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10 Tips for Online Investing

When You Invest Online, Be Sure To:

  1. Receive full disclosure, prior to opening an account, regarding the alternatives for buying and selling securities and how to obtain account information if you cannot access the firm's Web site.
  2. Understand that most likely you 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 significant outages, delays, and other interruptions to securities trading and account access, and how to proceed under these circumstances.
  5. Obtain information before trading about entering and canceling orders (market, limited and stop loss) and the details and risks margin accounts (borrowing to buy stocks).
  6. Determine whether you are receiving delayed or real-time stock quotes and when your account information was last updated.
  7. Review the firm's privacy and Web site security policies and 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 Nevada Secretary of State, Securities Division, to (1) verify the registration/licensing status and disciplinary history of the online brokerage firm; (2) find out if the investment is permitted to be sold; and (3) file a complaint, if necessary.


For additional educational materials, please contact the Nevada Securities Division at 555 E. Washington Ave. Suite 5200, Las Vegas, NV. 89101 or 1-800-758-6440.


Last updated: 2/19/2010 9:22:37 AM