Check your brokers, do you have shares or CFD contracts?
By - Independent_Let89
Yeah been thinking about this, in the light that we need more eyes on the phenomenon of IOU's vs CFD's vs Beneficial Ownership of derivatives etc...
Much has come to light recently in the debacle of what's happening when apes are transferring out of shady brokers and receiving notice they never had the shares. And the phenomenon of the clearly lying brokers who have delayed transfers when it's quite clear that they're just not submitting the request and kicking the can because they've been caught out hanging in the wind without the underlying security purchased on the behalf of the investor. It's important people get 100% on the way it's all handled so I welcome and conversation in this regards in this time. For my own learning as well as seeing the collective mind grow in the direction it needs to grow.
I think right now we're on the cusp of a breakthrough in understanding and the actual meaning of these words in relation to what's happening when transferring is important for future events I see coming.
I've always been with Fidelity but I am concerned for all the other apes getting pushed back and want to see this part of the story through to it's inevitable conclusion with everyone struggling with transferring.
Thank you for the response, I’ve been thinking about this for a while and got triggered again by inability to transfer the shares by other apes.
I am just afraid of the fact that posts like these won’t get enough exposure, but a tweet from somebody or 741 fills my feed
I recently asked Hargreaves Lansdown about this and received this reply:
"Thank you for getting in touch, I hope you are well.
The Gamestop Corp shares you hold in your Stocks & Shares ISA are not CFDs. In order for UK investors to invest in overseas companies via HL, the shares are usually packaged into a vehicle called a CREST Depository Interest (CDI). Investing in a CDI gives you exposure to an overseas security as a UK investor. The underlying shares are held on trust for the benefit of the investor that owns the CDIs.
These CDIs are regulated securities representing shares held via CREST in their DTC account under Hargreaves Lansdown Nominees Limited however, you remain the beneficial owner. If you wish sell your shares at any point, we will not have to locate your shares before the trade can be executed. Any shares held on behalf of HL clients cannot be lent out by CREST to short sellers or other market participants, regardless whether they are held in the UK or overseas."
The way I interpret this is that they have our physical shares bought and paid for, but that they are unlikely to be registered to each retail investor, but instead under the nominees account.
Obviously this is not as secure as having the shares registered with Computershare the transfer agent, but I feel confident in knowing the shares are there, being held on my behalf and not just some IOU like a lot of the US brokers.
Thank you for sharing this!
Yeah, ISA accounts generally are not CFD’s but actual stocks
Thank you for sharing
Etoro has seperated CFD and real share buying fairly clearly. If you have a CFD marker on your shares thats that. if not it should be a real share that is being held by Etoro for you as per their own contract.
EToro started out with CFD only, they opened it up to shares later.
Ok. Still they say it in their FAQs, when its not CFD, they buy the share into their account and hold it for customer with customer having control of that share. If they dont do it like that then they are frauding customers big time and it would fuck them over so badly its not even funny. Like INSTA gibbed from existence. I dont think they want to take that risk. Especially since they are under many different financial watchdogs and laws and the EU.
They are in process of an IPO at that moment they started buying shares from that point on, but they still sell shares and CFDs right now
yup. Either way in about an hour im contacting finnish financial authorities and explain to them what the suspicions are and include a email convo i have with etoro right now.
They are going public through a SPAC my friend. I believe it is called FTCVU
True, my bad
I actually use etoro and it says very clearly in the Position screen whether it's a CFD.
When I started trading I didn't know what it was and thought it was like Options or something so I stayed well away from them.
Now it does but before it didn’t . And just like you said, people don’t know what it is
It definitely did at least since Jan/Feb 2020. A week after the blip I was looking at other stocks to swing trade and saw the CFD's then.
Do/did they explain what it is?
I used them before and really had to look for the meaning of it
I'll have a look and reply back. From what I remember they had a link to an explanation on their faq.
Right, just looked. I couldn't find a single stock that was CFD it was all ETFs. And it appears right below the position parameters, where otherwise it says 'You are buying the underlying stock'. Then underneath that it provides the extra commission amount payable for opening a CFD overnight or over the weekend.
However, you're correct in that they don't explain it, neither do they provide a link like I thought. You have to go to the menu, into Help, then click Fees.
Here they mention a Stock will be traded as a CFD if you short it or use leverage.
To actually find out more than the surface level you have to go to Support and click on the Help centre and type it into the search bar.
This exactly, hard to find and they already altered it a while ago.
But even now it says your buying the undelying stock. Which is true but the offer you leverage (before they did this automatically) and then you buy a CFD in stead
Capital.com - also CFD
CFD is a broker treating a security like a casino, turning the broker into a bookie.
They win when you lose…that’s actually it
All my shares at etoro and hargreaves lansdown ISA. Should I be concerned?
I believe ISA are different type of accounts where they actually purchase, but you can always check with them
I am the same Etoro and HL ISA. I have no idea. Brain is as smooth as a bowling ball. But just letting you know your not the only Ape with this set up.
