FAQ
- New Accounts
- Customer Service
- Trading
- Auto Trading
- Can I open an account online?
- Yes. Investrade's online account opening process is quick and easy. Open an individual, joint, or retirement account online. Click here. [back to top]
- How long does it take to open an account?
- Upon receipt of completed paperwork, accounts are typically opened within 24-48 hours. [back to top]
- Is there a minimum to open an account?
- There is no minimum to open a domestic account. A minimum of $5,000 equity in any combination of U.S. Dollars and/or U.S. exchanged traded securities is required for international accounts. [back to top]
- Where do I mail my account application?
- Mail completed and signed account paperwork to:
Investrade Discount Securities
Attn: New Accounts
950 Milwaukee Ave., Ste. 102
Glenview, IL 60025 [back to top]
- How do I fund my account?
- Accounts may be funded by check, ACH, wire transfer, stock certificate or account transfer. Money orders, third party checks, credit card checks, home equity line checks and starter checks are not accepted. Some checks may require a 3 business day hold. Cashier's Checks must have the remitter's name electronically printed directly on the check by the issuing bank. Wired funds are usually available upon our receipt of the funds. See How to Fund Your Account for more details. [back to top]
- Do you open international accounts?
- Yes. We accept unsolicited accounts from non-U.S. residents from the following countries: Austria, Australia, China, Germany, Ireland, Luxembourg, Mexico, Netherlands, New Zealand, Singapore, South Africa, Switzerland and the United Kingdom (England, Northern Ireland, Scotland and Wales). However, acceptance of international accounts is at our discretion and may require additional processing time. [back to top]
- Are there additional margin or spread trading account requirements for international accounts?
- International Margin and Spread Trading accounts require an additional security deposit of $5,000.00 that will be held in your account separately from the funds you will be using for trading and will not count towards your buying power or equity figures. The funds will be reflected in your monthly statements. Margin is required in order to be approved for spread trading. For International accounts that wish to trade uncovered puts, the security deposit will be an additional $10,000.00. [back to top]
- How do I transfer an account to Investrade?
- When completing your account paperwork, include the Account Transfer Form and a copy of your most recent statement for the account you wish to transfer. [back to top]
- How long does it take to complete an account transfer?
- A full automated customer account transfer (ACAT), will typically take 5 to 7 business days. A non-ACAT (partial transfer) or manual transfer may take up to 3 weeks to complete. [back to top]
- What types of IRA's do you offer?
- U.S. clients may choose from Traditional, Rollover, Roth, Coverdell, SEP, Simple, Individual 401(k), Profit Sharing Plans and Money Purchase Plans. [back to top]
- Can I trade options in my IRA?
- Yes. We allow prudent trading of options in IRA's based on an investor's individual suitability. Option trading in IRA's includes call buying, put buying, cash-secured put writing, spreads, and covered calls. Unsecured (naked) puts and naked call transactions are not permitted in IRA's. We reserve the right to determine what trading is suitable for an IRA. [back to top]
- What type of money market accounts do you offer?
- We have several money market options available. See Money Market Funds for a list of available funds and prospectuses. [back to top]
- Do you offer check writing and debit cards?
- Yes. We offer free check writing services through our Priority Account. Our Priority Plus Account offers check writing and the Visa® check card; annual fees apply. See Cash Management for more information. [back to top]
- Is there a minimum balance requirement for check writing and debit cards?
- Yes. You must have at least an initial balance of $5,000 in cash and/or securities. [back to top]
- What type of account protection do you offer?
- See Account Protection for details. [back to top]
- What is a Non-Professional Subscriber?
- The phrase “Non-Professional Subscriber” means any natural person who is neither: (a) registered or qualified in any capacity with the SEC, the Commodities Futures Trading Commission, any state securities agency, any securities exchange or association, or any commodities or futures contract market or association; (b) engaged as an “investment advisor” as that term is defined in Section 201 (11) of the Investment Advisors Act of 1940 (whether or not registered or qualified under that Act; nor, (c) employed by a bank or other organization exempt from registration under federal or state securities laws to perform functions that would require registration or qualification if such functions were performed for an organization not so exempt. The phrase “Professional Subscriber” means all other persons who do not meet the definition of Non-Professional Subscriber. [back to top]
- How do I contact Customer Service?
- You may call 1-800-498-7120 or email support@investrade.com. (Mon. - Fri. 8:00 a.m. - 8:00 p.m. EST) [back to top]
- What are your Customer Service hours?
