Reg BI Disclosures
Regulation Best Interest
Form CRS (Customer Relationship Summary)
ViewTrade Securities, Inc. (“ViewTrade” or the “Firm”) is registered with the Securities and Exchange Commission (SEC) as a broker-dealer and is a member of the Financial Industry Regulatory Authority (FINRA). Brokerage and investment advisory services and fees differ, and it is important for you to understand the differences. Free and simple tools are available to research different firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing.
What investment services and advice can you provide me?
Our brokerage services include the buying and selling of securities and investment products. These include stocks, bonds, options, mutual funds, and more. If you open a brokerage account, you will pay us a transaction‐based fee, generally referred to as a commission, every time you buy or sell an investment. There is no minimum amount required to open an investment account, but we may recommend some investments which require a minimum investment.
When we provide brokerage services, we may recommend investments, or you may select them, but the ultimate decision regarding an investment strategy or the purchase or sale of an investment will be yours. Although we do not provide ongoing monitoring of your account, we will review your account before every recommendation to ensure we act in your best interest.
Through our clearing Firm we will provide you with account statements on a quarterly or monthly basis. We may be able to provide you with additional services to help you reach your goals, but you may pay more.
It is important to understand our products and services are limited as there are other account types and investment products which we do not offer that may benefit your portfolio. In addition, there could be other firms who offer the same or similar investment options or services for a lower cost.
For more detailed information on the products and services we offer, including limitations, visit https://www.viewtrade.com/l/reg-bi
What fees will I pay?
When you transact in a brokerage account, you will pay a transaction-based fee. This fee is based on the specific transaction, not the value of your account. With certain investments such as stocks or exchange-traded funds this fee is called a commission. For other investments, such as a bond, this fee might be part of the price you pay for the investment, which is also known as “mark- up” or “mark-down”. With mutual funds this fee is usually referred to as a “load” and reduces the value of your investment.
Certain investments, such as mutual funds also impose additional fees that will reduce the value of your investment over time. Also, with certain investments you may have to pay fees, such as surrender charges, when you sell the investment. From a cost perspective, you may prefer a transaction‐based fee if you do not trade often or if you plan to buy and hold investments for longer periods of time. In a brokerage account, more transactions result in us charging you more fees. Therefore, we could have an incentive to encourage you to engage in transactions. You may also pay other fees for things like account maintenance and wire transfers.
You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.
For more detailed information regarding fees and cost of your account visit: https://www.viewtrade.com/l/reg-bi
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Ask your Financial Professional
Given my financial situation, should I choose brokerage service? Why or why not?
How will you choose investments to recommend to me?
What is your relevant experience, including your licenses, education and other qualifications and what
do these qualifications mean?
Ask your Financial Professional
• Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?
What are your legal obligations to me when providing recommendations?
How else does your firm make money and what conflicts of interest do you have?
When we provide you with a recommendation, we must act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the recommendations, we provide you. Here are some examples to help you understand what this means.
In a brokerage account, when our interests’ conflict with your interests, we must tell you about them and, in some cases, take steps to reduce or eliminate these conflicts. Conflicts may result in you paying more for your investments that you would if the conflict did not exist.
In a brokerage account, we make money by buying and selling you securities and investment products. Because we get paid when you complete a transaction, we could have an incentive to encourage you to make larger investments and more frequently. Certain products, such as mutual funds, include continuing payments to us, known as “trails”. We could have an incentive to recommend investment products that include trails, even if other investments available to you have lower costs or may perform better.
We also receive shared revenue and payments from some third parties which incentivizes us to do business with them. For some products we receive higher compensation than on other products. We could have an incentive to encourage you to buy products or investments that pay us more, even if other options might be better for you. We can buy investments from you, and sell investments to you, from our own accounts (called “acting as principal”). We can earn a profit on these trades, so we have an incentive to encourage you to trade with us.
For more detailed information and a complete list of our conflicts of interest and a description of all the ways we make money, visit https://www.viewtrade.com/l/reg-bi
How do your financial professionals make money?
For brokerage accounts, your financial professional is paid a percentage of the selling compensation (commissions, markup, markdowns, loads – as described above) as well as trailing compensation.
Do you or your financial professionals have legal or disciplinary history?
Yes, you can visit Investor.gov/CRS for a free and simple search tool to research more information about our Firm and your financial professional.
You can find additional information regarding our brokerage services by visiting our website, https://www.viewtrade.com If you need any other up-to-date information or would like a copy of our relationship summary sent to you, call us at (561) 620-0306
Ask your Financial Professional
• How might your conflicts of interest affect me, and how will you address them?
