FINRA Broker Check
FINRA BrokerCheck reports for Regal Securities and its investment professionals are available at brokercheck.finra.org.
Trading Disclosures
Day trading can be extremely risky and is NOT suitable for many individuals. Please read the Day Trading Risk Disclosure Statement before engaging in a day-trading strategy.
The information on this web site is for discussion and information purposes only. All accounts accepted at the discretion of Regal Securities, Inc., which accepts customer orders only on an unsolicited basis, and does not make any recommendations regarding any security or securities product with the possible exception of orders executed by our full-service bond desk. Nothing contained herein should be considered as an offer to buy or sell any security or securities product.
Investment Products: Not FDIC Insured. No Bank Guarantee. May Lose Value.
Account Protections
Your account is protected by the Securities Investor Protection Corporation (SIPC). Success Trader is a DBA of Regal Securities, Inc., a member of SIPC. Account assets are covered by SIPC, which protects customers of its members up to $500,000, with a limitation of $250,000 on claims for cash balances. Additionally, our clearing firm, Hilltop Securities, Inc., has purchased Excess SIPC Insurance which covers the net equity of customers' accounts up to an aggregate of $200 million from an underwriting syndicate at Lloyd's of London. The customer securities component, which restricts coverage with respect of any one customer, is a maximum of $25,000,000 with the aggregate coverage of cash set at $900,000. SIPC and Excess SIPC cover accounts of the member firm in the event of a member's bankruptcy and insolvency. Coverage does not apply to losses due to market fluctuation or any decline in market value of your securities. For additional information regarding SIPC coverage, please contact SIPC at (202) 371-8300 or visit www.sipc.org.
Anti-Money Laundering Policy
To help the government fight the funding of terrorism and money-laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. This notice answers some questions about our firm's Customer Identification Program (CIP).
Day Trading Margin Rules
The New York Stock Exchange (NYSE) and the Financial Industry Regulatory Authority (FINRA) have filed amendments to NYSE Rule 431 and NASD Rule 2520 with the Securities and Exchange Commission (SEC) which increase margin requirements for active security traders. As a result, effective August 27, 2001, all accounts identified as pattern day traders will be required to maintain a minimum of $25,000.00 in equity at all times. Pattern day traders whose equity falls below the $25,000.00 requirement must deposit the funds necessary to meet the equity minimum before normal trading can resume.
Pattern Day Traders (PDT)
Under the amendments, "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. In addition, if SuccessTrader knows or has a reasonable basis to believe that a client is a pattern day trader, the customer must be designated as a pattern day trader immediately, instead of delaying such determination for five business days.
Summary of Rule 431
A pattern day trader is defined as any customer who executes four or more day trades within five business days, provided the number of day trades is more than 6% of the total trades in the account during that period. Any accounts engaging in pattern Day Trading activity are subject to a minimum equity requirement of $25,000. Pattern Day Trading accounts with less than $25,000 in equity will not have any buying power until the minimum account equity of $25,000 has been met. The minimum equity must be in the margin type. The sale of an existing position from the previous day and subsequent repurchase is not considered a day trade. Day trading buying power for equity securities will be 4 times the NYSE excess as of the close of business on the previous day, and the time and tick method of calculating Day Trading is acceptable. If an account has an outstanding Day Trading margin call, Day Trading buying power will be reduced to 2 times the NYSE excess, and the time and tick calculation method cannot be used while a Day Trading margin call is outstanding. The aggregate method (using the total of all day trades) will be used. If an account fails to meet a Day Trading margin call by depositing additional funds within 5 days, Day Trading buying power will be reduced to 1 times NYSE excess for a period of 90 days, or until the call is met. Pattern day traders will be prohibited from utilizing cross guarantees to meet Day Trading margin calls or to meet minimum equity requirements. Deposits of funds to meet minimum equity requirements or to meet Day Trading margin calls must remain in the customer's account and cannot be withdrawn for a minimum of two business days. The time and tick method will not be used for day trades executed away from Hilltop Securities, Inc.
Direct Access Trading
Option rates apply to each side of spread orders. Option strategies involve multiple purchases; therefore your transaction costs may be significant for option strategy trades. Options involve risk and are not suitable for all investors. Prior to trading options, you must be approved for options trading and read the Characteristics and Risks of Standardized Options. A copy may also be requested via email at rcorso@regalsecurities.com or via mail to Regal Securities, 950 Milwaukee Ave., Ste. 102, Glenview, IL 60025. Online trading has inherent risks due to loss of online services or delays from system performance, risk parameters, market conditions, and erroneous or unavailable market data. Foreign stock orders are $39.00. Customers must maintain a minimum of $25,000 in equity in order to use Sterling Trader Pro and the DAS/Web and DAS/ PRO platforms. Short option day trades executed by pattern day traders (PDT) will be subject to naked requirements unless an intraday hedge exists. If the option is classified as "hedged" or "strategy," the greater of the net premium of the strategy requirement will be charged. The following strategies qualify as an intraday hedge for the purpose of day trade calculations: Debit spreads, Credit spreads, Box spreads, Long and short butterflies including calendar butterflies, Calendar spreads, Condors including calendar condors, Long and short iron butterflied including calendars, Covered calls and puts. Money market funds are not applied towards calculating day trade buying power. Please contact us to have money market funds journaled to the margin type prior to the effective date if you would like to use all funds to calculate day trade buying power. Also, please note it is necessary to shut off sweeps to money market upon trade settlement in order to use all available funds to day trade without interruption. This request must be in writing with a signature. Direct Access Trading involves additional fees and risk.
Increased Volatility Risk
Volatility refers to the changes in price that securities undergo when trading. Generally, the higher the volatility of a security, the greater its price swings. There may be greater volatility in Extended Hours Trading than in regular market hours. As a result, your order may only be partially executed, or not at all, or you may receive an inferior price in Extended Hours Trading than you would during regular market hours.
Options Trading Risk Disclosure
The customer understands that there are special risks associated with engaging in options transactions and that options can be volatile and could possibly subject the customer to a risk of total loss. Options are suitable only for knowledgeable investors who understand the risks inherent in such securities, have the financial capacity and willingness to incur losses, and have sufficient liquid assets to meet applicable margin requirements. The customer understands that options involve risk and are not suitable for all investors, and a current copy of the Characteristics and Risks of Standardized Options provided by the Options Clearing Corporation (OCC) may be obtained from Success Trader. The customer confirms that he/she has received and read the booklet entitled Characteristics and Risks of Standardized Options in advance of having any options transactions entered in their account.
A copy of the OCC Characteristics and Risks of Standardized Options may also be requested.
Extended Hours Trading Risks
For extended-hours trading risk, please visit FINRA Rule 2265.
REG BI Disclosure (Regulation Best Interest)
In accordance with Regulation Best Interest (or “Reg BI”), Regal Securities provides additional disclosures to supplement its Customer Relationship Summary (Form CRS). The Form CRS is available via the external PDF linked on the Legal index page.
Order Routing Disclosure (SEC Rule 606)
Regal Securities prepares quarterly reports on its order routing practices pursuant to SEC Rule 606. The report provides information on the routing of non-directed orders.
The most recent report is published by Regal Securities and can be viewed here.
Business Continuity Plan
Success Trader is a DBA of Regal Securities, Inc., a broker/dealer and member of FINRA. NASD Rule 3510 requires each member firm to create and maintain a business continuity plan (BCP). Accordingly, Regal has developed a plan to ensure that business continues to run uninterrupted during business emergencies.
A copy of our Business Continuity Plan is available on request. Contact us and we will provide it.