- Mon. - Fri. 8:00 a.m. - 8:00 p.m. EST [back to top]
- Where do I mail checks for deposit?
- Investrade Discount Securities
Attn: Customer Service
950 Milwaukee Ave., Ste. 102
Glenview, IL 60025
Money orders, third party checks, credit card checks, home equity line checks and starter checks are not accepted.
Include an IRA Deposit Slip when making deposits into an IRA account. [back to top]
- To whom do I make checks payable?
- Please make all checks payable to our clearing firm, Penson Financial Services, Inc. Include your account number in the memo line of the check. Important Note: Cashier's Checks must have the remitter's name electronically printed directly on the check by the issuing bank. Money orders, third party checks, credit card checks, home equity line checks and starter checks are not accepted. [back to top]
- How do I deposit a stock certificate?
- 1. On the back of the stock certificate, enter Penson Financial Services, Inc. as the attorney to transfer the stock.
2. Each person registered on the stock certificate must sign the back exactly as printed on the front, including initials, suffix, etc.
3. Date the certificate.
4. In pencil, write your account number on the front of the certificate in the upper right hand corner.
Please mail the certificate(s) to:
Investrade Discount Securities
Attn: Customer Service
950 Milwaukee Ave., Ste. 102
Glenview, IL 60025
If you prefer, you may submit an Irrevocable Stock Power Form in place of completing the above information on the actual stock certificate. Please note you must still mail the stock certificate to Investrade for processing.
Important Note: Investrade does not accept for deposit or process restricted stock.
See Account Funding Options for more information. [back to top]
- How do I wire funds into my account?
- Domestic Wires
JP Morgan Chase Bank
ABA 021000021
F/A Penson Financial Services
Acct #066-6-00030
FFC: Customer Acct # and Customer Name
International (USD)
Chase Manhattan Bank, NYC
Swift # CHASUS33
FAO Penson Financial Services
Acct # 066600030
FFC: Customer Acct # & Customer Name
See Account Funding Options for more information. [back to top]
- How do I wire transfer funds out of my account?
- Complete either the Domestic Wire Request or the International Wire Request form.
Mail your request to:
Investrade Discount Securities
Attn: Customer Service
950 Milwaukee Ave., Ste. 102
Glenview, IL 60025
Alternatively, you may fax the request form to 1-877-367-8466.
If the wire request is for $50,000 or more, it must be notarized. Wires must be sent to same-titled accounts. No third party wires may be processed.
See Account Funding Options for more information. [back to top]
- May I place check, wire, and incoming/outgoing ACH requests online?
- Check, wire, and ACH requests may be conveniently placed online through the Cash Management System. Log in to your account, go to Accounts and click the Cash Management tab. You may request checks, incoming and outgoing ACH transactions, and outgoing wire requests. Requests placed prior to 2:00 PM EST will be processed the same business day. Requests for overnight delivery incur a $20.00 charge. See How to Fund Your Account for more details.
- Do you process restricted stock?
- No. We will not accept deposit or process restricted stock under any circumstances. If we receive restricted stock, it will be returned to the sender. [back to top]
- What are your margin requirements?
- Margin maintenance ranges from 30%-100% depending on the particular stocks in the account. See our Margin Rates for more information.
See Margin Requirements for more information. [back to top]
- Is there a concentrated account margin requirement?
- An account will be considered concentrated if the margin market value of any one position is greater than the total margin account equity. In this instance, an account will be coded as "concentrated" and every margin position will be held at a minimum margin requirement of 10% greater than non-concentrated accounts.
See Margin Requirements for more information. [back to top]
- What is a pattern day trader?
- "Pattern Day Traders" are defined as those customers who day trade (buy and sell the same position within the same trading day) four or more times in five business days.
See Day Trading Margin Rules and Day Trading Risk Disclosure for more information. [back to top]
- Do you have a telephone number for international customers?
- Customers outside North America can reach us at 1-847-375-6080.
See Contact Us for information. [back to top]
- Do you offer a referral program?
- Yes. Refer your friends and associates and receive a $50 commission credit to be used towards future online trades. To receive the $50 commission credit the referred account must be funded with at least $2,000, for a minimum of 30 days, before the credit is issued to your account. Please make sure the referred account indicates your complete name on the front of the account application in the “How did you hear about us?” field. If opening an account online, please email a referral credit request to support@investrade.com. [back to top]
- Do you offer extended hours trading?
