A personal investment account registered under one person's name only.
Forms needed: Account Application
Joint Tenants with Rights of Survivorship
This is a joint account in which, in the event of death of one of the tenants, the ownership of the entire account reverts to the surviving tenant.
Forms needed: Account Application, Joint Agreement - Rights of Survivorship
Joint Tenants in Common
This is a joint account in which, in the event of the death of one of the tenants, the surviving tenant is entitled to only his/her pro rata portion of the account before the death of the other tenant. Ownership is assumed to be 50/50 unless we are notified otherwise in writing signed by both joint owners.
Forms needed: Account Application, Joint Agreement - Tenants In Common
An account established by an adult for the benefit of a minor. The account must be completed in the name and social security number of the minor. Margin Trading is not available.
Forms needed: Account Application in Custodial name
Accounts must be registered in the same name of the corporation. Please include the Corporate Agreement form. At least one individual must be granted full trading authorization.
Forms needed: Account Application, Corporate Agreement, Articles and Certificate of Incorporation
Limited Liability Corporation
This account is registered in the name of the Limited Liability Company as organized under applicable state laws. At least one individual must be granted full trading authorization. A Tax Identification Number is used, not an individual Social Security Number. Equities, Opt
Forms needed: Account Application, Limited Liability Company Authorization, Articles and/or Certificate of Incorporation
You must register the account in the name of the sole proprietorship, not an individual's name. Equities, Options, and Futures trading are available.
Forms needed: Account Application, Sole Ownership Affidavit, Articles and Certificate of Incorporation
This account is registered in the name of the Partnership and in the care of the General Partner(s) of a Partnership. At least one person must be granted full trading authorization. A Tax Identification Number must be used, not an individual Social Security Number. Equities, Options, and Futures trading are available.
Forms needed: Account Application, Partnership Account Agreement, Partnership Documents
Revocable Personal Trust
Account is opened under the legal name of the trust. If a Revocable Trust, a person's Social Security number is used. Equities and Options trading are available, if allowed by the trust.
Forms needed: Account Application, Trustee Certification, Trust Agreement
Non Revocable Personal Trust
Account is opened under the legal name of the trust. If a Non Revocable Trust, a Tax ID number is used rather than a Social Security Number. Equities and Options trading are available, if allowed by the trust.
Forms needed: Account Application, Trustee Certification, Trust Agreement
This account is registered in the name of an Investment Club. A Tax Identification Number must be used, not an individual Social Security Number. Margin Trading is not available. Equities and Options trading are available.
Forms needed: Account Application, Investment Club Account Form, Investment Club Documents
A Traditional IRA is a tax-deferred retirement account for an individual that permits individuals to set aside up to $4,000 per year ($4,500 if over 50), with earnings tax-deferred until withdrawals begin at age 59 1/2 or later (or earlier, with a 10% penalty). Only those who do not participate in a pension plan at work or who do participate and meet certain income guidelines can make deductible contributions to an IRA. All others can make contributions to an IRA on a non-deductible basis. Such contributions qualify as a deduction against income earned in that year and interest accumulates tax-deferred until the funds are withdrawn. Margin trading is not available. Equities and Options trading are available.
The SEP-IRA (Simplified Employee Pension Plan) is a retirement plan for small businesses with any number of employees, but typically opened by sole proprietors with no employees. Available to sole proprietors, partnerships, corporations including sub-chapter S corporations, non-profits, and government agencies. Equities and Options trading are available.
Forms needed: Account Application, IRA Application
- Employers make all contributions to plan.
- Contributions are immediately vested.
- Employees direct the investments within their individual SEP-IRAs.
- Margin trading is not available.
A Rollover IRA is a tax-free reinvestment of a distribution from a qualified retirement plan into an IRA or other qualified plan within 60 days. Margin trading is not available. Equities and Options trading are available.
Forms needed: Account Application, Regular IRA Application
A new type of IRA, established in the Taxpayer Relief Act of 1997, which allows taxpayers, subject to certain income limits, to save for retirement while allowing the savings to grow tax-free. Taxes are paid on contributions, but withdrawals, subject to certain rules, are not taxed at all. Margin trading is not available. Equities and Options trading are available.
Forms needed: Account Application, Roth IRA Application
Margin Equity Requirements - Day trade Margin Account
All accounts, classified as day trade margin accounts, must have a minimum equity of $25,000 each day to affect day trades. If account falls below the minimum equity level, a minimum equity call will be issued and is due the same business day. While the minimum equity call is outstanding, the account will be restricted to liquidating transactions only. A client may appreciate out of a minimum equity call.
Margin Equity Requirements - Non-Day trade Margin Account
Non-day trade margin accounts must maintain a minimum ongoing balance of $2,000 in order to continue their margin status. If the account closes (marked-to-market) below $2,000, the account will be reduced to 1 x buying power. If the account balance is back over $2,000 margin buying power will be restored. You also must maintain a minimum balance of at least $2,000 at all times in order to remain on the downloadable trading software.
Margin Maintenance Requirements
Maintenance Requirement (MR) is that part of the value of your securities that is withheld from your equity when holding a security in your account. The MR is calculated by taking the Market Value (MV) of each security in your account marked to the market multiplied by the Minimum Maintenance Requirement, or the higher Penson House Maintenance Requirement Percentage, if applicable.
A day trade account status exists when the purchase and sale or sale and purchase of the same security on the same day in a single account takes place. Our clearing firm, Penson Financial Services, will look at the number of "Opening" transactions to determine the number of day trades in an account.
If a client places more than 3 day trades within a consecutive 5 day period and those trades exceed 6% of the trading activity for that period, the client is defined as a Pattern Day Trader. If a client qualifies as a Pattern Day Trader in a single margin account, then that account will be designated as a Day Trade Margin Account. A client that transacts 4 day trades within 5 business days and also has a total of 100 transactions during that 5 day period would not be deemed a Pattern Day Trader since less than 6% of that customer's total trades would have been day trades. 4/100=4%
Apex Clearing will run a query to see which customers meet the day trading definition criteria. On a daily basis, the trading activity in each individual account will be assessed to match and calculate the number of day trades for that day. This information will then be compiled with the previous 4-business day's trades to determine the status of the account. Clients will be notified by e-mail the following business day if their account meets the Pattern Day Trader requirements and is converted to a Day Trade Account.
For the purposes of Pattern Day Trading, a "security" is defined to include both equity (stock) and option transactions.
The client can advise OptionsRoute in writing (by signing the Pattern Trader Change of Strategy letter) via fax to remove the classification of a Pattern Day Trader from his/her account. Note: Clients may request to change their account classification (day trade to non-day trade) ONLY one time per 90 days.