How can I buy stocks if I can't open an account?

Question

I want to buy stocks but can't open an account with Scottrade nor Charles Schwab because of my poor credit. Their reasoning is that the account comes with a credit card to withdrawl money and check writing privileges. Anyone know of any firms where credit rating is not a criteria for opening an account? I don't want any frills I just want to invest MY money!!!

Answer 1

I agree with "A Nobody", it appears that they are very familiar with your situation from the brokers side.

You may not like what they told you but the response is correct.

The special agency that serves all major broker/dealers has your name on file, and you will have to correct it with them, either Schwab or Scottrade can help you with this,  Yes you must address it with the Compliance Department

Answer 2

Try a mutual fund company.  You should not have a problem with one.  Fidelity, T Rowe Price, Vanguard, or Royce are all three decent choices.  The first 3 have a wide variety of funds to choose from.  The last specializes in small cap value stocks.  

There is also a closed end fund that is good.  General American Investors.  They have a direct investment program.

Answer 3

There are some companies that have Direct Stock Purchase Plans.  You might try that.

Answer 4

td ameritrade with just stock trading.............

Answer 5

You can open an account with us and we do not do credit checks.

Answer 6

All major brokerage firms employ the services of a company that runs checks on any negative financial and trading/investment activities of their customers and on any negative history resulting from dealings with other broker/dealers or any regulatory problems that have been reported.

It appears that you, or someone with the same name as yours had problems with another brokerage firm involving the payment of monies to the firm, or with the issuance of checks for payment and their account was liquidating and closed.

Brokerage firms DO NOT check the credit rating of their customers, so the fact that you have a poor credit rating is not the primary reason that you can not open an account..

Also verification is made as to the mailing address provided, the social security number given when opening an account, or any foreign involvement with banks or countries that are not acceptable by the US Government as defined by The Office of Foreign Asset Control (OFAC)

It could be that you, or someone with the same name as yours had problems with their dealings with a foreign bank that has not been approved by our Government or have been involved with the movement of monies that were not done in a legal manner

Many people have accounts with Scottrade and/or Schwab, but they do not have or requested credit cards for the withdrawal of monies from their brokerage account nor are credit card an account requirement.

A poor credit rating is the least of your problems, either someone using your name or has the same name as you has been involved in practices that are not acceptable by the securities industry.

You should contact, in writing, the Compliance Department of either Scottrade and/or Schwab for details of you being denied an account.

Answer 7

i started with zecco they have no credit checks.....still use it, still very happy. only ones with no fee for stock trades, and no minumums.  it took me some time to see that most of my gains were lost to the fees i paid to actually buy stock and sell it....all the others will charge you fees for trading, but compare and see for yourself!

http://friends.zecco.com/r/a7a2877caab81...