Ask your Financial Professional
• As a financial professional, do you have any disciplinary history? For what type of conduct?
Ask your Financial Professional
• Who is my primary contact person? Is he or she a representative of an investment adviser or a broker- dealer? Who can I talk to if I have concerns about how this person is treating me?
Page 2 of 2
ViewTrade Regulation Best Interest Disclosures Supplement
ViewTrade Securities (“ViewTrade” or the “Firm”) is registered with the Securities and Exchange Commission (SEC) as a broker-dealer and is a member of the Financial Industry Regulatory Authority (FINRA). ViewTrade brokerage services are offered by ViewTrade Securities, Inc. Technology services are provided by Orbis Systems, Inc.
About this Document
This document is meant to provide additional information and disclosures regarding our Firm pursuant to Regulation Best Interest.
Capacity in which your Financial Professional is Acting
Your financial professional is a Registered Representative of our Broker-Dealer. You can check your financial professional at www.brokercheck.finra.org which will allow you to search for your financial professional by name. Their respective profile will show you additional information about your financial professional and you can also find additional information about our firm.
In most cases, when making a recommendation to you regarding investments in your brokerage account or directly with an investment sponsor (known as “direct business”) your financial professional is acting in his/her capacity as a registered representative of our Firm (a broker- dealer). However, there are exceptions and whenever your financial professional acts in a capacity inconsistent with this guidance, such as a representative who is also associated with an unaffiliated registered investment advisor, you will receive updated notice in writing as to the capacity in which they are acting when making a recommendation.
You should understand there are material limitations to the recommendations your financial professional provides. The Firm approves and offers only certain account types, products, and securities. There may be additional account types, products, and securities that are not offered by the Firm, which may benefit you and your portfolio. In addition, those that we do offer, may be available at a lower cost through another firm.
ViewTrade Securities, Inc. • 7280 W Palmetto Park Road • Suite 310 • Boca Raton, FL 33433 • 561 620 0306 • F 561 338 6206
Additionally, the financial professionals associated with our Firm are licensed to offer certain account types, products, and securities. In some cases, even when available through our Firm, your financial professional might not be able to recommend a particular account type, product, and/or security which may benefit you and your portfolio. You can check to see the licenses your financial professional holds, by visiting www.brokercheck.finra.org.
Requirements for You to Open or Maintain an Account with Us
Although there is no minimum investment required to open a brokerage account with us, it is important to note some products will require a minimum investment, which can be found on their investment prospectus, offering materials, or similar document.
Our Firm’s Investment Approach
The Firm uses its industry knowledge and experience to provide brokerage services to retail clients. The firm seeks to understand our clients’ unique investment profiles and recommend investments and strategies consistent with their unique financial needs. However, the products and services offered by the Firm do vary and the investment philosophy, approach, risk, and objective of these investments will too. You should review the prospects or similar offering documents thoroughly before making an investment and contact your financial professional should you have additional questions.
Material Fees, Costs, and Associated Conflicts
The Firm and its associated professionals receive compensation directly from their customers or indirectly from the investments a customer makes. This compensation takes the form of an upfront commission and/or ongoing compensation, known as trailing compensation. It is important to note that the amount of compensation can change over time. In order to receive specific and the most up-to-date information, Customers should review the respective prospectus, offering document, and/or other transaction statement. Customers should discuss with their financial professional if they have any questions regarding compensation and/or conflicts of interest.
The Firm receives selling compensation when it buys or sells a security. This selling compensation is also referred to as a commission, markup/markdown, placement fee, or sales charge/load. Typically, the Firm receives selling compensation and shares a certain percentage of the selling compensation with your financial professional.
Because the amount of selling compensation charged can vary between different securities and products, this could create an incentive to sell certain investments over others. It could also create an incentive to conduct a higher number of transactions.
Equity/ETF/ETN/CEF/Options: The Firm charges a minimum commission of $4.95 and a maximum of 5% per transaction on these types of securities. The Firm is able to waive or reduce this amount depending on the circumstances and often does.
Fixed Income and Bonds: Typically, fixed income securities, such as a corporate bonds, municipal bonds, collateralized mortgage obligations (CMO), and other types of fixed income securities are charged a markup or markdown. This means when a customer is seeking to purchase one of these securities it is first purchased by the Firm and placed in a Firm account. The Firm then sells that security to the customer for a higher price from the Firm’s account into the customer’s account. Similarly, when selling one of these securities, the Firm sells the security in the marketplace then purchases the security from the customer at a lower price in a Firm account. The maximum amount charged in the Form of a markup or markdown is typically 3%, but this amount can go higher in certain circumstances that may make the security harder to buy or sell.
