Industry News and Articles
Online Brokers Suffer Service Failures as Markets Surge
THERESA W. CAREY - Updated Nov 9, 2020
Apparent lack of capacity for trading surges strikes again.
As markets surged on positive vaccine news and election sentiment, online investors and traders worldwide were foiled, yet again, by an inability to place trades on many major platforms. In the UK, traders reported problems with AJ Bell, Hargreaves Lansdown, and Fidelity UK, while US customers of Charles Schwab, TD Ameritrade, Merrill Edge, and Fidelity suffered slowdowns
UK investors, at least those with big portfolios, are on the hook if their broker fails.
Recent broker failures in the UK have raised many questions about established concepts, including whether these investment platforms are adequately secured to prevent customer funds from being trapped in the event of an insolvency.
Firms fail and collapse into administration, which often brings enormous ramifications for investors, for many reasons. Some are related to unpreventable events and circumstances outside the control of the company, while others can be related to poor internal management, wrong decisions, or commercial fraud.
When Two UK Brokers Go Bust in One Month, Whose Fault is That?
Aziz Abdel-Qader - Wednesday, 25/12/2019