Frequently Asked Questions

Accounts —

Account Types

Score Priority offers the following accounts:

  • Individual
  • Joint with Rights of Survivorship
  • Joint with Tenants in Common
  • Custodial
  • Traditional IRA
  • Roth IRA
  • Rollover IRA
  • SEP IRA
  • Corporate
  • Limited Liability Company (LLC)
  • Partnership
  • Sole Proprietorship
  • Trust

An individual account is a standard investment account with only one owner. Upon death of the account holder, the account assets are transferred to the designated beneficiary/beneficiaries.

 

A JTWROS account is shared by two or more individuals, each account holder owns an equal portion of ownership in the account. Upon the death of one account holder, the account ownership is passed on to the surviving account holder(s).

 

A JTIC account is shared by two or more individuals, with each account holder owning an equal or different percentage of the assets. Upon the death of one account holder, the specified percentage of the total account ownership is passed through the decedent’s estate.

 

A custodial account is managed by a legal guardian or parent for the benefit of a minor. The amount invested is kept in the account until the minor reaches the age of the majority. A custodial account may be the Uniform Gift to Minors Act (UGMA) and Uniform to Transfer to Minors Act (UTMA). All states permit UGMA accounts. Vermont and South Carolina do not allow UTMA accounts (as of 2020).

 

Traditional IRAs let individuals contribute pre-tax dollars to a retirement investment account, which can grow tax deferred until retirement withdrawals occur (at age 59 ½ or later). In most cases, contributions to traditional IRAs are tax deductible. When the individual withdraws money from the account during retirement, those withdrawals are taxed at their ordinary income tax rate. The IRS restricts the amount that one may add to a traditional IRA each year, depending on age. The contribution limit for the 2021 tax year is $6,000 for savers under 50 years of age. For people aged 50 and above, higher annual contribution limits apply via a catch-up contribution provision, allowing for an additional $1,000 (or a total of $7,000). 

 

Account holders can take distributions as early as age 59 ½. Starting after age 72, account holders must take required minimum distributions (RMDs) from their traditional IRAs. Funds removed before full retirement eligibility incur a 10% penalty (of the amount withdrawn) and taxes, at standard income tax rates. There are exceptions to these penalties for certain situations.

 

For more information, please click here.

 

A Roth IRA is funded with after-tax dollars; the contributions are not tax deductible. Once you start withdrawing funds, the money is tax free. Contributions can continue to be made at any age, as long as the account holder has earned income. The account holder can maintain the Roth IRA indefinitely; there are no required minimum distributions (RMDs) during their lifetime. A person can’t contribute to a Roth IRA if he/she makes too much money. In 2021, the limit for singles is $140,000 and for married couples, $208,000. In 2021, the contribution limit is $6,000 a year unless you are age 50 or older, in which case, you can deposit up to $7,000.

 

For more information, please click here.

 

A rollover IRA is a transfer of funds from a retirement account into a traditional IRA or a Roth IRA. The purpose of a rollover is to maintain the tax-deferred status of those assets. IRA rollovers are subject to some strict rules including the transfer of funds to be made between accounts.

 

A simplified employee pension (SEP) is established by an employer or a self-employed person. The employer is allowed a tax deduction for contributions to each eligible employee’s plan on a discretionary basis. Eligibility requirements for contributors include a minimum age of 21, at least three years of employment, and a $600 compensation minimum. The SEP IRA allows employers to skip contributions during years when business is down. Contributions made by employers cannot exceed the lesser of 25% of an employee’s compensation or $58,000 in 2021. WIthdrawals from SEP IRAs in retirement are taxed as ordinary income. 

 

For more information, please click here.

 

A corporate account is opened in the name of an incorporated business; a corporate account is managed by its officers or authorized traders.

 

An LLC is a business structure allowed under state statutes in the U.S. where the owners are not personally liable for the company’s debt or liabilities. Regulations vary from state to state. LLCs are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship. LLCs may elect not to pay federal taxes. Profits and losses are listed on the personal tax returns of the owner(s) or they may choose a different classification, such as a corporation.

 

A partnership account is established by two or more persons in which each person has equal liability. The account holders may or may not have a written agreement on the rights and obligations each one has in the partnership account. A tax identification number is required to open a partnership account.

 

A sole proprietorship is an unincorporated business that has just one owner who pays personal income tax on profits earned from the business. A sole proprietorship has no separate legal existence or identity beyond that of the sole proprietor. Sole proprietorship accounts may be called “Doing Business As” or “DBA” accounts and reference “Doing Business As” or “DBA” in the account title.

