It probably is too good to be true!
So, yesterday I stumbled across this ridiculously cheap Dutch broker (De Giro) and I immediately opened an account in order to check things out.
I am so going to close my account again.
Why? Well, reading their general terms and conditions made me rather furious. You have to sign an agreement which states that they are allowed to lend your stocks to third parties. Okay, there are other brokers who also do this. However, with this particular broker ALL RISKS are the investor’s responsibility!!! There is no insurance, your cash money isn’t safe and if the third party who borrowed your stocks won’t pay up it’s your loss!
NO FREAKIN’ WAY I am investing with these guys!
I am very content with my beloved Meesman ❤ and BinckBank is okay for our larger Vanguard transactions in euros. I’m thinking about Lynx for our dollar investments with Vanguard. These three are so much safer for buy and hold investors like ourselves.
A thorough research into finding your ideal broker is well worth your time as this case demonstrates again.