Novice Investor's FAQ: How money is actually protected on the exchange
In our blogs on Habré and Hiktimes, we write a lot about the stock market device, technologies used in the stock exchange, real tools that can be used and how this process is organized from a legal point of view. Nevertheless, many of our readers still do not instinctively trust the stock exchange.
This attitude did not appear today or yesterday, there are various reasons for that, we will not dwell on them in detail, but rather answer one of the most popular questions that we encounter in the comments - are my money protected when trading on the stock exchange and will not steal Does anyone have them?
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First of all, let us say that it is necessary to open a special brokerage account for trading on the stock exchange - it is opened by broker companies that are allowed to work with a particular market on a specific exchange platform.
It is precisely to brokerage companies that one often encounters negative observers who are not particularly versed in the subject and therefore are mixed in one pile of forex dealers, microfinance organizations and, in fact, brokers. It is important to know one thing - brokers only provide customers with access to the stock market.
A private person cannot independently perform transactions on the stock exchange - for this it is necessary to obtain the appropriate license, which can only be held by a legal entity. Brokers receive it, open accounts to clients, with the help of which clients give orders to purchase currency or shares — for example, by telephone, in a web office or through a trading terminal.
It is important to understand that assets on such accounts are not insured, for them there is still no analogue of the bank deposit insurance system.
To protect your funds, nevertheless, you can, initially selecting a reliable broker. Brokers are regulated by a number of laws: the Civil Code of the Russian Federation, the Law on the Securities Market and others. The controlling body for brokers is the Central Bank, as well as for ordinary banks. And if something happens to a broker, you can take your money through another.
Let's talk about how to choose a reliable brokerage company. In fact, the criteria are quite simple:
In fact, the criteria for choosing a good broker are similar to the criteria used, for example, when looking for a good tour operator or Internet provider, so there should be no difficulties.
If the broker still went bankrupt or lost the license, his client is protected by Russian law. For example, nobody has the right to close debts at the expense of a client’s assets. In addition, the shares purchased on the stock exchange are impossible to lose, they are stored in the National Settlement Depository (NSD). To transfer them anywhere without the knowledge of the client is impossible.
NSD itself is the central depository of the Russian Federation and provides services both to the securities provided for by the Federal Law dated December 7, 2011 No. 414- “On the Central Depositary”, and other Russian and foreign issuing securities. That is, the de facto national settlement depository is the state "bank" in which money and securities of participants of the stock and currency markets are kept.
Thus, if something happens to your broker, you just need to negotiate with another broker and transfer assets to it.
By the way, in February, the Ministry of Finance began to discuss the possibility of insuring broker accounts of citizens. How it will work (if it is) is described in detail in Vedomosti.
There is a good article in the Tinkoff Journal about the main misconceptions and stereotypes that have developed in the society about the exchanges. The author, in particular, argues that all doubts and comments about the unreliability of contributions to the stock exchanges are from financial illiteracy. At the same time, fraudsters can be in any activity (you can come across them when working with banks, but at the same time no one questions the integrity of the banking system itself). And here you can read about how to protect yourself from fraud when buying securities.
In addition, in its article, the Central Bank talks about the types of fraud in the financial market: from “pyramids” to insider trading, fake “Forex” and market manipulation.
This attitude did not appear today or yesterday, there are various reasons for that, we will not dwell on them in detail, but rather answer one of the most popular questions that we encounter in the comments - are my money protected when trading on the stock exchange and will not steal Does anyone have them?
')
About brokers and brokerage account
First of all, let us say that it is necessary to open a special brokerage account for trading on the stock exchange - it is opened by broker companies that are allowed to work with a particular market on a specific exchange platform.
It is precisely to brokerage companies that one often encounters negative observers who are not particularly versed in the subject and therefore are mixed in one pile of forex dealers, microfinance organizations and, in fact, brokers. It is important to know one thing - brokers only provide customers with access to the stock market.
A private person cannot independently perform transactions on the stock exchange - for this it is necessary to obtain the appropriate license, which can only be held by a legal entity. Brokers receive it, open accounts to clients, with the help of which clients give orders to purchase currency or shares — for example, by telephone, in a web office or through a trading terminal.
It is important to understand that assets on such accounts are not insured, for them there is still no analogue of the bank deposit insurance system.
To protect your funds, nevertheless, you can, initially selecting a reliable broker. Brokers are regulated by a number of laws: the Civil Code of the Russian Federation, the Law on the Securities Market and others. The controlling body for brokers is the Central Bank, as well as for ordinary banks. And if something happens to a broker, you can take your money through another.
Choosing a reliable broker
Let's talk about how to choose a reliable brokerage company. In fact, the criteria are quite simple:
- The most important thing is the availability of licenses of the regulator (now in Russia it is the Central Bank, and until 2013 the Federal Financial Markets Service), on the website of honest brokers you can always find such licenses (for example, their list on the ITinvest website ). If you are shown a piece of paper issued by some other (for example, foreign) organization, you don’t need to give money to such a broker.
- Company Reliability Rating. However, ratings may vary depending on who they are. However, you can note that some companies will have consistently the same ratings. On them, and should opt.
- The term of work in the market.
- Having access to Russian and international sites (information on broker membership at different sites must also be presented on the site ) within a single account.
- The presence of a personal consultant.
- Number of offices and cities of presence. The wider the geography, the better.
- A variety of tariff plans and transparency of calculation (all information on our tariffs can be found here ).
In fact, the criteria for choosing a good broker are similar to the criteria used, for example, when looking for a good tour operator or Internet provider, so there should be no difficulties.
What happens if the broker goes bankrupt
If the broker still went bankrupt or lost the license, his client is protected by Russian law. For example, nobody has the right to close debts at the expense of a client’s assets. In addition, the shares purchased on the stock exchange are impossible to lose, they are stored in the National Settlement Depository (NSD). To transfer them anywhere without the knowledge of the client is impossible.
NSD itself is the central depository of the Russian Federation and provides services both to the securities provided for by the Federal Law dated December 7, 2011 No. 414- “On the Central Depositary”, and other Russian and foreign issuing securities. That is, the de facto national settlement depository is the state "bank" in which money and securities of participants of the stock and currency markets are kept.
Thus, if something happens to your broker, you just need to negotiate with another broker and transfer assets to it.
By the way, in February, the Ministry of Finance began to discuss the possibility of insuring broker accounts of citizens. How it will work (if it is) is described in detail in Vedomosti.
And some more links
There is a good article in the Tinkoff Journal about the main misconceptions and stereotypes that have developed in the society about the exchanges. The author, in particular, argues that all doubts and comments about the unreliability of contributions to the stock exchanges are from financial illiteracy. At the same time, fraudsters can be in any activity (you can come across them when working with banks, but at the same time no one questions the integrity of the banking system itself). And here you can read about how to protect yourself from fraud when buying securities.
In addition, in its article, the Central Bank talks about the types of fraud in the financial market: from “pyramids” to insider trading, fake “Forex” and market manipulation.
Other materials on the topic from ITinvest :
- IT-vacancies from ITinvest ( Matrix trading system administrator, QORT administrator , lead programmer );
- Online Trading: How to become a developer of systems for trading on the exchange
- What a programmer should be able to get a job in finance
- How to recognize a person's emotions in his face: A test for employees of financial companies
- The conditions under which the financiers work: A tour of the offices of Goldman Sachs and Bloomberg
Source: https://habr.com/ru/post/306200/
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