 

A trust account is a legal arrangement through which funds or assets are held by a third party (the trustee) for the benefit of another party (the beneficiary). The beneficiary may be an individual or a group. Ownership of the assets must be transferred to the trust. The trustee has a fiduciary duty to consider the best interests of the beneficiaries first in any decisions. The trustee is responsible for annual tax returns and may be required to file regular accountings at the request of beneficiaries, depending on state law. All distributions to the trust beneficiary and other related expenses must be paid from the trust account.

 

Accounts —

Account Requirements

Apply for an account through our online account application by clicking on the yellow “Apply Now” button.

 

Depending on the type of account you choose, different requirements apply. Please refer to the questions below for further information.

 

The Per-Trade Plan is our basic pricing plan. Each commission costs $2.50 per trade on the Score Priority Trading Platform, plus an additional $0.50 per option contract. For more details, please click here.

 

The minimum balance required to begin trading under the Per-Trade Plan is $2,500.

 

There is no monthly fee for the Per-Trade Plan.

 

If your account drops to between $2,000-$2,499, commissions will be charged at a rate of $4.00 per trade on Score Priority Plus and commission-free on Score Priority Trading Platform. If your account drops below $2,000, you will be unable to open new positions.

 

If your account is $2,500 or more, commissions will be charged at a rate of $2.50 per trade on Score Priority Plus and will be commission-free on Score Priority Trading Platform. 

 

Please refer to the following commission structure:

 

$2,500 or more    
  • $2.50 per trade (Score Priority Plus)
  • $0.00 (Score Priority Trading Platform)

 

$2,000 – $2,499
  • $4.00 per trade (Score Priority Plus)
  • $0.00 (Score Priority Trading Platform)

 

Under $2,000

Trading capabilities cease until equity is raised.

 

The minimum balance required to open an options account varies depending on your option level.

 

The minimum balance required to open a margin account is $2,500.

 

The minimum balance required to open an options account varies depending on your option level.

 

The commission for options trading is $0.50 per option contract.

 

 

OTCBB and Pink Sheet stocks must be DTC/CNS eligible and close at $0.05 or higher. Stocks that settle foreign will not be permitted. Score Priority does not allow incoming account transfers that contain OTC securities.

 

The available option levels are:

 

Level 1 Covered Call Writing

Level 2 Covered Call Writing, Buying Puts & Calls

Level 3 Covered Call Writing, Buying Puts & Calls

Level 4 Covered Call Writing, Buying Puts & Calls, Writing Equity Puts

Level 5 Covered Call Writing, Buying Puts & Calls, Writing Equity Puts, Writing Uncovered Equity Calls

Funding —

Account Funding

You may fund your Score Priority account through a wire, ACH, or account transfer. Please find funding instructions on My Account.

 

No, funding your account with a credit card, a debit card, PayPal, traveler’s checks or credit card checks will not be accepted.

 

Automated Clearing House (ACH) transfers are electronic money transfers, bank to brokerage, processed through the ACH Network. There is no fee associated with your Score Priority account to establish this relationship or to transfer funds. The process is paperless — no lost checks, no postage charges. Please note that ACH relationships cannot be established for IRA accounts at this time.

 

It takes approximately 5-7 business days to verify your bank account information upon receiving your ACH activation form. Please submit the ACH activation form via document upload or scan and email it to newaccounts@scorepriority.com.

 

Transferring funds via ACH takes approximately 2-3 business days. There is a hold of 5 business days to trade with funds deposited via ACH. You may have this hold lifted by submitting proof that the funds have cleared your bank account to info@scorepriority.com or fax +1 (646) 381-3624. ACH deposits may be withdrawn via ACH after 10 business days of the original deposit. Otherwise, ACH deposits may be withdrawn via check, wire or ACAT after 60 calendar days have passed from the original date of deposit.

 

There is no cost involved with an ACH deposit, withdrawal, or activation. To set up an ACH, please submit the ACH activation form via document upload or scan and email it to newaccounts@scorepriority.com. Please allow 5-7 business days for your initial ACH activation to be set up.

 

There is a $100.00 minimum for all ACH requests in/out.

The daily maximum for inbound requests is $25,000.00, and the daily maximum for outbound requests is $100,000.00.

 

No, we do not accept money orders or Western Union for deposits.

 

Deposits by a third party will not be accepted under any circumstances. We do not send third party transfers.

