Trading Direct

Glossary

1099 Import

1099 tax form data may be electronically imported through the 2 most popular tax software programs. Visit the Tax Download page for details.

Account Protection

See the Account Protection page for details.

Account Transfer (full or partial)

You must have an account open at Trading Direct before the transfer can take place. To transfer either an entire account, part of an account, cash, or securities from another financial institution, the recomended method is to fill out an Account Transfer Form {PDF}, and mail (or fax to 212-619-1593) to Trading Direct for processing. (Make sure the account titles match and include a copy of your most recent statement from the firm from which you are transferring).

Notes:
- If you prefer to initiate an individual stock transfer on your own (push it to your Trading Direct account), instruct the sending firm to deliver to: DTC # 0443, Pershing LLC, F.B.O. enter your name and and trading direct account number here.
- When transferring from another broker, pink sheet, bulletin board, or grey market stocks bid less than $1 may not be accepted.  Contact us prior to submitting form. Unregistered or restricted stocks are not accepted.
- If transferring from direct registration account at a transfer agent (typically used for a DRIP Program or Employee Stock Purchase Plan, etc), which uses the DRS or DWAC transfer method, stocks bid less than $0.10 per share are not accepted. Nor are bulletin board or pink sheet stocks. With this transfer method, there may be up to a 2-week hold before the stock may be sold.

ACH Transfer

Authorization to initiate entries into the Automated Clearing House (ACH) System

By completing the ACH Agreement {PDF}, this will serve as authorization for Trading Direct’s clearing agent, Pershing LLC, to establish Electronic Transfer Instructions with your designated bank account. The electronic transfer options to establish your ACH Profile described below:

• Option A, Standing Instruction: Authorize a debit or credit to an account "On Demand". Clients shall notify Trading Direct via email or phone, in order to transfer money to or from the pre-authorized bank account.
• Option B, Periodic Distributions: Remit either principal or income distributions (dividends and interest) to the bank account on a monthly, quarterly, or annual basis.
• Option C, Periodic Contributions: Make regular general deposits to your taxable account balance, or make regular tax year contributions to your IRA.
• Option D, Frequency: Specify time frame here only if Option B or C is chosen.
• Option E, Amount: Specify dollar amount here, only if Option B or C is chosen.

Please mail completed form along with a voided check or bank statement:
TRADING DIRECT
160 BROADWAY, FL 7E
NEW YORK NY 10038

Important notes regarding ACH profiles & transfers, please read:
• Mail completed form(s) to Trading Direct. Limit 1 bank account per brokerage account. Approximate set-up time: 3 business days, upon which Trading Direct will send an e-mail notification.
• Initial Deposits: For new accounts, an initial deposit will NOT be accepted via ACH.
• If your account has little equity relative to the ACH deposit, it may take up to 5 business days before the money can be used.
• The maximum cumulative dollar amount per account for incoming deposits is $50,000 over five (5) business days.
• All ACH deposits are subject to review and will be held for up to 60 calendar days.
• The maximum cumulative dollar amount per account for outgoing withdrawals is $50,000 over five (5) business days.
• ACH Profile instructions may not be changed for 60 calendar days from the last change and/or addition.

Address Change

Please fax or mail a signed letter of authorization {PDF,5KB} to update your postal mailing address. (Address changes are prohibited without a client signature. For a joint account make sure both account holders sign.)

Please Note: If you are changing your MAILING address to a PO Box or "courtesy of", be sure to also reference your HOME street address in the letter. (Knowledge of each client’s home address is required by industry regulations, but know that mail will not be sent there. It will be sent to the designated mailing address).

Fax signed letter to: 212-619-1593.
or
Mail to:
TRADING DIRECT
160 BROADWAY, FL 7E
NEW YORK NY 10038

Bonds

If you wish to conduct a search, purchase or sell a bond or any other debt security, please call and speak to a broker at (800) 925-8566 or 212-766-0230. We do not offer this service via the Internet at this time. Please see Pricing for commission rate.

Broker Assisted Trades

If you are away from your computer and need place a trade, you can call to speak to a live broker at 212-766-0230 or 800-925-8566.($19.95 per stock trade).

Check Request

See Withdrawing Funds.

Clearing Agent

Pershing, LLC (Pershing), a wholly owned subsidiary of The Bank of New York Mellon Corporation, is a leading financial business solutions and clearing firm with 1500 clients who collectively represent more than 5.5 million active investors with over $1 trillion in global client assets.

