6 Stock Trading App Contract Gotchas
- Payment for Order Flow: HIGH Broker sells your orders to market makers. May not get best execution price on trades
- Margin Call Rights: HIGH Broker can liquidate positions without notice during margin calls. No warning before forced sale
- Trading Halts: HIGH App can restrict buying or selling during volatility. GME-style trading restrictions allowed
- SIPC Limits: MEDIUM Only $500K protected per account ($250K cash). Large accounts at risk if broker fails
- Arbitration Required: MEDIUM Cannot sue broker in court. All disputes resolved through binding arbitration
- Securities Lending: MEDIUM Broker may lend your shares to short sellers. You may lose voting rights on your own stock