

Ask HN: How could I sell stock online - xaevir

I realize the selling of stock is highly regulated. However, is it possible to use an existing broker's api? I am thinking something like paypal but for stocks? If thats not possible, is there some other way to do this without incurring more costs than a startup could handle?
======
veyron
IB:

<http://interactivebrokers.com/>

they have matlab, java, etc. connectors

You can also work with some of the larger banks and boutique firms, either in
a DMA setting or routing through the exchange. Generally you need 100-250 to
get that solution going, and you need to use FIX or the exchange proprietary
protocols (e.g ITCH/OUCH for nasdaq)

~~~
xaevir
Or, better yet, you just taught me a new term called DMA which I can now
google and get to understand better. Are there other terms I could be googling
to find this solution?

~~~
veyron
I apologize for the jargon [I'm at work now and the markets dont close for
another 100 minutes] -- I can give you a more detailed explanation later if
you are interested.

~~~
xaevir
the reason I dont like paper trading systems is one bc without real money
transacted, I cant make money and two bc I think having some skin in the game
changes everything. But I realize after talking to you that this may be an
unrealistic dream.

~~~
veyron
I have a lot of respect for the idealism underpinning your motivation. That's
partially why I got into finance in the first place.

You can also

1) charge for the advise. Something relatively small but accessible to most
people. THAT would be a game changer :)

2) pitch the idea to fidelity or some other consumer facing brokerage. If you
have good material, brokerage companies love it.

3) fake the trades. For example, Lehman Europe [LBIE] used to allow for
infinite leverage by simulating each position (withdrawing money from the
account when clients bought, and replenishing when they sold again). So you
could do the following:

\- hold the positions that you advocate \- when people want to "buy" the
signal (buy when you say buy, sell when you say sell), then basically sell the
exposure to their account \- when people want to "sell" the signal (opposing
you), then just take a naked position. Ostensibly, if your signals are good,
then you should make money :)

I would highly recommend learning about finance via a trading job or
internship. There are a lot of subtleties involved. Not that you couldn't
learn by reading a bunch of books, but finance is highly regulated and its
important to understand all the ins and outs :)