Confirmations

See Trade Confirmations.

Contact Trading Direct

See the Contact Page.

Credit Interest

See the Pricing Page for details.

Debit Interest

See Margin Interest.

Debt Securities

See Bonds.

Depositing Funds

See Depositing Funds page.

Depositing Stock Certificate

When depositing a physical paper certificate, the name(s) on the certificate is to match the account title. (If not, please contact us prior to mailing.)

Instructions: Sign the back of the certificate, exactly as the name or names appear on the front. On the line between "Appoint" and "Attorney," write in "Pershing LLC". Write your account number on the top right.

Restrictions: Deposits of stocks bid less than $0.10 per share are not accepted.  Deposits of bulletin board, pink sheet, or unregistered stocks are not accepted. There may be up to a 2-week hold after deposit, before the stock may be sold.

Mailing Instructions: Certificates may be delivered directly to Trading Direct's clearing agent at the address below. Use US Postal Service Registered/Certified mail, or a UPS/Fedex shipping option requiring a signature.

Pershing LLC
Attn: Securities Received Dept
One Pershing Plaza, 7th Floor
Jersey City NJ 07399

For clients looking to electronically transfer stocks from another broker, transfer agent, drip program, employee stock purchase plan, etc, please see the "Account Transfer" section above.

Direct Deposit

See ACH Transfers.

DTC Transfer (incoming)

This type of stock transfer between two brokers usually takes 1 business day. To transfer a stock into your Trading Direct account, you need to provide your other broker our DTC instructions:

Deliver to Pershing LLC, DTC Clearing #0443, F.B.O Enter your Name(s) and Trading Direct account number here

(There is no fee for an incoming DTC Transfer.)

DTC Transfer (outgoing)

This type of stock transfer between two brokers usually takes 1 business day. To transfer a stock out of your Trading Direct account, you need to provide Trading Direct with your other broker’s DTC instructions. All requests must be signed and faxed to (212) 619-1593. Be sure to include all pertinent information, including your signature. There is a $20 fee per stock for outgoing DTC transfers.

Duplicate Confirmations & Statements

These are sometimes required if you work for a bank, investment firm, or other financial service companies. Check with your supervisor or compliance manager to be sure.

Electronic Documents

See Paperless Statements & Reports

Electronic Funds Transfer

See ACH Transfer.

Email Address Change

Go to Accounts...Profile...User Profile to edit your general contact email address. Go to Accounts...Profile...Document Delivery to edit your 'Paperless Statements & Reports' email address.

Federal Fund Wire

See Depositing Funds or Withdrawing Funds.

Foreign Accounts

See International Account.

Funding an Account

See Depositing Funds.

Higher Margin Requirement Stocks

In general, if the size of your position in an individual stock exceeds 20% of the recent average daily volume, it may be subject to a higher margin requirement. Click here for General Securities Requirements {PDF} list, or contact us for more information.

Interest

See either Credit Interest or Margin Interest.

International Account

Those who reside outside the USA can open accounts with Trading Direct. Visit the Getting Started: Foreign Investors page for detailed information.

International Wire

See Depositing Funds or Withdrawing Funds.

IPO’s

On the day of the offering Trading Direct encourages clients to place limit orders only. Trading Direct has the right to reject any market order. However, clients will be responsible for market orders placed before the stock begins trading in the secondary market. (Market orders executed at substantially higher opening prices may cause financial hardship for clients with limited resources.)

The date, time and price of an IPO are subject to change. Please read related news stories. You may purchase shares in an IPO, once the shares open for pubic trading only. Please use extreme care and consideration when placing an order for an IPO. Executions are not reversible. Clients will be responsible for any market or limit order placed on an IPO. IPO’s may not be shorted for the first three days after coming public.

Limited Trading Authorization

Trading Authorization limited to purchases and sales of securities and options. This form is required if anyone other than yourself or your joint partner will be placing trades in this account. Visit the Document Center-Other Documents & Forms section to obtain proper form.

Linking an Account

See User Name & Password

Linking Additional Accounts

Contact Trading Direct with your instruction to link a new account number to your existing user id.

Margin Interest

Please see Pricing- Interest Rates.

Minimum to Open/Maintain An Account

There is a $500 initial minimum balance required to open a cash account.

There is a $2000 minimum equity requirement to initiate margin trading. The requirement may be met with cash or marginable securities. In a cash account the anticipated dollar amount of the purchase must be deposited before an order will be accepted.