Mutual Funds and 529 Plans: The Firm typically receives a maximum of 5.75% sales load on mutual funds and 529 plans, but this amount can be reduced based on several factors, including the amount invested and the share class. The sales load reduces the value of your investment. The Firm also receives trailing compensation on these investments which can vary based on the share class selected.
Annuities: The maximum amount paid for the sale of an annuity is typically 5.5% but can vary based on the type of annuity chosen and share class, when applicable.
Alternative Investments: The Firm typically receives a maximum upfront commission of 7% for the sale of alternatives investments such as hedge funds, private equity funds, real estate investment trusts (REITs), business development companies (BDCs) and private placements.
Structured Products: The Firm typically receives upfront commissions as high as 6% for the sale of some structured products.
Unit Investment Trusts (“UITs”): The maximum sales charge for a UIT will range between 1.85% and 2.5%
Insurance Products: The Firm may receive compensation for certain insurance products sold through its affiliate. The amount of upfront commission can vary greatly depending on the product type and carrier but is typically 20% to 150% of the first 12 months in premiums charged. The Firm may also receive a trail payment in the range of 1% to 25% of subsequent premiums, if any. Certain insurance companies offer financial professionals bonus payments, oftentimes called persistency or retention bonuses, based on the amount of customer assets that the financial professional has placed in the insurance company’s products
Understanding Share Classes
The amount of upfront selling compensation versus trailing compensation charged on certain products, such as mutual funds, variable annuities, or 529 investments will vary, depending on the share class selected. For mutual funds, typically, Class A shares will result in a higher upfront sales charge and lower trailing compensation, while the opposite is true for a Class C. In order to see a complete list of the share classes available for a particular investment and their respective costs, you should review the investment prospectus, offering document, and/or other transaction statement.
Product Costs and Fees
Financial professionals provide recommendations with respect to a broad range of investment products, including stocks, bonds, ETFs, mutual funds, annuities and alternative investments. Many investment products charge fees and costs that are separate from and in addition to the commissions and fees that the Firm and financial professionals receive. You can learn more about these fees and costs charged by an investment product by reviewing the investment product’s prospectus, offering memorandum, or other disclosure documents.
In addition to the commissions and sales charges described above, customers can also be charged direct fees and charges for miscellaneous account services, including, but not limited to transaction processing, transfers, margin, ticket charges, inactivity, and account maintenance. For a complete list of these charges and fees you should review your account agreement and/or fee schedule and discuss with your financial professional.
Registered Representative Specific Compensation
Registered representative’s compensation package typically includes a percentage of the selling compensation described herein. Accordingly, your sales representative could be incentivized to recommend more costly products or recommend additional transactions to obtain a greater percentage of the overall revenues.
Additional Compensation from Third Parties
In addition to the commissions and sales compensation described above, the Firm also receives additional compensation from third parties. This additional compensation could create an incentive for the Firm to recommend certain investments over others. It’s important to note, however, that the amount of compensation can change and vary between issuers and product sponsors. In order to receive specific and the most up-to-date information, Customers should review the respective prospectus, offering document, and/or other transaction statement.
Other Trailing Compensation: The Firm also receives trailing compensation, including 12b-1 fees, which are paid from certain investment sponsors for mutual funds, annuities, and alternative investments. The amount can vary based on the product and amount invested. For mutual funds, the maximum amount is typically 1.15%, while annuities and alternative investments can be as high as 2%.
Mutual Fund Concessions and Finder’s Fees: The Firm may receive additional compensation known as concessions or finder’s fees from a mutual fund company, often in cases where the sales charge is waived based on certain criteria. This amount can vary, but the maximum amount is typically 1% of the transaction. The Firm also receives concessions from investment sponsors for other types of investments. These concessions vary from product to product and are generally shared between the Firm and the financial professional. Concessions can be as high as 0.25% of the transaction amount for new issues of certificates of deposit, municipal bonds and other short-term dated bonds, up to 3% of the transaction amount for structured products, and up to 4% of the transaction amount for CEFs.
Non-Cash Compensation and Marketing: The Firm and its employees periodically receive compensation that is not transaction based from investment sponsors. This includes entertainments such as tickets to a sports game, costs associated with dinner, small gifts valued at less than $100, or marketing fees for workshops, events, and advertising.
Cash Sweeps: The Firm receives compensation from our clearing firm when a cash balance is moved to a particular fund/account which the Firm generates additional compensation from. This amount is usually not shared with your financial professional and can be as high as .5%.
Securities Lending: The Firm along with the customer, may receive a fee for securities lent to the clearing firm as part of a securities lending agreement. The amount of compensation received by the Firm will not exceed 25%.
