/unit trusts etc
  • 1 decade ago

    money is at risk from ANY stock broker

  • 1 decade ago

    Trading stocks and shares is simply another form of gambling, with no guarantees.

    Only gamble if you can afford to lose.

  • Anonymous
    1 decade ago

    yes you are at an extreme risk

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