If a withdrawal request is made that would bring the account equity below $500, it shall be considered an intention to close the account.  Therefore all securities would need to be liquidated (or disposed of), or transferred, before the cash withdrawal request would be processed.

Money Market

see Credit Interest

Monthly Statements

Accounts are mailed monthly statements for each month there is activity. Accounts with no activity are mailed statements quarterly. Activity is defined as a transaction (purchase or sale of a security).

Please note, rather than have statements and confirms mailed, you may print your own. See the Paperless Statements & Reports for more information.

Mutual Funds

We offer access to thousands of fund choices (load and no-load).

The cut-off time to get an order in is usually 4PM eastern time, but each mutual fund company has their own specified cut-off time for an order to be accepted during the trading day and minimum investment amount. You must contact the individual fund company for specific information about their funds.

Please see the Mutual Funds page for more detailed information.

New Account Choices

Account Types Offered at Trading Direct:
- Individual
- Joint
- Custodial
- IRA—Traditional, Roth, and Educational. (We do not offer 401K’s or 403B’s)
- Investment Clubs / Partnerships
- Trusts
- Corporations
- Foreign—Individual and Joint only. (No foreign corporations please)

Please see the Document Center for specific account application forms.

Non-Transferrable Security (deemed such by DTCC)

Securities deemed non-transferrable by DTCC (Depository Trust and Clearing Corp), will be removed from your account.

Options Trading

Unless specifically authorized for advanced options trading, Trading Direct permits buying call and put options and selling of covered calls. (Generally, selling a call to open for a stock in which you own at least 100 of the underlying shares). All purchases of options must be paid for in full prior to accepting an order.

Option transactions may be either to "Open" or to "Close".

Open—To open or create a new position. You may buy to open a long position or sell a covered call to open a covered call position (assuming you are long the underlying stock.)

Close—To close out an existing position. You may sell to close out a long position or buy to close out a covered call (short) position.

Notes: With some exceptions, when entering a limit price under $3, orders may be placed in nickel ($.05) increments. Over $3, use dime ($.10) increments.

At expiration, option positions which are $.01 or more in the money, will be automatically exercised (or assigned).

Order Entry Help/Tutorial

Visit the Order Entry Help/Tutorial page.

Order Restrictions

Each exchange or market place may require orders to be placed in a specific format. Below are common restrictions, which will prevent the acceptance and approval of an order.

Limit and stop orders placed unreasonably away from the market price may not be accepted. Buy stops must be placed above the last transaction price.  Sell stops must be placed below the last transaction price. Stop orders are not accepted on options. Please see "Order Entry Help" for more details.

Paperless Statements & Reports

Instead of receiving documents (trade confirms, monthly statements, tax docs, reports, and other notifications) via postal mail, you may select to receive all or some of these materials electronically.

To register, sign into your account, and click on "Go Paperless" at top right, to register.

To access, go to Communications in the top-navigation bar.

Password

See User Name & Password

Penny Stocks

Trading Direct permits buying penny stocks or stocks under $1 per share. The trading of any penny stock entails risk but there are additional considerations if the stock trades on the Bulletin Board or Pink Sheets in the Over the Counter market. The stocks in these markets are not regulated by the same rules that govern an exchange or the NASDAQ National Market. Some of the additional considerations, if you choose to trade these securities, include but are not limited to the following:
- The market makers do not have to reflect the best bid and offer by public customers.
- There could be very wide spreads between the bid and offer.
- Execution reports may have substantial delays.
- The market may be illiquid.
- The company may go bankrupt, and the entire investment may be lost.

Notes: Trading Direct reserves the right to reject any MARKET orders for stocks trading under $1.00 per share. Please place LIMIT orders for these securities. There is a 1 million share limit per order.

Power of Attorney

See above for Limited Trading Authorization.

Quotes

Unlimited 20-Minute delayed quotes are available to all registered users. Clients  receive an initial quote bank 100 free real time stock quotes. This bank will reset after an executed trade. Clients may also receive a free real time stock quote before verifying an order for submission to Trading Direct.

Real Time Quotes

See Quotes.