 

Domestic wire transfers can take up to 24 hours provided, all account information is correct on the wire transfer. Incorrect or missing account information may delay the credit of your wire transfer to your Score Priority account.

 

Foreign wire transfers originating from a non-U.S. bank generally take 24 to 48 hours (though this may vary depending on the country of origin) for our clearing firm to receive and post funds. Incorrect or missing account information may delay the credit of your wire transfer to your Score Priority account.

 

There is no charge for regular mail check requests or ACH withdrawals. Normally, accounts are charged $80 when they transfer an account (ACAT out). The fee to transfer out and effectively close an IRA is $80. Physical and/or foreign settlement fees apply.

 

Order Types & Securities —

Order Types & Securities

A market order is an order to immediately buy or sell a stock or other assets at the best available price, effective for same day orders.

 

A limit order is an order to buy or sell a security or other assets at a specified price or better. A buy limit order is executed at the limit price or lower, and a sell limit order is executed at the limit price or higher.

 

A stop order is an order to buy or sell a security or other assets when a specified price is reached. Once the specified price is reached, the order becomes a market order. A buy-stop order is entered at a stop price above the current market price. A sell-stop order is placed below the current market price.

 

A combination of a stop order and limit order. Once the specified stop price is reached, the order becomes a limit order to buy or to sell at the specified limit price or better.

 

A GTC order is an instruction to buy or sell a security or other assets that remains in force until the order executes, expires at a specified time, or cancels.

 

Yes. Trading during extended hours is subject to a commission surcharge of $0.003 per share. This fee applies to orders executed on the Electronic Communication Network (ECN). Extended pre-market trading is available between 7:05 a.m. – 9:30 a.m., EST. Extended after-hours trading is available between 4:00 p.m. – 8:00 p.m. EST.

 

Locate the “Orders: widget on the Score Priority Trading Platform. You will see a cancel button next to each open order. Press the cancel button to submit a request to cancel your order.

 

Open equity orders may only be changed between 9:30 a.m. and 3:30 p.m. (Eastern Time) during normal market hours. Outside these times, you must cancel your order and enter a new order. From the Score Priority Trading Platform, locate the “Orders” widget. In order to modify the order, click on the “Replace” button, located in the “Replace” column. Please note that all order change requests are subject to prior fills, including fills not yet displaying on the system. New quantity represents the total number of shares including shares already filled by the order being changed.

 

GTC (good-till-canceled) orders remain active for 90 days or until canceled or executed. GTC orders cannot be canceled after hours; GTC orders may only be canceled during market hours.

 

No, there is no charge to cancel an order. Please note, however, if the order has already been filled, even partially, then the order will be charged a commission for the portion that was filled.

 

There is no charge to cancel and replace an order. Please note, however, if the old order has already been filled, even partially, then that filled order will be charged a commission. Please also note that if the new order replacing the canceled order is filled, then the new replacement order will also be charged a new commission once it begins to be filled.

 

At Score Priority, you may trade in stocks, ETFs, options, mutual funds, and OTC (over-the-counter) stocks.

 

Yes. Clients can place trades in ETFs trading on U.S. exchanges.

 

Margin requirements for non-leveraged ETFs are the same as those for regular stocks. Leveraged ETFs are held at a 100% requirement.

 

If the foreign issue settles in and is listed over-the-counter in the U.S., you will be able to trade the security through our systems.

 

You can trade both preferred stock and class shares. Preferred share issues are denoted by a trailing .PR indicator, with or without an additional letter indicating a further specification of the shares. For example, the following symbols denote preferred shares: AF.PR DXG.PRA Class shares are indicated by a period before the class specifier. For example, to get a quote for Berkshire Hathaway Class B shares, enter BRKpB.

 

Accounts —

New Accounts

Please allow 1-2 business days upon receipt of your application for your account to be open. We will send you an email notification regarding your account approval status.

 

U.S. citizens, U.S. residents and foreign citizens are welcome to open a Score Priority account. You must be at least 18 years of age to open an account.

 

Citizens who reside outside of the United States are welcome to apply. 

 

Due to changes to investment regulations in non-U.S. jurisdictions, citizens of certain countries may not be able to open accounts. Certain foreign accounts may also be limited to certain offerings (i.e. no margin.) For more information, please contact newaccounts@scorepriority.com.

