General Trade Account Types

General Trade offers various types of brokerage accounts tailored to meet different investor needs. The primary account types include:

• Cash Accounts:
• Investors must pay the full amount for securities purchased.
• No borrowing from the broker is allowed.
• Ideal for those who want to limit their risk.
• Margin Accounts:
• Allows investors to borrow money from the broker to buy securities.
• The securities in the account serve as collateral.
• Offers greater flexibility and the ability to trade more positions simultaneously.
• Investors should be cautious, as this type of account carries higher risks, including the potential for margin calls.
• Retirement Accounts:
• Includes various types of Individual Retirement Accounts (IRAs) that offer tax advantages.
• Common types are Traditional IRAs and Roth IRAs.
• Generally, margin trading is not allowed in these accounts.
• Joint Accounts:
• Owned by two or more individuals.
• Allows for shared investment decisions and pooled funds.
• Custodial Accounts:
• Managed on behalf of minors until they reach adulthood.
• The custodian handles trades, but the assets belong to the minor.
• Corporate Accounts:
• Opened by legal entities or corporations.
• Used for business investments and typically have fewer margin restrictions.

General Trade Broker Account Opening Process

Opening a brokerage account with General Trade involves a straightforward process:

• Research Account Types:
• Identify which type of account suits your investment needs (Cash, Margin, Retirement, etc.).
• Gather Required Information:
• Personal information such as your full name, address, Social Security number, and employment details.
• Financial data, including annual income and net worth.
• Complete the Application:
• Fill out the application form online or in-person.
• Answer questions regarding your investment goals and risk tolerance.
• Submit Identification:
• Provide a government-issued ID (driver's license or passport) for identity verification.
• Fund Your Account:
• Transfer funds from a bank account, deposit a check, or wire funds to your new brokerage account.
• Some accounts may allow for a minimum initial deposit, while others may have no minimum.
• Start Trading:
• Once your account is funded, you can begin trading securities according to your selected account type.

By following these steps, you can efficiently set up your brokerage account with General Trade and start your investment journey.