Rejected Orders

The following are the most common reasons why an order would be rejected:
- NOT ENOUGH FUNDS
- FUNDS ARE NOT CLEARED
- BAD STOP ORDER
- DAY TRADING/CASH ACCOUNT
- EXCEEDING DAY-TRADING BUYING POWER/MARGIN ACCOUNT
- SHORT SELL: STOCK NOT AVAILABLE TO BORROW
- INVALID ORDER ENTRY FORMAT
- MARKET ORDER ON AN IPO, PENNY STOCK
- MARKET ORDER ON AN OPTION CONTRACT WHEN THE UNDERLYING STOCK IS NOT OPEN FOR TRADING
- MARKET ORDERS FOR STOCK RECEIVED AFTER 4:00PM, BEFORE 4:02PM-TRADING
- ACCOUNT IS RESTRICTED
- LACK OF MARGIN OR OPTION APPROVAL
- ATTEMPTING TO SELL FROM THE WRONG ACCOUNT TYPE (CASH OR MARGIN) OR INSUFFICIENT HOLDINGS.
- ATTEMPTING TO EDIT AN EXPIRED DAY ORDER.

*TRADING DIRECT reserves the right to reject any order at any time.

Security of Account

The entire Investors portion (logged into an account) of the website is secure. Right click the mouse on any page, and click properties to view connection:  TLS 1.0, RC4 with 128 bit encryption (High); RSA with 2048 bit exchange.

Settlement Period

The day an order is executed is the "Trade Date". The brokerage community requires a period of time to process the transaction. That period of time is the "Settlement Period." Stock trades settle in three business days (trade date plus three business days). Option trades settle the next business day. Mutual Funds have a settlement period ranging from 1 to 3 days, which depends on the particular mutual fund company. Please refer to the prospectus or contact the particular mutual fund company for information. In a cash account, money must be deposited before an order will be accepted.

SIPC coverage

See Account Protection.

Site Map

See Site Map page.

Statements

See Monthly Statements:.

Stock Certificates

See Depositing Stock Certificates or Withdrawing Stock Certificates.

Stock Order Entry Help

Visit the Stock Order Entry Help Page for details.

Tax Software Compatiblity

1099 tax form data may be electronically imported through the 2 most popular tax software programs. Visit the Tax Download page for details.

Telephone Trading

See Broker Assisted Trade

Trade Confirmations

Each transaction is confirmed to the customer in written form. Clients are postal mailed a confirmation letter (”Confirm”) no later than the day after a trade is executed.

Clients may verify a transaction four different ways:
- Instantly on the Order Status screen
- On the History screen
- In written form on the postal mailed “Confirm”
- A second time in written form on the monthly statement.

Note: Confirmations and monthly statements will not be mailed if a client registers for Paperless Statements & Reports (Electronic Delivery).

Transfer Stock

See Account Transfer section (for a full or partial incoming account transfer from another financial institution).

User Name & Password

Contact Customer Service to verify user name and or reset your password.  To create a new user profile (ID and Password), from the login screen, click on "Register Now", and follow on-screen instructions.

Website Maintenance Window

The normal pre-scheduled server maintenance window is 3AM-5AM weekdays. During this time period, updates may be made to the server, and site access and or functionality may be limited.

Wiring Funds (Into Your Trading Direct Account)

See Depositing Funds.

Wiring Funds (Leaving Trading Direct Account)

See Withdrawing Funds below.

Withdrawing Funds

Cash withdrawals made be made 3 different ways: ACH transfer, check request, or Federal Fund / International Wire.
Note: Recent deposits may not be withdrawable for up to 60 calendar days.

ACH: For more information on ACH Transfers, see ACH section above.

Checks: To request a check from your Trading Direct account, please login to your account and go to Accounts...Asset Transfer Request, or send an e-mail to: info@tradingdirect.com. Be sure to include your name, account number and amount of the check. Check can be delivered via standard mail, or overnight carrier (for an additional fee).

Wires: To request a Federal Fund Wire (or International Swift Wire) from your Trading Direct account, please fax a completed wire transfer form (available in the Document Center). Our fax number is (212) 619-1593.

Contact your bank for their wiring instructions. The instructions should include:
- The name and address of your bank.
- Their nine digit ABA routing number (or international bank SWIFT Code, along with US Bank affiliation name and ABA number)
- Your bank account number and exact title of the bank account.
- A phone number at the bank.

Note: Third party wires are prohibited. 

Withdrawing Stock Certificates

Physical stock certificates are no longer issued. As an alternative, a DRS transfer may be enacted. This will allow an account registration to be maintained directly with the company's transfer agent.