 

We are prohibited from opening accounts for residents of the following countries:

 

  • Afghanistan
  • Bosnia & Herzegovina
  • Central African Republic
  • Cuba
  • Democratic Republic of the Congo (formerly Zaire)
  • Guyana
  • Iran
  • Iraq
  • Laos
  • Libya
  • Nigeria
  • North Korea
  • Somalia
  • Syria
  • Uganda
  • Vanuatu 
  • Venezuela
  • Yemen

 

An accredited investor is an individual or business entity that is allowed to trade securities that may not be registered with financial authorities. They are entitled to this privileged access by satisfying at least one requirement regarding their income, net worth, asset size, governance status, or professional experience. The regulations for accredited investors vary from one jurisdiction to the other and are often defined by a local market regulator or a competent authority. In the U.S., the definition of an accredited investor is put forth by the Securities and Exchange Commission (SEC) in Rule 501 of Regulation D. 

 

To be an accredited investor, a person must have an annual income exceeding $200,000 ($300,000 for joint income, with a spouse) for the last two years with the expectation of earning the same or a higher income in the current year. The income test cannot be satisfied by showing one year of an individual’s income and the next two years of joint income with a spouse. A person is also considered an accredited investor if they have a net worth exceeding $1 million, either individually or jointly with their spouse. The SEC also considers a person to be an accredited investor if they are a general partner, executive officer, or director for the company that is issuing the unregistered securities. 

 

An entity is considered an accredited investor if it is a private business development company or an organization with assets exceeding $5 million. Also, if an entity consists of equity owners who are accredited investors, the entity itself is an accredited investor. However, an organization cannot be formed with the sole purpose of purchasing specific securities. If a person can demonstrate sufficient education or job experience showing their professional knowledge of unregistered securities, they too can qualify to be considered an accredited investor. In 2016, the U.S. Congress modified the definition of an accredited investor to include registered brokers and investment advisors. 

 

 

The term “wholesale investor” is defined in the Financial Markets Conduct Act 2013 (the Act). People sometimes refer to wholesale investors as “eligible investors” or “accredited investors.” 

 

If you meet the criteria for one or more of the categories below, you are considered to be a wholesale investor in New Zealand:

  • You’re an “eligible investor” because you have sufficient knowledge and experience dealing in financial products that enables you to assess the merits and risks of the transaction. Eligible investors are required to certify that they are an eligible investor by completing the Snowball Effect Eligible Investor Certificate NZ and having it certified by an independent lawyer, accountant, or financial adviser (unless you meet one of the other criteria below).
  • Your net assets, combined with the assets of entities you control, exceeded $5 million for the 2 most recent financial years, or the total turnover of you and the entities you control exceeded $5 million for the two most recent financial years.
  • You own, or at some time during the last 2 years have owned, a portfolio of “financial products” of a value of at least $1 million. Financial products include debt securities, equity securities, managed investment products, and derivatives.
  • You have, during the last 2 years, carried out 1 or more transactions to acquire “financial products” where the amount payable under those transactions (in aggregate) is at least $1 million and the other parties to the transactions were not associated with you.
  • Your principal business is investing in financial products.
  • Your principal business is providing  financial adviser service in relation to financial products.
  • You’re in the business of trading in financial products on behalf of other people.
  • Within the last 10 years you’ve been employed in an investment business and, for at least 2 years during that 10-year period, you participated in the investment decisions made by that investment business.
  • You are a financial advisor in New Zealand and hold, or operate under, a Financial Advice Provider (FAP) license.
  • You’re investing $750,000 or more into the company.

 

If you meet the criteria for one or more of the categories below, you are considered to be a wholesale investor in Australia:

  • You are a Sophisticated Investor, or;
  • You provide the following certificate signed by a qualified accountant from the past two years before engaging with Snowball Effect stating:
  • You have net assets of AUD$2.5million or;
  • You have a gross income of the last 2 financial years of at least AUD$250,000 per annum
  • You control gross assets of at least AUD$10 million, or;
    A person who has or controls gross assets of at least AUD$10 million (including any assets held by an associate or under a trust that the person manages)
  • You intend to invest more than AUD$500,000 in a single offer, or;
  • You are a Professional Investor.
    You provide the following certificate to Snowball Effect, stating you meet one of the following:

