# Do I need to close my e*trade account?



## crazyquik (Jun 8, 2005)

The bottom has fallen out of thier stock and one researcher released a note saying there was a 15% chance they would go bankrupt. What happens to my stock (and everyone else who uses etrade) if they do declare bankruptcy?


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## jbmcb (Sep 7, 2005)

AFAIK nothing, when you buy stock it's yours, it doesn't matter how you bought it. It might be a bit difficult to get at for a little while, however.

If they go belly up other brokerages will probably buy up their accounts. I don't think they'll go out of business, if anything Morgan Stanley Dean Witter Price Waterhouse Cooper E F Hutton will buy them outright and tack another name at the end.


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## KenR (Jun 22, 2005)

Another victim of sub prime mortgage disaster. The stock is at about 3 1/2 today.


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## nsoltz (Mar 27, 2005)

If they are holding securities for you in a street name, you are fine. Nonetheless, you might want to consider a different broker. Call me a bit old fashioned, but we still use a full service broker (we get preferential commission rates) but find that there are a number of very subtle services and some not so subtle. For example, we will be moving in as early as 2 years depending upon what I do with new businesses. If house cannot sell, we would do an owner finance and our financial reps could handle all of that. In other words, I think that at times the discount trading aspect of an investment house is really only a small part of overall financial services. And I would not be hesitant to pull an account if I felt a full service broker was doing nothing but hustling for commissions.


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## KenR (Jun 22, 2005)

If e-trade is your broker and they go out of business you are covered by the Securities Investor Protection Corporation (SIPC) for up to $500,000 ($100,000 can be cash). Many firms carry what is known as "excess SIPC" which can cover your holdings further.


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## 16128 (Feb 8, 2005)

I like TradeKing

https://www.tradeking.com/

ETrade has never had great customer service, IMO.


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## rip (Jul 13, 2005)

Of course, a 15% chance of going under is an 85% chance of not.


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## Concordia (Sep 30, 2004)

rip said:


> Of course, a 15% chance of going under is an 85% chance of not.


Five chambers out of six are empty.


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## Southern Comfort (Jul 25, 2007)

As said above, your securities are insured and should be fine. However, if you are looking to switch, I would think some of the other electronic brokers will be smelling blood and offer great discounts/incentives to switch over. Call and explain to them you're thinking of switching and see what they can do for you.


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