Tips for online investors

Before you invest online:

• Find out about the alternatives for buying and selling securities.
  • Find out how to obtain account information if you cannot access the firm’s website.
  • Understand that you are probably not linked directly to the market, and that the click of your mouse does not instantly execute a trade.

• Ask for information: 
  • to substantiate any advertised claims about the ease and speed of online trading with the firm
  • about problems that have occurred with the firm’s website, including: 
    • significant outages,
    • delays; and
    • other interruptions to securities trading and account access.
      • Find out how to proceed if this happens.

• Before you start trading: 
  • Find out about entering and canceling orders (market, limit, and stop loss).
  • Find out about margin accounts (borrowing to buy stocks) and the risks that are involved.
  • 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.
  • Find out whether your name may be used for mailing lists or other promotional activities by the firm or any other party.
  • Get clear information about commissions and fees.
    • Find out if there are conditions that apply to any advertised commission.
  • Find out how to contact a customer service representative.
    • Let them know if you have concerns.
    • You should expect prompt attention and fair consideration of your problems.