Frequently Asked Questions

From funding your account to trading futures, we've got your
questions covered. Find the answers you need here.

Simply click on any of the questions to view the answer, or if you want to review the whole list, just scroll down the page.

Opening An Account

Is there a minimum amount required to open an account?
We have no minimum deposit required to open an account; however, the account must have enough buying power to pay for a trade before it is placed. Please review your trading strategy and fund the account to the appropriate level. Again, no minimum is required to open a cash account, but a $2,000 minimum is required to maintain a margin account.
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How do I transfer an account into optionsXpress Australia?
An Account Transfer Form will need to be completed and returned to us with a copy of the most recent statement showing the title of the account, the account number, and an asset list. A signed account transfer form is required for each account being transferred to us. For more detailed information on transfers, please see the Account Transfer FAQs.
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Why do I have to disclose personal information to open an optionsXpress Australia account?
Due to regulatory requirements and the United States government's efforts to fight terrorism and fraud, U.S. brokerages have been required to obtain, verify and record information about persons who open accounts and certain individuals related to them, including account signatories (in the case of entity accounts) and persons authorized to trade on behalf of accounts (LTAs).
For more information please see the following FINRA document (PDF).
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What are the requirements when I provide a certified copy of a government photo ID?
All three of the following requirements must be met when providing a certified copy of a photo ID:
  • Valid non-expired government ID
  • Evidencing nationality or residence
  • And bearing a photograph or similar safeguard
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What is the difference between a cash account and a cash/option account?
The "Cash Account" does not permit options trading. The "Cash/Options" account will allow options trading, but only fully-paid-for options, like long calls or puts, cash secured puts, spreads, etc.
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What level of options trading will I be approved for?
Clients will be authorized to trade options after being reviewed based on experience and financial background among other criteria. Accounts will receive one of the following option trading levels:
Trading Level Basic Definitions
  -1 0 1 2 3 4 5
Trading Disabled x            
Trading Stocks / Bonds / Mutual Funds   x x x x x x
Covered Call Writing / Short Stock Sales     x x x x x
Buying Calls and Puts / Covered Put Writing       x x x x
Debit Spreads         x x x
Credit Spreads / Equity Put Writing           x x
Naked Equity Call Writing / Naked Index Put & Call Writing             x
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How are accounts protected?
We are a member of SIPC, the Securities Investor Protection Corporation, which protects against losses caused by the financial failure of the broker-dealer, but not against losses resulting from depreciation in a security's value. Your optionsXpress Australia accounts are protected by the Securities Investor Protection Corporation (SIPC), up to $500,000 (including up to $100,000 for cash claims).
Additionally, optionsXpress Australia at its own initiative, and at no additional cost to you, has secured excess SIPC coverage offering your account additional account protection beyond SIPC's limits. optionsXpress Australia' excess SIPC policy covers in the aggregate up to $100,000,000 each and every loss, subject to a maximum limit of $24,500,000 per customer, $900,000 of which may be cash.
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If I open an account online, do I still need to send in paperwork?
optionsXpress Australia does not currently have a paper application. The initial account process begins online and will prompt you to print out and sign the application at the end. Please note that optionsXpress Australia may request additional information, such as a photo ID, to set up your account. On October 1st, 2003, new U.S. government regulations came into effect requiring that we verify your identity.
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Can I fax or email my account paperwork?
Most of our account documents are accepted via fax. Certain forms may require originals:
Document Requirements
Document Name Fax & Email Acceptance
   
Accounts - General  
Account Overview (Account Application) Accepted
Account Transfer Forms (ACATs) Accepted
Non-ACAT Transfers Not Accepted
Affidavit of Domicile Accepted
Birth Certificate Accepted
Death Certificate Accepted
Divorce Decree Accepted
Identification Cards (Photo IDs) Accepted
IRS W-8 Accepted
IRS W-9 Accepted
Letter of Instruction (LOI) & Letter of Authorization (LOA) Accepted
Letters Testamentary Accepted
Margin and/or Option Updates Accepted
Marriage License Accepted
Statements (for account transfers) Accepted
Transfer on Death Agreement Accepted
Business - Entity Accounts  
Articles of Incorporation Accepted
Corporate Resolution Accepted
Trust Agreement Accepted
Trust Certification / ERISA Accepted
Cashiering  
Bank Statements Accepted
Check Writing Application Accepted
Letter of Authorization Accepted
Limited Power of Attorney (LTA) & Full Power of Attorney (FPA) Accepted
Stock Power of Attorney Not Accepted
Verification of Deposit Accepted
Retirements Accepted
5304 - SIMPLE Not Accepted
5305 - E (for Coverdell Education Savings accounts) Accepted
5305 - SEP Accepted
Coverdell Education Savings Accepted
Designation of Beneficiary Accepted
IRA Distribution Form Accepted
Roll-Over Certification Accepted
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What types of accounts do you offer?
The three main types of accounts available for trading at optionsXpress Australia are cash accounts, margin accounts, and futures accounts.
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When will an account be ready for trading?
An account is ready to trade when the account number and appropriate trading level has been assigned, and funds and/or assets have settled in the account. Accounts are generally opened within one or two business days of our receipt of the signed new account application documentation.
It is important to note that while funds from an incoming bank wire, cashier's check, or bank draft check are made available the next business day after they've been deposited, personal checks and ACH deposits are subject to a three business day hold. The cut-off for any deposit is 12:00 PM Eastern. Please see the Transfer Funds FAQs for more information.
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