Just ask your broker! ISA should be different.
Does EToro have ISA?
No, I am sure they don't have ISA.
Etoro has CFD as well as shares, just look in your account or ask them
Will do, thanks!
If Etoro fails you're only covered up to €20,000 (EU) and £85,000 (UK)
It seems that your comment contains 1 or more links that are hard to tap for mobile users.
I will extend those so they're easier for our sausage fingers to click!
[Here is link number 1 - Previous text "t&c"](https://www.etoro.com/customer-service/terms-conditions/)
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Any Canadian apes know what wealth simple uses? I heard pfof wasn’t legal in Canada so should I assume wealth has real shares for me?
CFD is legal everywhere but the US. It has nothing to do with PFOF.
Want to know for sure? Look up your broker and ask them
Okay cool thanks I will! I’m still pretty smooth brained so I’m trying to learn!
Banned in US
True, added it to earlier comment. We have a lot of non-US apes though. Myself included
But brokers have to mark them as CFDs. When they promote is as stock / security and sell you a CFD this is fraud.
Not only not marking them, also not explaining what an CFD is. Making people think they buy actual stock. Look through the comments 1 or 2 people have opened their eyes. A win for the community
Exactly and as it seems apes bought the "stock" and got a CFD and when they now want to transfer their shares, e. G. Fidelity can't find them because TDA et al sold none but CFDs and eToro just saying we can't transfer your shares anywhere because they don't have any shares. And now those apes have serious issues with tranafering since they have nothing to transfer. I hope there is a workaround because closing those positions to open new ones in CS is shit because they can use this to kick thr can for another day.
Workarounds are impossible for CFD, only the broker can buy the required shares.
Etoro screwed a lot of us. It also lowers the top of the MOASS, since no share needed to buy back
Sorry for layout issues, on my phone
I have some in an ISA with IG so would they be CFDs?
ISA should be different. Just ask your broker!
Would like to know the answer they give you
Yeah I'll have to get round to it when I get abit of time, il save this post for later
Anyone knows if DeGiro uses CFDs?
No CFD, but they have an American custodian.
De Giro won’t even lend out shares but I guess the custodian does
Citibank is above DeGiro and I dont trust citibank for a cent.
True, but that’s not DeGiro’s fault per se
I just fucking wanna know if my shares are safe and real lol. Especially with the small insurance of only 20k if DeGiro goes bankrupt.
Ik heb er ook nog 50 staan, ik heb er vertrouwen in
Do you know the american custodian for gme?
I'm with XTB which does both cfds and cash accounts. All my shares are in cash account. Transferred in 5 days. Life is good.
Added still because they have CFD as well
Big shit right here hidden under 100 up votes.
Upvote for visibility
If you use leverage you have CFDs, I if you don't then you have shares. Very simple.
Not true actually. Even without leverage
This is factually not accurate. The number of TDA posts showing that their DRS was delayed because of "reasons" is all the proof I need.
Also, the fact that my cost basis is still fucked up from January. RH never bought shares. That's CFD.
report it !
FYI, CFD is illegal in the US.
One of the good bans…..US uses internalizers
Swings and roundabouts. Pfof is illegal in Europe.
Add CMC for europe.
After reading a comment yesterday about this it gave no meaning having CFDs anymore.
Going for real shares now. (YES I sold GME CFDs)
Remindme! 4 hours
Ape from chile here, i know i have cfd's i asked my etoro rep ans they only work with cfd's on my country. I've been searching for a new broker but there aren't any good ones besides the international ones that need crazy capital requirements to open an account. And if I want to change I have to sell and buy again in the other broker and that terrifies me.
There must be a lot of shares available from Al those Brazilian puts. 😂
When you don’t have any other option, you must but I would keep on searching for a different option.
Pardon if I'm wrong here, but can you not Xfer over to IBKR, then DRS?
No, CFD are not shares so no transfer
Omg- so in Brazil/Chile, they *never can even own actual securities in a US company?* Just can buy exposure to security value? It's funny, none of the brokers there say that up front I'm guessing, as it seems like CFD is an overall surprise to many of us that are relatively new to trading.
This is why I write this
That’s not as simple as that. CFDs are instruments with a purpose, not just a simple replacement for securities, so to speak.
Brokers that allow it list it as a separate account as they have a different nature (like Spread Bets).
They do have a purpose, especially for those large commodities trades
You say buy and hold will never impact the price of an CFD share. But selling them does? Or not? Just wondering if it would make sense to sell an CFD share after buying them via Computershare or IBKR and had them transfered to CS. Might be better that way… 🤔?
You’re mixing it up. I am saying that CFD is not a share.
So buying and selling CFD contracts does not impact price. What you need to do I can’t say since I don’t give advice and we should all make our own choices.
My choice is to buy at IBKR (IEX routing) and transfer partly towards CS