When You Invest Online, Be Sure To:
- 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.
- 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.
- Receive information from the firm to substantiate any advertised claims concerning the ease and speed of online trading.
- 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.
- 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).
- 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 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.
- Receive clear information regarding commissions and fees and conditions that apply to any advertised commission.
- Know how to, and if necessary, contact a customer service representative with your concerns and request prompt attention and fair consideration.
- 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.