    • An Australian Financial Services Licensee
    • A body regulated by APRA, other than a trustee of a superannuation fund, an approved deposit fund, a pooled superannuation trust or a public sector superannuation scheme
    • A body registered under the Financial Corporations Act 1974
    • A trustee of a super fund, approved deposit fund, pool superannuation trust, or a public sector superannuation fund where the fund, trust or scheme has net assets of AUD$10 million
    • A person that controls at least AUD$10 million (including an amount held by an associate or under a trust that the person manages)
    • A listed entity or related body corporate of a listed entity
    • An exempt public authority
    • A body corporate or unincorporated body who invests in financial products, interests in land or other investments and invests fund received (directly or indirectly) following a public offering the terms of which provided for the funds to be invested for those purposes
    • A foreign entity that, if established or incorporated in Australia, would be covered by one of the preceding paragraphs

 

 

Fees —

Commissions & Fees

If your account drops to between $1,000 and $2,999, commissions will be charged at a rate of $4.00 per trade on Score Priority Trading Platform and commission-free on the Score Priority Trading Platform. If your account drops below $1,000, you will be unable to open new positions. For U.S. Customers, If your account is $3,000 or more, commissions will be charged at a rate of $2.50 per trade on Score Priority Trading Platform. 

For Foreign Customers and Enhanced Due Diligence or High Risk Countries, see our pricing page for full details.

Please refer to the following commission structure.

For U.S. Customers:

$3,000 or more    $2.50 per trade

$1,000  – $3,000    $4.00 per trade

Under $1,000     Trading capabilities cease until equity is raised.

For Foreign Customers and Enhanced Due Diligence or High Risk Countries, see our pricing page for full details.

 

A commission surcharge of $0.003 per share is applied to orders executed on the ECN (i.e. ARCA and NSDQ). You may route orders to these destinations during market hours and extended hours trading sessions. During extended hours, pre-market orders may be placed between 7:05 – 9:30 a.m. EST and after-hours order may be entered between 4:00 – 8:00 p.m. EST.

 

The commission for mutual funds is $12.50 per trade plus any additional charges from the mutual fund. Investors should carefully consider a fund’s investment goals, risks, sale charges, and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.

 

The commission for a broker-assisted trade placed over the phone is $12.50 per mutual fund trade plus any charges from the mutual fund. Please consult the fund prospectus before investing or sending money. Investors should carefully consider a fund’s investment goals, risks, sales charges, and expenses before investing. The prospectus contains this and other information.

 

Partial fills of Good-Til-Cancel (GTC) orders will be charged full commission for each day an execution occurs. Same-day partial fills will only be charged a single commission.

 

The commission to trade ETFs online is commission-free on Score Priority Trading Platform.

 

The commission for a broker-assisted trade placed over the phone is $20.00 per ETF.

 

For stocks priced less than $1.00, add $0.003 per share for the entire order. The maximum commission per order does not exceed $5.50, with a minimum commission of $2.50.

 

The commission for broker-assisted trades placed over the phone is $20.00 per trade plus 50 cents per contract for option trades.

 

For all OTCBB and Pink Sheet securities, add $0.003 per share for the entire order. The maximum commission per order will not exceed $5.50, with a minimum commission of $2.50. Please note that additional charges such as settlement and/or transfer fees may apply to foreign and some illiquid OTC-BB or pink sheet securities. These fees are charged upon settlement of the trade. Opening transactions for stocks priced at or around $0.05 per share will not be allowed, only closing transactions will be permitted.

The foreign settlement fee, usually $75, is charged to trade securities that do not settle domestically (through DTCC). The foreign settlement fee does not apply to American Depository Receipts (ADRs). Currently, there is no list available for the securities that do not settle domestically but generally the symbols are 5 letters and end in F. However, not all 5-letter symbols ending in an F are charged the foreign settlement fee.

 

A safe-keeping fee is only charged if the security you own is not eligible to be held electronically through the Depository Trust and Clearing Corporation Company (DTCC) and the physical certificate must be held by our clearing firm, in the vault. This is generally seen with low-priced penny stocks and rarely seen with the securities traded on NYSE, AMEX, or NASDAQ exchanges. The safe-keeping fee is $50.00 charged annually.

 

A sell-out/buy-In fee is charged if you fail to meet a margin call that is past due in your account and Score Priority is forced to liquidate securities in your account to meet this past-due call. The fee is $25.

 

Order Types & Securities —

Options

The online cost to trade options is $0.50 per contract.

 

Yes, you will need to update your account with an options agreement. Please submit the Option Account Agreement via document upload or scan and email it to newaccounts@scorepriority.com.

