Read below to find answers to the most commonly asked questions we receive as well as important disclosures and disclaimers.
FINRA Broker Check
FINRA Broker Check:
Daytrading can be extremely risky and is NOT suitable for many individuals.
Please read this before engaging in a day trading strategy. Questions? 1-888-411-1217
FINRA BrokerCheck reports for Regal Securities and its investment professionals are available at www.finra.org/brokercheck.
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. 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.
Investment Products: Not FDIC Insured. No Bank Guarantee. May Lose Value.
This is not an offer or solicitation for brokerage services or other products or services in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the securities laws or other local laws and regulations of that jurisdiction.
Securities products and services offered by Regal Securities, Inc., a registered broker-dealer, Member FINRA/SIPC.
950 Milwaukee Ave., Ste. 101 Glenview, IL 60025. 1-877-488-6534.
Symbols and price and volume data shown here are for illustrative purposes only. Regal Securities and/or its employees and/or officers may have positions in securities referenced herein, and may, as principal or agent, buy from or sell to clients. Account access, trade executions, and system response may be adversely affected by market conditions, quote delays, system performance, and other factors.
Any specific securities, or types of securities, used as examples are for demonstration purpos es only. None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security.
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 email@example.com or via mail to Regal Securities, Inc, 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.
Your account is protected by the Securities Investor Protection Corporation.
• SuccessTrader is a DBA of Regal Securities, Inc., a member of the Securities Investor Protection Corporation (SIPC). Your account assets are covered by the 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. “HTS” has purchased Excess SIPC Insurance which covers the net equity of customers’ accounts up to an aggregate of $200 million from 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 covers 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, including a brochure, 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).
Additional disclosure related to accounts trading options
• 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. The customer understands and acknowledges that 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 by calling Regal at 1-888-793-5333 or by mailing a request to Regal, 950 Milwaukee Ave., Ste. 102, Glenview, IL 60025, or at the link [http://www.optionsclearing.com/about/publications/character-risks.jsp].
• 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 my account and I have paid particular attention to the chapter entitled “Risks of Buying and Writing Options.” This statement is not intended to enumerate all of the risks involved in options. In light of the information provided by the customer on his/her account application, it may be interpreted that based on your investment experience, or lack thereof, that options trading may be more risky than investments you have made in the past. The undersigned acknowledges that I have received, read, and understood the Options Risk Disclosure documents, and agree to indemnify and hold harmless Regal Securities and its agents and representatives for the results of trading in the customer’s account in regards from, and to pay Regal and its agents and representatives, promptly on demand, for any and all losses, costs or expenses incurred in connection with the use of the services (including any debit balance) as it relates to transactions in my/our account. This authorization (including this indemnity provision) is in addition to (and in no way limits or restricts) any rights which Regal may have under any other agreement(s) with the undersigned.
• 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 firstname.lastname@example.org or via mail to Regal 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.
Business continuity plan
• SuccessTrader is a DBA of Regal Securities, Inc., a broker/dealer and member of the 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. Click on the link below for a brochure that summarizes Regal’s Business Continuity Policy.
Day Trading Risk Disclosure Statement
• You should consider the following points before engaging in a day-trading strategy. For purposes of this notice, a “day-trading strategy” means an overall trading strategy characterized by the regular transmission by a customer of intra-day orders to effect both purchase and sale transactions in the same security or securities.
• Day trading can be extremely risky. Day trading generally is not appropriate for someone of limited resources and limited investment or trading experience and low risk tolerance. You should be prepared to lose all of the funds that you use for day trading. In particular, you should not fund day-trading activities with retirement savings, student loans, second mortgages, emergency funds, funds set aside for purposes such as education or home ownership, or funds required to meet your living expenses. Further, certain evidence indicates that an investment of less than $50,000 will significantly impair the ability of a day trader to make a profit. Of course, an investment of $50,000 or more will in no way guarantee success.
Be cautious of claims of large profits from day trading. You should be wary of advertisements or other statements that emphasize the potential for large profits in day trading. Day trading can also lead to large and immediate financial losses.
• Day trading requires knowledge of securities markets. Day trading requires in-depth knowledge of the securities markets and trading techniques and strategies. In attempting to profit through day trading, you must compete with professional, licensed traders employed by securities firms. You should have appropriate experience before engaging in day trading.
Day trading requires knowledge of a firm’s operations. You should be familiar with a securities firm’s business practices, including the operation of the firm’s order execution systems and procedures. Under certain market conditions, you may find it difficult or impossible to liquidate a position quickly at a reasonable price. This can occur, for example, when the market for a stock suddenly drops, or if trading is halted due to recent news events or unusual trading activity. The more volatile a stock is, the greater the likelihood that problems may be encountered in executing a transaction. In addition to normal market risks, you may experience losses due to system failures.