- Yes. Extended hours trading is available from 8:00 a.m. to 6:00 p.m. EST. You may place an extended hours trade online by selecting Extended Market as the Time in Force.
See Extended Hours Trading for more information. [back to top]
- What types of option trading do you offer?
- • Buy-writes
• Spreads
• Combos
• Straddles/Strangles
• Butterflies/Condors
• Iron Butterflies/Iron Condors
• Rollouts
Please note that you may not be approved for all of the strategies listed above. Option rates apply to each leg of spread orders. [back to top]
- What is the requirement for writing uncovered options?
- Initial requirements for naked puts are 20% of CMV minus out-of-money amount or 10% of Strike, whichever is greater times the multiplier times the quantity. Maintenance requirements for naked puts are 20% of CMV minus out-of-money amount or 10% of Strike, whichever is greater times the multiplier times the quantity plus the market value of the option. Initial requirements for naked calls are 20% of CMV minus out-of-money amount or 10% of CMV, whichever is greater times the multiplier times the quantity. Maintenance requirements for naked calls are 20% of CMV minus out-of-money amount or 10% of CMV, whichever is greater times the multiplier times the quantity plus the market value of the option.
A minimum of $.50/share (1 contract = 100 shares) will be held for any naked calls or puts.
See Margin Requirements for more information. [back to top]
- What are the minimum equity requirements for trading options?
- The minimum equity requirements are as follows:
• Spreads: $2,000
• Naked Put Requirement: $20,000
• Naked Call Requirement: $100,000
• Naked Index Requirement: $500,000
See Margin Requirements for more information. [back to top]
- What are the maintenance requirements for spread orders?
- See Margin Requirements for more information. [back to top]
- What types of stop orders are available through Investrade?
- Investrade offers Stop Market Orders, Stop Limit Orders, and Virtual Trailing Stop Orders. See Stop Orders for more information. However, we currently do not offer trailing stop orders for options. [back to top]
- What is the options expiration policy?
- Expiring long and short option positions may be closed as early as 3:00 PM EST on the last trading day prior to expiration if you do not have the funds or buying power to buy or short the underlying security. Please note that you may still get assigned even if a short option is out of the money. Therefore, if there is risk to the account, short options may be closed out even if it is out of the money. The firm may close out your positions without prior notice. We may also elect not to exercise or close the resulting stock position in the aftermarket hours on Friday or pre-market hours on Monday. [back to top]
- May I place a market order for pink sheet or bulletin board stocks?
- No, customers may place limit orders only for pink sheet and bulletin board stocks; market orders will not be accepted. [back to top]
- Do you accept deposits of equity securities traded on the Pink Sheets or OTC Bulletin Board markets?
- Investrade does not accept deposits of equity securities traded on the Pink Sheets or OTC Bulletin Board markets priced below $1.00, including but not limited to, utilizing the following methods:
1. Any form of physical certificate deposit through the Penson SPS application (Securities Processing System), the Transit System (TNST), and via mail.
2. DWAC (Deposit/Withdrawal at Custodian)
3. DRS (Direct Registration Services)
4. ACAT Transfer of Restricted Stock, except certain low-priced securities without any restrictive legend via ACAT.
Investrade reserves the right to reject any account that has a concentration of low priced securities (penny stocks). [back to top]
- What are the additional restrictions associated with illiquid securities?
- Due to the increase in costs associated with clearing illiquid securities, beginning October 1, 2011, all orders in OTCBB and Pink Sheet securities where the order quantity is greater than 10% of the 20-day average daily volume of that security will be rejected. You will be notified with a message stating: “Rejected: Order violates PFSI illiquid security policy.” [back to top]
- What types of orders must be placed with a broker?
- Foreign stock orders, as well as bond trades must be placed with a broker. There are no additional broker-assistance charges. [back to top]
- What types of quotes do you offer?
- Our web site offers delayed, real-time, and streaming quotes. If you would like to receive streaming quotes, please contact customer service at 1-800-498-7120. [back to top]
- Can orders be directed to a specific exchange?
- Most orders can be routed to a particular exchange through a broker. Broker-assisted orders are an additional $6.00. Please call our trade desk at 1-800-498-7120 for further information. [back to top]
- How do I place a bond trade?
- Bond trades must be placed with our bond desk, call 1-888-897-8133. [back to top]
- What is Auto Trading?