 

To exercise an option, please submit a request from your email address on file to tradedesk@scorepriority.com. The email must include your account number, name, number of contracts to be exercised, and the option symbol to be exercised. Funds to cover the cost of exercise must be in the account prior to submitting the request, or the request will be rejected due to insufficient funds.

 

Requests to exercise options can be submitted at any point before 3:00 PM EST on the last trading day prior to the date of expiration. Please note that for a request to be processed the same day, it must be received via email prior to 3:00 PM EST. Please submit the request to tradedesk@scorepriority.com.

 

You can view your exercised options on your monthly statement and on your Score Priority trading account. To view your statements online, click on the “Reports” button located inside of the Cabinet. To view the exercise transaction, select a two-day time range after the day that you submitted the assigned request.

 

There is a $20 fee per exercise or assignment. This fee is charged on a per option symbol basis.

 

 

Given the option contract, options held short can be assigned at any time. Options are generally automatically exercised if in the money at expiration, but may not always be exercised. Long option holders can request to not exercise contracts.

 

 

There is a $20 fee per exercise or assignment. This fee is charged on a per option symbol basis.

 

 

You can view whether your options are assigned on your monthly statement and on your Score Priority online trading account. To view your statements online, click on the “Reports” button located inside of the client portal My Account. To view the assigned transaction, select a two-day time range after the day that you submitted the assigned request.

 

 

You may place a buy or sell order for limit orders. You may only place a sell order for market orders. Market orders are not supported for opening transactions of OTC securities.

 

Score Priority offers clients with cash and IRA accounts the ability to purchase calls and puts and write covered calls (if approved). Qualified margin accounts have the ability to write uncovered calls and puts (if approved). Qualified margin accounts must have a minimum of $25,000 in equity to write uncovered puts and a minimum of $100,000 in equity to write uncovered calls. Complex option strategies, including spreads and straddles, will be added in the coming months.

 

No, options cannot be borrowed against at Score Priority.

 

At this time, cash-covered puts are not available.

 

Yes. streaming option quotes are available on the Score Priority platforms.

 

Yes, these are available in the Score Priority Trading Platform.

 

IRA accounts are eligible to be authorized for Options Level 1 & 2, allowing you to purchase calls and puts and write covered call options. Uncovered option trading is not permitted for IRA accounts. In order to update your account for options trading, please submit the Option Account Agreement via document upload or scan and email it to newaccounts@scorepriority.com.

 

GTC orders remain active for 90 days or until canceled or executed. GTC orders cannot be canceled after hours; GTC orders may only be canceled during market hours.

 

Fees —

Margin

To apply for margin, please sign and submit the entire margin supplement via document upload or scan and email it to newaccounts@scorepriority.com.  Pending approval, the agreement will be processed if your margin equity is above $2,500 and once your trades have settled. To remove margin, simply email tradedesk@scorepriority.com and state that you would like to have margins removed from your account. Alternatively, send a signed and dated letter requesting for us to remove margins from your account: this letter can be faxed to 646-381-3624.

 

To short a security, you must have a margin account. To apply for margin, please sign and submit the entire margin supplement via document upload or scan and email it to newaccounts@scorepriority.com. Short sale orders may be entered through the platform, by clicking the “Sell Short” button on the order ticket. If the order is rejected, it is not on the easy-to-borrow list and must be requested via phone or chat. Please call 855-274-4934 and Score Priority will attempt to locate a hard to borrow security for you to short. Please note that short positions may be subject to hard-to-borrow or stock loan fees.

 

The margin interest rate is charged monthly but calculated on a daily basis for a 360-day year; the daily cost is based on your debit at the end of each day. You can calculate the daily cost by multiplying the amount you have borrowed by the Current Interest Rate divided by 360. Daily Cost = (Amount Borrowed) x (Current Interest Rate/360). Please click on the margin interest rate to find your current interest rate.

 

While all trades in a margin account are placed and remain in a margin account type, you may limit yourself to using only the cash balance in your account. A margin account type does not mandate that you borrow with each purchase transaction that you make. You are only borrowing when your purchases exceed your total cash.

 

 

Non-leveraged ETFs have the same margin requirement as normal stocks (National Market System or NMS securities). Leveraged ETFs are held at 100% initial and maintenance requirement.

 

If a short sale is rejected due to being hard-to-borrow, please reach Trade Desk via Live Chat from client portal (MY ACCOUNT) or Trading Platforms or by phone at 855-274-4934. Score Priority will attempt to locate a hard to borrow security for you.