• Day trading will generate substantial commissions, even if the per trade cost is low. Day trading involves aggressive trading, and generally you will pay commissions on each trade. The total daily commissions that you pay on your trades will add to your losses or significantly reduce your earnings. For instance, assuming that a trade costs $16 and an average of 29 transactions are conducted per day, an investor would need to generate an annual profit of $111,360 just to cover commission expenses.
• Day trading on margin or short selling may result in losses beyond your initial investment. When you day trade with funds borrowed from a firm or someone else, you can lose more than the funds you originally placed at risk. A decline in the value of the securities that are purchased may require you to provide additional funds to the firm to avoid the forced sale of those securities or other securities in your account. Short selling as part of your day-trading strategy also may lead to extraordinary losses, because you may have to purchase a stock at a very high price in order to cover a short position.
• Potential Registration Requirements. Persons providing investment advice for others or managing securities accounts for others may need to register as either an “Investment Advisor” under the Investment Advisors Act of 1940 or as a “Broker” or “Dealer” under the Securities Exchange Act of 1934. Such activities may also trigger state registration requirements.
• FINRA Conduct Rule 2361. Day-Trading Risk Disclosure Statement
Margin risks & disclosure
• We are furnishing this document to you to provide some basic facts about purchasing securities on margin, and to alert you to the risks involved with trading securities in a margin account. Before trading stocks in a margin account, you should carefully review the margin agreement provided by your broker. Consult your broker regarding any questions or concerns you may have with your margin accounts.
• When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from your brokerage firm. If you choose to borrow funds from your firm, you will open a margin account with the firm. The securities purchased are the firm’s collateral for the loan to you. If the securities in your account decline in value, so does the value of the collateral supporting your loan, and as a result, the firm can take action, such as issue a margin call and/or sell securities in your account, in order to maintain the required equity in the account.
• It is important that you fully understand the risks involved in trading securities on margin. These risks include the following:
• You can lose more funds than you deposit in the margin account. A decline in the value of securities that are purchased on margin may require you to provide additional funds to the firm that has made the loan to avoid the forced sale of those securities or other securities in your account.
• The firm can force the sale of securities in your account. If the equity in your account falls below the maintenance margin requirements under the law, or the firm’s higher “house” requirements, the firm can sell the securities in your account to cover the margin deficiency. You also will be responsible for any shortfall in the account after such a sale.
• The firm can sell your securities without contacting you. Some investors mistakenly believe that a firm must contact them for a margin call to be valid, and that the firm cannot liquidate securities in their accounts to meet the call unless the firm has contacted them first. This is not the case. Most firms will attempt to notify their customers of margin calls, but they are not required to do so. However, even if a firm has contacted a customer and provided a specific date by which the customer can meet a margin call, the firm can still take necessary steps to protect its financial interest, including immediately selling the securities without notice to the customer.
• You are not entitled to choose which security in your margin account is liquidated or sold to meet a margin call. Because the securities are collateral for the margin loan, the firm has the right to decide which security to sell in order to protect its interests.
• The firm can increase its “house” maintenance margin requirement at any time and is not required to provide you advance written notice.These changes in firm policy often take effect immediately and may result in the issuance of a maintenance margin call. Your failure to satisfy the call may cause the member to liquidate or sell securities in your account.
• You are not entitled to an extension of time on a margin call. While an extension of time to meet margin requirements may be available to customers under certain conditions, a customer does not have a right to the extension.
• The IRS requires Broker Dealers to treat dividend payments on loaned securities positions as a “substitute payment” in lieu of a dividend. A substitute payment is not, a “qualified dividend” and is taxed as ordinary income.
• Industry regulations may limit, in whole or in part, your ability to exercise voting rights of securities that have been lent or pledged to others.You may receive proxy materials indicating voting rights for a fewer number of shares than are in your account, or you may not receive any proxy materials.
Order Routing Disclosure
SEC RULE 606 REPORT: PERCENTAGES OF TOTAL NON-DIRECTED ORDERS ROUTED TO VENUES
• Regal Securities has prepared this report pursuant to U.S. Securities and Exchange Commission Rule 606, formerly Rule 11A(c)1-6, requiring all brokerage firms to make publicly available quarterly reports on their order routing practices. The report provides information on the routing of non-directed orders, which are any orders that the customer has not specifically instructed to be routed to a particular venue for execution.