Margin or Portfolio Line of Credit: When a customer receives margin or a portfolio line of credit, the Firm will receive a percentage of the balance lent from the clearing firm, which does not exceed .5%.
Payment for Order Flow: The Firm may receive remuneration for directing orders in securities to particular market centers for execution. The account holder understands that this remuneration, known as "payment for order flow," is considered compensation to the Firm.
Due Diligence: The Firm may receive additional due diligence or onboarding fees from a product sponsor/issuer for certain investments like real estate investment trusts (REITs) and private placements. These fees are compensation related to the cost to perform due diligence and review an investment before permitting our financial professional s to offer it to customers and is typically around $2,500, but can vary depending on the investment’s characteristics and the work involved.
Annual Conference/Symposium Sponsorship: The Firm conducts events on a periodic basis such as our annual conference/symposium. We permit 3rd parties to sponsor theseevents, including those who are associated with the investments we sell. Although the amount of compensation we charge for this sponsorship can vary based on the size of the event, the sponsorship level purchased, and other characteristics, this compensation is not transaction based or otherwise contingent on any of the investments we sell.
Investment Banking and Consulting: The Firm may provide investment banking and consulting services to third parties, including those whose securities we may recommend to you. This compensation varies significantly depending on our capacity. When our role is related to a security which we recommend, you will find additional information concerning our capacity, compensation, and conflicts in the investment prospectus, private placement memorandum, or similar offering materials and/or confirmation statements.
Additional Conflicts of Interests
Gifts and Entertainment A conflict of interest may arise when an employee receives or offers a gift, entertainment, or anything of value that creates an incentive for an employee, third party service provider, or a client to act in a certain way.
Shared Revenues and Payments from Third Parties As described above, we receive shared revenue, fees, and/or payments from our clearing firm which could create an incentive to offer or recommend certain activities and investments.
Acting in Principal Capacities We can earn a profit from buying and selling investments from our own accounts so we may have an incentive to encourage you to trade with us.
Outside Business Activities When approved, registered representatives may engage in certain outside business activities. This may include, but is not limited to: real estate, accounting, insurance, legal, and other professions. As a result, financial professional s may be incentivized to recommend certain products or services outside the scope of their relationship with the firm and they may benefit financial from these recommendations. In addition, employees may engage in personal trading or outside business activities (including board memberships/directorships) that may conflict with a client or with the firm.
Political and Charitable Contributions The firm and/or its employees charitable and/or political donations could create the perception that the company or employee is seeking a quid pro quo.
Confidentiality The Firm and its employees are periodically exposed to confidential information which may benefit us or a client.
Supervision Conflicts When a manager is also producing, he/she may be incentivized to spend more time on revenue generating activities than supervision activities.
Recommendations to other financial professionals Other professionals (e.g., lawyers, accountants, insurance agents, etc.) may be recommended to clients or engaged directly by the client on an as‐needed basis. Although not directly compensated for these referrals to outside entities, your financial professional may receive referrals from these professionals, which might incentivize them to recommend a particular professional over another.
Our Firm does not provide tax, legal or accounting advice. Accordingly, we encourage each customer to consult their own personal tax, legal and/or accounting advisers in order to understand the potential consequences associated with a particular investment strategy.
Investing in securities involves risk of loss that customers should be prepared to bear. Different types of investments involve varying degrees of risk and there can be no assurance that any specific investment or investment strategy will be profitable for a customer’s investment portfolio. Past performance is not indicative of future results. A customer should not assume that the future performance of any specific investment, investment strategy, or product will be profitable or equal to past or current performance levels. We cannot assure that the investment objectives of any client will be realized. The following is a non-exhaustive list of risks associated with investing. For additional product-specific risks, customers should review their prospectus, offering document, or similar materials and consider them carefully prior to making an investment decision.
Interest-rate Risk: Fluctuations in interest rates may cause investment prices to fluctuate. For example, when interest rates rise, yields on existing bonds become less attractive, causing their market values to decline.
Market Risk: The price of a security, bond, or mutual fund may drop in reaction to tangible and intangible events and conditions. This type of risk is caused by external factors independent of a security’s particular underlying circumstances. For example, political, economic and social conditions may trigger market events.
Inflation Risk: When any type of inflation is present, a dollar today will not buy as much as a dollar next year, because purchasing power is eroding at the rate of inflation.
Currency Risk: Overseas investments are subject to fluctuations in the value of the dollar against the currency of the investment’s originating country. This is also referred to as exchange rate risk.
Reinvestment Risk: This is the risk that future proceeds from investments may have to be reinvested at a potentially lower rate of return (i.e. interest rate). This primarily relates to fixed income securities.
