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money:picks [2019/09/06 07:50]
admin
money:picks [2019/11/04 19:08] (current)
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 Can use Upstox for free. https://​upstox.com/​. Another with a down review is Zerodha. Can use Upstox for free. https://​upstox.com/​. Another with a down review is Zerodha.
   * Upstox NRE accounts https://​upstox.com/​help-center/​nri/​frequently-asked-questions-nri/​6498-types-of-accounts-for-nris/,​ need a PIS account (free) with YES bank or another one. https://​www.yesbank.in/​personal-banking/​nri-banking/​investment/​portfolio-investment-schemes   * Upstox NRE accounts https://​upstox.com/​help-center/​nri/​frequently-asked-questions-nri/​6498-types-of-accounts-for-nris/,​ need a PIS account (free) with YES bank or another one. https://​www.yesbank.in/​personal-banking/​nri-banking/​investment/​portfolio-investment-schemes
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 +
 +===== Brokerages =====
 +
 +==== Charles Schwab ====
 +Might switch over from Robinhood once they go to fractional shares. Starting to release free trades, and they do tax lot minimization for you.
 +
 +==== M1 Finance ====
 +Lots more info here on how M1 makes money. https://​www.m1finance.com/​blog/​how-m1-makes-money/​
 +
 +Thankfully the $.02 minimum SEC fees are only levied on **sales** not on purchases. Great!!
 +
 +==== Robinhood ====
 +Gets paybacks for trading for order flow from market makers like Citadel. They don't want to be overrun by a big institution (take on a huge sale 100 shares at a time and can't sell it at the price they bought it). https://​www.bloombergview.com/​articles/​2016-02-25/​-flash-boys-exchange-isn-t-about-the-little-guy
 +  * So they do offer a price **improvement** because they pay for knowledge of the retail orders (small and innocuous) and offer a price improvement too.
 +  ​
 +
 +
 +<​blockquote>​Robinhood places your orders via the exchange APEX. APEX gives Robinhood rebates for this. In turn, APEX sells your data feed to HFT to front run your order or possibly uses their own dark pool. Robinhood does not use IEX. Use a limit order and remember you will not get the best possible fill price. At least the commission is "​free"​.</​blockquote>​
 +  * IEX = an exchange that doesn'​t give HFT's an advantage. However, not necessarily a hero either???
 +  * How are limit orders able to be manipulated??​ Something about fill prices...
 +    * Yeah, if you want to buy at $50, but they can get it at $49.98 or higher before it gets to you, then they get the $.02 instead of you and the buyer meeting in the middle at $49.99 and the scalper not getting anything. I thought the SEC protected against this...
 +
 +=== Questions for them, maybe on phone? ===
 +  * I see that my orders are routed through Apex. How much am **I** losing when I do this? (As they sell the order info to HFT's and my only option is to buy / sell at market price, which means I'll get scalped, somewhat!). [[https://​startupsventurecapital.com/​robinhoods-exceptionally-clever-business-model-arbitraging-privacy-776663d4d855|Source]] and APEX gets average of $.002 per share. https://​www.m1finance.com/​Order_Routing_Disclosure_and_Report-2017Q2.pdf
 +    * //Maybe it doesn'​t matter until you're trading 100s of shares at a time and a $7 etrade fee is worth it. But at that point, you might as well switch to Robinhood and do limit orders, etc.//
 +  * What is the timeline for fixing the FIFO stuff?
 +    * That really betrayed my trust! It seems an obvious oversight! What else am I not knowing about?
 +  * There are lots of features that Apex provides, supposedly, that other fintech companies are using. Do you have to pay more to use them?
 +    * https://​riabiz.com/​a/​2015/​5/​1/​with-robo-advisors-on-the-rise-robo-custodian-apex-is-rising-with-them-a-diamond-mined-from-the-rubble-of-the-penson-worldwide-debacle
 +  * The menu on Apex's website is so kloogy as it redirects to older parts?? It's not that hard to do a redesign...
 +  * How can a limit order be manipulated?​
 +    * https://​news.ycombinator.com/​item?​id=11666509. But want to understand.
 +
 +
 +
 +Sign up with ERN link: https://​mbsy.co/​lWzbh. DONE!
 +
 +Perfect for automating allocating incoming money and "​force"​ rebalancing if you so choose https://​support.m1finance.com/​hc/​en-us/​articles/​360001379367-How-M1-Finance-Trades. Also free transactions,​ fractional shares, 3.5% loan on 35% of your capital, and can probably api it to get non-dividend stocks to some extent (https://​earlyretirementnow.com/​2018/​05/​30/​idea-for-a-new-etf/​).
 +  * You can take 50 companies from the S&P 500 and it highly approximates the S&P 500. Or just pick up Berkshire Hathaway, etc.
 +
 +Probably can't transfer VTSAX into it without incurring capital gains, so maybe wait when you're going to sell stuff and try it out with some new money?
 +
 +"Tax minimization"​ strategy: <​blockquote>​In contrast, the M1 tax minimization feature aims to automatically make choices that will help you tax-wise when sales are part of rebalance. ​ For example, they will sell shares that have a loss first, shares that have a long-term gain second, and shares that have a short-term gain last.</​blockquote>​
 +  * Good test would be to sell something that's gone down and make sure that they register a taxable event on the books, and that it's ....
 +  * Maybe think about it a little first, then call up their support and make sure they'​re doing the right thing. Don't want a wash sale, etc.
 +  * You can now sell parts of pies individually. Not sure why you'd want to do that though. Maybe to force the tax loss harvesting. Rebalancing will do the same thing basically.
 +  * Unfortunately it looks like Apex is doing FIFO...m(
 +
 +Likely won't do **capital gains harvesting** (selling only large capital gains lots while in 0% tax bracket to raise tax basis): https://​www.bogleheads.org/​wiki/​Tax_gain_harvesting
 +  * Why only the large capital gains ones? I don't think it matters what they are as only the capital gains will be counted as you already paid taxes on them initially so they aren't counted as income
 +  * Also capital gains aren't subject to wash sale rule
 +
 +
 +Transfer account from Vanguard using an in-kind transfer. Out of vanguard is free and coming into M1 is free and supposedly keeps tax lots. However, does VTSAX (mutual fund) transfer to a mutual fund in M1? https://​www.m1finance.com/​blog/​transfer-stocks-between-brokerages/​
 +
 +Main thought is whether it’s worth splitting VTSAX up. And 2,
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 + 
 +
 +Also Apex is providing the backend to just about every thingy out there (Robinhood, betterment, etc).
 +
 +https://​riabiz.com/​a/​2015/​5/​1/​with-robo-advisors-on-the-rise-robo-custodian-apex-is-rising-with-them-a-diamond-mined-from-the-rubble-of-the-penson-worldwide-debacle
 +
 + 
 +
 +https://​startupsventurecapital.com/​robinhoods-exceptionally-clever-business-model-arbitraging-privacy-776663d4d855
 +
 + 
 +
 + 
 +
 +How much are HFT trader front running worth? Enough for free $9 trades?
 +
 +
 +https://​en.wikipedia.org/​wiki/​Flash_Boys. Lists good criticisms that I don’t quite understand yet. Like “HFT’s are actually helpful!” hm…
 +
money/picks.txt · Last modified: 2019/11/04 19:08 by admin