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Broker says could lose license if makes a trade while I am out of Country.

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I was recently on vacation outside of the United States.  I requested my broker (full service) make some trades while I was outside the United States.  My broker claimed that if he took an order from me while I was outside the United States that his license would be terminated.  Is that a true statement?

UPDATE:  Broker stands corrected.  With no restrictions I can sell a security.  I can buy as long as security is marked unsolicited.  No harm, no foul but I'm going to drink some fine liquor at Broker's expense next time I see him.  

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never heard of this before? How will he prove you were outside? Why will you complain on him?

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Tell him you will go self service.

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*2 hours later*
Yeah, I just landed, I'm back in the US. You can do the trade now. Yes, you hear people speaking French because I'm at the airport. Tourists.
And this will be the last trade you will do for me.

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Never heard that before. Why do you need a full service broker?

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I had a stockbroker's license a long time ago. I never heard of such a rule, but that was back then. If it's true, maybe someone can dig up the regulation. In doing a quick Google, I found nothing.

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Compliance at full-service brokers puts the fear of God in them on most issues, and there's additional stuff if a customer isn't a us citizen or resident. It seems a little silly for it to matter if you're just on vacation though. I'd suggest having a discount brokerage account as well. Just place the orders yourself.

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burgerwars said:   I had a stockbroker's license a long time ago. I never heard of such a rule, but that was back then. If it's true, maybe someone can dig up the regulation. In doing a quick Google, I found nothing.
I did a long Google before posting here and found nothing.   To answer the other questions.  I told my broker I was going out of the country, so he knew.  If what my broker said is true then I am pissed at him for not telling me before I left the country.  If what my broker said is not true then I'm pissed at him for incorrect information and costing me money.  Yes, I am well aware I could tell him 2 hours later that I was in the United States.  However, he would have known that to be false and because of that he would not do the trade .Yes, I told him I would never again tell him when I went on vacation. I Told him going forward I would either lie outright or lie by omission.    Why full service? I was a Trustee for numerous accounts and responsible for assets that would later become mine and others.   Prior to any of those assets being mine, my goal (and I believe my fiduciary responsibility) was asset preservation, not growth. I knew how to trade, however, my risk tolerance was very high and I needed someone to ground me.   I have full service and discount brokerages.  Full Service is all about the service (relationship) and if I cannot trade because I am out of the country that is not Full Service.  I have done very well with some structured products that I cannot get at discount brokerage.  It is also very nice to be able to talk stock.  Something I do not feel comfortable doing with my friends....there are definitely pros and cons to both full service and discount.    

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TravelerMSY said:    I'd suggest having a discount brokerage account as well. Just place the orders yourself.
 It's possible your broker's compliance won't let them take trades from outside the US as a security / anti-fraud measure.   I have tried to do some trading from abroad.  The broker's website detected I was logging in from outside the US and froze my account.  I had to call in (not the easiest thing from some far-flung place) and get them to restore it after a bunch of ID questions.  If you're trying to do things from abroad, plan ahead and get a VPN.

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xerty said:   
TravelerMSY said:    I'd suggest having a discount brokerage account as well. Just place the orders yourself.
 It's possible your broker's compliance won't let them take trades from outside the US as a security / anti-fraud measure.   I have tried to do some trading from abroad.  The broker's website detected I was logging in from outside the US and froze my account.  I had to call in (not the easiest thing from some far-flung place) and get them to restore it after a bunch of ID questions.  If you're trying to do things from abroad, plan ahead and get a VPN.

  Yes I have a VPN.  Funny thing is he said he was worried that compliance would know I was out of the country due to me logging in with a foreign IP address.  I told him I was currently logged in under a US IP address using a VPN due to other needs for a US IP address but that an hour prior I was logged in on a foreign IP address.  He had no clue what that was.  I have to call/text or email by broker to get a trade done. 

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xerty said:   
TravelerMSY said:    I'd suggest having a discount brokerage account as well. Just place the orders yourself.
 It's possible your broker's compliance won't let them take trades from outside the US as a security / anti-fraud measure.   I have tried to do some trading from abroad.  The broker's website detected I was logging in from outside the US and froze my account.  I had to call in (not the easiest thing from some far-flung place) and get them to restore it after a bunch of ID questions.  If you're trying to do things from abroad, plan ahead and get a VPN.

I think I have placed trades with TD from abroad without using VPN. I am not 200% certain since I trade less often when on vacation.

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I know an airline pilot that lives abroad and never had an issue placing trades in the US even without VPN. Netflix, on the other hand, would block him.

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Ecuadorgr said:   *2 hours later*
Yeah, I just landed, I'm back in the US. You can do the trade now. Yes, you hear people speaking French because I'm at the airport. Tourists.
And this will be the last trade you will do for me.

  Then he'll just tell you to have your next broker make the trade.

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ZenNUTS said:   Never heard that before. Why do you need a full service broker?
  The same reason people used to call 976 numbers back in the day.

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fatwallet2099 said:     Yes I have a VPN.  Funny thing is he said he was worried that compliance would know I was out of the country due to me logging in with a foreign IP address.  I told him I was currently logged in under a US IP address using a VPN due to other needs for a US IP address but that an hour prior I was logged in on a foreign IP address.  He had no clue what that was.  I have to call/text or email by broker to get a trade done. 
 

  I guess, big data and fraud prevention issue. If you had not used a foreign IP and just called him, he would have been able to do the trade. But due to the IP log, he was not able to do the trade.
Legally speaking, a broker siting in US should be able to execute a trade. But a client siting in foreign country cant login into US website and trade(plain block on all customers).

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Certainly I've traded on the IB app while overseas. There are plenty of other places to talk stock that don't either rope in friends or coworkers, or require you to pay hefty fees for a service you may not need.

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As a full service, he should be able to provide the firms documentation stating that he can not except trades from you when you are not in the US.

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UPDATE:  Broker stands corrected.  With no restrictions I can sell a security.  I can buy as long as security is marked unsolicited.  No harm, no foul but I'm going to drink some fine liquor at Broker's expense next time I see him.

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You do know who is really paying for that fine liquor, right?

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