 

Generally, you are issued a margin call via email. If you do not satisfy the margin call by the due date listed on the email, then securities are liquidated in your account to cover the margin call. When you do not cover the margin call yourself via liquidation, you are charged a $25 fee. For more information, please consult the Margin Calls and Flags Guidelines.

 

A sell-out/buy-in fee is charged if you fail to meet a margin call and it becomes past due. The fee is assessed if Score Priority is forced to liquidate securities in your account to meet a past-due call. Please refer to the fee schedule page for related charges.

 

Please view the margin requirements for short stocks on our pricing page.

 

Please note that trading on margin involves increased risk and could result in losses that exceed initial and/or subsequent investments. Since you are allowed to borrow funds above the amount deposited, trading on margin can result in losses greater than the initial principal invested. The decision to trade on margin must be considered carefully by each investor. Please examine the following margin agreement. Please also read additional information, including FINRA’s Margin Requirement and FINRA’s Investor Alert regarding margin.

 

Margin interest is charged to your account every month based off of a yearly rate. The rates can be found here. You may view the interest charged to your account in the client Cabinet either under Transactions History or you can view your statements under Reports.

 

In margin accounts, all stock and option trades are done in type margin. A margin account type does not necessarily mean that you are borrowing. It is possible to have a positive cash balance in your account but still trade as type margin. You are only borrowing when your purchases exceed the total cash in your account.

 

Day Trading —

Day Trading

A day trade is when a trader opens (buy/short sell) and closes (sell/buy-to-cover) a position in the same day. Please note that extended hours trading activity does count towards day trading. It is considered a day trade so long as a sell/buy to cover is executed following a buy/sell short of the same security on the same day. It is not considered a day trade if you sell/buy to cover and then buy/sell short so long as you do not close your purchase/short thereafter.

 

Please refer to FINRA’s Investor Guidance on day trading rules.

 

Day trading involves significant risk. There is a high degree of risk and losses could exceed any initial and/or subsequent investment. Please be sure to review our Day Trading Risk Disclosure Statement and our Margin Disclosure Statement. Additionally, you will find more information if you refer to FINRA’s Investor Guidance on day trading rules.

 

Please be advised that a margin account holder will be flagged as a pattern day trader if he/she executes more than three day trades within five consecutive trading days. If you are flagged as a pattern day trader and your account is below $25,000, your account will be restricted from entering new positions. If you cannot meet the minimum requirements, then you will no longer be able to day trade. If you can meet the minimum requirements to qualify as a day trading account and decide to set your account as such, there is no limit as to the number of day trades that can be placed.

 

To apply for a day trading account, deposit a minimum balance of $25,000 and complete and submit both the Margin Supplement and the Day Trading Supplement. You must maintain at least $25,000 of equity in your account.

 

You are allowed to enter a limited number of day trades in a margin account without being flagged as a pattern day trader. In a margin account, if you exceed 3 day trades in a 5 day rolling period, our clearing firm will flag your account as a pattern day trading account. Once flagged, an email notification will be issued the following morning. Accounts with balances below $25,000 will be restricted to liquidations only till the balance is brought above $25,000.

 

You need to open a margin account which can be done by completing a Margin Supplement. You need to maintain a minimum of $25,000 total account equity. You must also submit the Day Trading Supplement. Please refer to FINRA’s Investor Guidance for more information.

 

Once you are flagged as a pattern day trader, this designation cannot be reversed. From this point forward, you cannot enter any day trades while your account is below the minimum requirements for a day trader. If you would like to continue day trading, you must submit the Day Trading Supplement. Score Priority offers a one-time forgiveness, where you may submit a Change of Strategy in order to revert to a regular margin account. Your Score Priority trading platform also provides day trading count information.

 

If you fall below the $25,000 minimum in your day trading account, you will be restricted from trading until your account meets the $25,000 minimum or until you submit a Change of Strategy (can only be submitted once).

 

Yes, Score Priority does offer portfolio margining. Portfolio margining is only eligible for clients with minimum account balance of $250,000. 

 

IRAs —

IRAs

You may make a contribution to your IRA by check or wire. You must reference the deposit’s contribution year on all checks and wires, and submit an IRA Deposit Slip with each contribution.

 

There is a $50 annual IRA fee. This fee is waived for accounts which place more than 40 trades per year and maintain at least $50,000 in assets.

