Oyster Account Type

Oyster offers three main types of brokerage accounts for investors to choose from:

• Cash Account:
• Requires full cash deposits for transactions.
• Ideal for beginning investors.
• Low-level risks, as you can only trade with the funds you have deposited.
• Margin Account:
• Allows you to borrow funds from the broker to purchase investments.
• Requires a smaller initial cash deposit, with the rest borrowed.
• Suitable for those seeking flexible trade settlements but comes with higher risks, as the broker can sell your investments to cover deficits.
• Discretionary Account:
• Permits an authorized broker to make investment decisions on your behalf without prior consent.
• Commonly used by individuals with large investment portfolios who prefer professional management.

Oyster Broker Account Opening Process

To open a brokerage account with Oyster, follow these steps:

• Choose the Account Type: Decide whether you want a Cash, Margin, or Discretionary account based on your investment strategy and risk tolerance.

• Complete the Application:

• Fill out the required application form, providing personal information, financial details, and investment objectives.
• Submit Required Documentation:
• Provide identification documents and any necessary financial statements as requested by Oyster.
• Initial Deposit:
• Fund your account according to the minimum deposit requirements for the selected account type:
• Cash Account: Full amount for intended purchases.
• Margin Account: Minimum deposit varies by broker.
• Discretionary Account: Similar to Margin Account but may have additional requirements.
• Review and Approval:
• Oyster will review your application and documentation. You may be contacted for additional information or clarification.
• Account Activation:
• Once approved, your account will be activated, allowing you to start trading.
• Ongoing Management:
• Regularly monitor your account and adjust your investment strategy as needed, especially if you have a Discretionary Account where your broker will manage trades on your behalf.