Business Risk: These risks are associated with a particular industry or a particular company within an industry. For example, oil-drilling companies depend on finding oil and then refining it, a lengthy process, before they can generate a profit. They carry a higher risk of profitability than an electric company, which generates its income from a steady stream of customers who buy electricity no matter what the economic environment is like.
Liquidity Risk: Liquidity is the ability to readily convert an investment into cash. Generally, assets are more liquid if many traders are interested in a standardized product. For example, Treasury Bills are highly liquid, while real estate properties are not.
Financial/Credit Risk: Excessive borrowing to finance a business’ operations increases the risk of profitability, because the company must meet the terms of its obligations in good times and bad. During periods of financial stress, the inability to meet loan obligations may result in bankruptcy and/or a declining market value of securities.
Third Party Manager Risk: Third Party portfolio managers typically have full discretion as to how manage the model portfolio based on the objective of the model. Such discretion increases the risk that the TPM may mismanage the portfolio and client’s assets which may result in client’s loss.
Fee Schedule Effective January 1, 2021*
|ADR Creation/Cancellation||$35 plus pass thru fee from ADR Sponsor, third parties|
|DK Items||$20.00 per item|
|DK Items on DVP Trades||$25 per item plus interest (FFR+5%)|
|Domestic Voluntary Corp Actions/Reorganization||$50 per cusip per account|
|DRS Transaction||$75 per security|
|DTC Free Deliveries||$2 per security|
|DWAC||$75 per event|
|DWAC/DRS Reject||$125 per security|
|Electronic delivery of confirms/statement/tax doc||no charge|
|Electronic to physical certificate conversion||$900 per security|
|Escheatment Processing||$75.00 per account|
|Foreign Security Free Deliveries/Receives||$50 per movement|
|In-Bound ACATSs||no charge|
|Out-bound ACATs||$75 per ACAT|
|In-coming Wire Fees||no charge|
|International Voluntary Corp Action/Reorganization||$100 per cusip per account|
|Lost Certificate Replacement||3% of certificate value ($250.00 minimum)|
|Low Priced Securities||$0.0002/shr with 5% notional trade value max.|
|Margin Extensions||$25 per event|
|Margin Sell out Fee||$25 per ticket|
|Margin Rates**||< $25,000 - FFR+700 bps|
|$25,001 - $100,000 - FFR+600 bps|
|$100,001 - $250,000 - FFR+500 bps|
|$250,001 - $1 million - FFR+400 bps|
|$1 million - $5 million - FFR+300 bps|
|$5 million and above - FFR+200 bps|
|Non-transferable stock held||$10 per month per stock|
|NSCC Illiquidity Fee||$250 per trade plus 15% interest/annum on NSCC charge|
|Option Exercise/Assignment||$5 per symbol per account|
|Out-going Wire Fees - Domestic||$20 per wire|
|Out-going Wire Fees – International||$30 per wire|
|Overnight mail||as incurred pass thru|
|Paper check Draft (USD)||$5 per check|
|Stop payments on Issued Checks||$30 per check|
|Check Copies||$15 each|
|Returned Checks/ACH Wires Recalls including Amendments||$30 per transaction|
|ACH Notice of Correction||$5 per notice|
|Confirmations||$2 per confirm|
|Statements||$5 per statement|
|Paper Prospectus Mailing||$2.50 per mailing|
|TOD Account Transfer Fee||$200 per transfer|
|Physical security deposits||not permitted / $500 if exception made|
|Physical Trade Settlement – not always known upfront||$300 per security|
|Postage for Paper confirms||$2 per daily confirm|
|Postage for Paper statements, tax docs||$5 per item|
|Reg 144 Sales||fees will vary. Need to confirm in advance|
|Reorg Physical Processing Fee||$125 plus transfer agent fees|
|Reorg Wire (UDS)||$20 per item|
|Reorg Wire (International)||$30 per item|
|Restricted Transfers||$465 per security|
|Retirement Accounts||$30 annual maintenance - $60 termination|
|Returned Mail||$2 per item|
|Safe Keeping – certificates||$5 per month per account per cusip|
|Short Buy-in Fee||$25 per ticket|
|Standard Legal Transfers||$150 per security|
|Stock Borrow Fee||Fee set by market - pass thru as incurred|
|Trade Corrections||$10 per item|
*ALL FEES SUBJECT TO CHANGE WITHOUT NOTICE ￼￼￼￼￼
**ViewTrade charges margin interest based on a tiered rate structure. Margin interest rates are calculated based on the average daily margin balance and assessed monthly. Margin interest rates are subject to change at the sole discretion of the Firm and without prior notice.