- As an Auto Trading customer you give Investrade the authority to automatically execute trade alerts issued by an authorized newsletter publisher of your choice, resulting in an enhanced ability to follow and place your newsletter’s trade suggestions on a timely basis. [back to top]
- How do I take advantage of this service?
- First, make sure that you have properly subscribed to a participating newsletter publisher. Then complete and submit the Auto Trade Limited Trading Authorization and Terms and Conditions agreements. Once these steps have been completed, and your account is funded, you will be ready to begin participating in Auto Trading. [back to top]
- In order to auto trade, which investment objective should I choose when setting up my account?
- Investrade Auto Trade accounts are subject to additional risks, including but not limited to, those listed in the Auto Trade Terms and Conditions. You must have your account investment objective designated as “Speculation” in order to be enrolled in Investrade Auto Trade services. Auto Trade is only offered to accounts that have designated their investment objective as “Speculation”. By signing the Investrade Terms & Conditions document, you accept, and are requesting that your account investment objective be updated to “Speculation”. [back to top]
- How do I know which service to select? Does Investrade recommend any services?
- While Investrade works with many newsletter publishers, we do not recommend one service over another. We do not have access to newsletter publisher track records or historical performance data. Our only suggestion is to inquire with multiple services to ensure that you are comfortable with the strategy and are able to fully understand the risks associated with employing said strategy. Any reputable service should provide information that you request by contacting the service directly. Proper due diligence on the subscriber’s part is extremely important. [back to top]
- Does Investrade track the performance of the newsletter publishers?
- No. Investrade does not track the performance of any newsletter publisher. Before making a decision to engage in Auto Trading, you should perform the due diligence necessary to ensure that you are comfortable with the risks associated with the methods employed by the newsletter publisher. [back to top]
- Which newsletter publishers are available for Auto Trading?
- To see our complete list of newsletter publishers, visit http://www.investrade.com/auto-trade.htm.
If you do not see your newsletter publisher listed, contact the Auto Trade Department at 1-800-498-7120 so that Investrade may determine if it is possible to establish Auto Trading with this newsletter publisher .[back to top]
- Can I participate in multiple newsletter services within one account?
- Investrade requires that customers open one account for each Auto Trade subscription. [back to top]
- Can I place my own trades in the same account I’m using for Auto Trading?
- If you wish to make trades on your own, outside of your newsletter publisher’s activity, we require you open a separate account for such trading. Please keep in mind, if you place any non Auto Trading trades in your Auto Trading account, you will be held responsible for any margin calls, fed calls, or good faith violations that are generated due to personal trading in your account. [back to top]
- Am I guaranteed to participate in every trade alert?
- The Auto Trade service is offered to you on a best efforts, not-held basis. We do our best to enter the recommendations as quickly and efficiently as possible. While we have back-up systems in place to ensure timely handling of orders, orders are subject to risk from errors of electronic systems, communications, market developments, and timing. In addition, other factors such as insufficient buying power or subscription lapses may cause missed trades. [back to top]
- Once I am set up to Auto Trade, how do I make changes to my allocation amount?
- You are welcome to change your Auto Trade allocation amount at any time by using our Auto Trading Update Form. The Auto Trading Update Form is available for download at the following address: http://www.investrade.com/acct_forms.html. [back to top]
- How do I cancel my Auto Trade service or put it on hold?
- If you desire to place on hold or cancel your Auto Trade enrollment, please complete an Auto Trading Update Form. The Auto Trading Update Form is available for download at the following address: http://www.investrade.com/acct_forms.html. Please note: Once a subscription has been cancelled, you will not be able to activate Auto Trading until you complete a new Auto Trade Limited Trading Authorization Form. [back to top]
- How do I add funds to my account?
- There are various account funding options. You may fund your account via check, by requesting incoming or outgoing electronic funds transfer (ACH) between your bank and brokerage account, wire transfer, or transferring cash and/or securities from another brokerage account. Go to http://www.investrade.com/fund-account.htm for complete instructions for each account funding option. [back to top]
- Does Investrade charge a fee for Auto Trading?
- Investrade will charge to each Auto Trade customer an Auto Trade processing fee in the amount of $1.50 per executed order, in addition to Investrade’s normal commission charges. This processing fee will only be applied to Auto Trade orders physically entered by Investrade’s Auto Trade desk. This processing fee does not apply to customers who enter their trades directly into the Investrade platform and are not utilizing the Auto Trade desk.[back to top]