 

IRA accounts are eligible to be authorized for Options Level 1 & 2, allowing you to purchase calls and puts and write covered call options. Uncovered option trading is not permitted for IRA accounts. In order to update your account for options trading, please submit the Option Account Agreement. Please fax all pages of the completed form to (646) 381-3624 or scan and email it to newaccounts@scorepriority.com

 

Preferences —

Preferences

From the client portal (“My Account“), click on “Statements” followed by “Statements & Confirmations”. Make sure that you select 3 or more boxes prior to clicking on the “Save” button.

 

There are no fees for proxies, regulatory documents and corporate action notices that are sent to you by mail.

 

Regulations require that certain information be sent in physical form. This includes shareholder information, notification of changes in interest rates, and tax-related reminders. These mailings are sent at no cost to clients.

 

Taxes —

Taxes

Our client representatives are unable to provide any tax advice and if your question is viewed as such, you will be referred to your accountant or tax advisor.

 

1099 tax forms are sent to your mailing address of record unless you opt for electronic delivery of tax documents. In this case, a PDF file containing your 1099 will be posted to the client online portal. To access your 1099, go to https://myaccount.scorepriority.com/dashboard/reports.

 

Please contact a Score Priority client representative via support@scorepriority.com with any questions about your tax form. However, remember that our client representatives are unable to provide any tax advice and if your question is viewed as such, you will be referred to your accountant or tax advisor.

 

Help —

Updating

In order to change your address or contact information, you must be logged in to My Account then “change” next to Personal Information in your settings. You can update your Account Credentials, Investment and Employment Profile in addition to personal information.

 

Log in to your account.

 

Your account must be free of any securities or cash before we can close your account. Please request to close account by contacting support@scorepriority.com.

To remove securities that have no current market, you may submit a Worthless Security Form Request ($30 per security). There is a $30 fee associated with this action. Please submit either Form A (process as a journal). Certain securities, such as restricted positions, cannot be written off as worthless. For these positions, you may request a physical certificate at a minimum processing and shipping cost of $20. To determine the exact charges, please email support@scorepriority.com.

 

If you have forgotten your password, simply click “Forgot Password?” when you log in to My Account.

 

Help —

System Requirements/Troubleshooting

Your online account information is 100% encrypted by proprietary technology. Our systems use a 64-bit block cipher and support a variable key length of 32 bits to 448 bits. What this means is that a block of your personal data is taken and is scrambled with a key created from your password to make it unreadable. The data that is sent to you as our client is NEVER cached in an unencrypted format on the computer that you are using. All of the client-side decryption is handled in memory. In layman’s terms, your account information cannot be retrieved from the web browser’s cache files.

 

Our trading platform is compatible with Microsoft OS XP and Mac OS version 10.4. You will need a web browser that is Cookie, Java, JavaScript enabled, such as IE 6.0 or higher, Netscape 7.2 or higher, or Firefox for Mac version 3 and higher. The following platforms are not currently supported: IE 5 and lower, Netscape 6.0 and lower, WebTV, and Opera.

 

Our connections to the market centers for orders placed or open during normal market hours close at 4:00 PM EST. When cancelling an order outside the normal market session, you will be able to replace your cancelled order at 9:20 AM EST the next business morning.

 

One of the most common reasons for a sell order rejection is that you may already have an open order in the system. Check your Orders widget to make sure you do not have an existing order open for the security you are trying to sell. You must cancel an open order before replacing it, or use the replace button on the Positions widget.

 

If your trade is being rejected during extended hours, please make sure that your Duration is set to “Day+” and that your Destination is set to NSDQ. There are securities that do not trade after hours. Check www.nasdaq.com to find out if your stock is trading in the extended hours session. Currently, we only support AMEX, NYSE, and NASDAQ listed securities for the extended hours session.

 

Yes. Our goal is to go paperless and allow customers to have an electronic copy available at any time. To sign up for e-confirmations and e-statements, simply log into your Cabinet. Click on “My Accounts”, followed by the “Statements” button. Next, click on “Statements and Confirmations” and select the documents you wish to receive electronically. Should you wish to keep having your confirmations and statements physically mailed to you, please note there will be a postage and handling fee of $5.00 per statement and $3.00 per confirmation mailed.

 

Help —

Contact Information

Our normal office hours are Monday – Thursday, 9:00 a.m. – 6:00 p.m. EST and Friday between 9:00 a.m. – 5:00 p.m. EST, excluding market holidays.

 

Contact a Score Priority representative via live chat, email or phone. Live chat is available on the bottom right-hand corner of your screen. You may also email us at Info@scorepriority.com or calling toll-free at: 1-855-274-4934.