Trading accounts instead of EMIs

[JustAnotherNomad]

Has anyone tried to use a trading account (Swissquote, Interactive Brokers, ...) to hold cash instead of an EMI when you couldn't get a bank account?
I guess clients can't pay directly into that account, but you could probably pay from an EMI into such an account and there would be better protection than with an EMI?

 

[dohongnam]

The thing is when you need to withdraw the money, you need to withdraw using the same source that you deposited in. If the EMI blows up while your money is in the trading account, you would have no place to withdraw the money to. This is the case with most trading account I think.

 

[JustAnotherNomad]

Really? I find that extremely hard to believe. For credit card payments, sure. If only for the simple reason that it's cheaper for the merchant, not only AML.
But when you transfer money in? People close bank accounts all the time, for all kinds of reasons. And when the EMI has gone bust, it's even easier to show that it wasn't your fault.
I'm sure you can only withdraw to an account in your own name, sure. But other than that? I can't really imagine there will be many restrictions.

 

[dohongnam]

Well then I guess you should contact the broker directly to get the most accurate answer for this matter

 

[JustAnotherNomad]

My question was mostly about the protection schemes that would apply...

 

[Kris]

JustAnotherNomad said:
Really? I find that extremely hard to believe. For credit card payments, sure. If only for the simple reason that it's cheaper for the merchant, not only AML.
But when you transfer money in? People close bank accounts all the time, for all kinds of reasons. And when the EMI has gone bust, it's even easier to show that it wasn't your fault.
I'm sure you can only withdraw to an account in your own name, sure. But other than that? I can't really imagine there will be many restrictions.
Click to expand...

You are right. You can withdraw to your other account on your name. No problem with that.

 

[JohnLocke]

JustAnotherNomad said:
Has anyone tried to use a trading account (Swissquote, Interactive Brokers, ...) to hold cash instead of an EMI when you couldn't get a bank account?
I guess clients can't pay directly into that account, but you could probably pay from an EMI into such an account and there would be better protection than with an EMI?
Click to expand...

I thought the idea was good, but it's the same, these broker companies are not safer than the EMIs are. So the only thing I would think was a good alternative is a real bank account that you open at a bank with insurance for the first 100K euros.

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[Kris]

In my opinion there is a difference between keeping money with emi - russian laundromat and broker like Swissquote (I think they are owned by a bank). EMis are closed very often becasue it is used for money laundering. Brokers don't. There you can only deposit and withdraw from your own account. No third parties.
Of course the best is bank and amount less than 100k euros.

 

[Am1go]

I use Interactive brokers for storage and investment, I consider IB a very reliable broker. Swissquote suggests that you can make a cryptocurrency deposit. Does anyone know what bitcoin exchange rate is in CHF? there is a commission from 0.5 to 1% on the site

 

[rowena]

You can of course withdraw money to any account which is under your name and good brokers are 100 times safer than EMIs.

 

[HauptstadtKind]

rowena said:
You can of course withdraw money to any account which is under your name and good brokers are 100 times safer than EMIs.
Click to expand...

This statement is too absolute. It depends on the broker.
With some brokers, you need to verify the withdraw-account as a new source.

 

[rowena]

@HauptstadtKind
How is this verify proccess exactly?

@Timo
They have mc/visa.

 

[Mr Magoo]

holding money with brokers like IB and Swissquote is insured by FDIC and EU deposit guarantee scheme and holding money in that way works pretty well. IB used to give you interest on idle balance but not anymore since interest went to zero in US.

 

[HauptstadtKind]

rowena said:
@HauptstadtKind
How is this verify proccess exactly?
Click to expand...

Verification through deposit or bank records...depends on the Broker of Course

 

[Dal Johansson]

Admin said:
I thought the idea was good, but it's the same, these broker companies are not safer than the EMIs are. So the only thing I would think was a good alternative is a real bank account that you open at a bank with insurance for the first 100K euros.
Click to expand...

@Admin could you elaborate? As far as I know the brokers are subject to the banking protection of their jurisdiction or their custodian's jurisdiction.