Equities and Futures accounts are offered by TradeStation Securities, Inc. Crypto accounts are offered by TradeStation Crypto, Inc. Show
Account QuestionsFutures TradingFor general account questions, including opening an account or trading, please visit General Account Questions. What futures contracts are eligible for reduced day-trade margin rates?The reduced intraday margin rates are available for U.S Indices and select contracts in the following sectors: Currencies, Interest Rates, Metals and Energies. Reduced margin rates are also available on select Eurex products. Please reference the Futures Margin Rates page for more detailed information. What happens to my deliverable futures position as it approaches expiration or first notice day?Please consult the appropriate exchange website or call the Futures Trade Desk if you have questions about contracts that are subject to delivery. Positions in these contracts may be liquidated by TradeStation to avoid taking physical delivery and incurring the associated fees. When could/would my futures position be offset (closed out)?A margin call occurs as soon as the account does not have sufficient equity for the contracts held; this can happen intraday or overnight. Clients should be prepared to meet a call as soon as possible. Positions can be liquidated by TradeStation at any time to meet the call and without prior notice in some cases. How does the margin charged for a trade affect the purchasing power in my account?When you establish a futures position, the full initial margin is decremented, in real time, from your account’s purchasing power. Because certain electronic indices can be traded using the day-trade rate, your account may reflect a negative purchasing power figure. Just because your purchasing power shows a negative figure, this does not necessarily mean you have a margin call. Example: Your account net worth is $3,000; you are eligible for the day trade rate and you purchase one E-mini contract. The day trade margin on one E-mini is approximately $1,406., with initial margin of $5,625/4. Your purchasing power figure will be -$2,625 ($3,000-$5,625). Example: Your account net worth is $5,000; you are eligible for the day trade rate and you purchase four E-mini NASDAQ contracts. The day trade margin on four E-mini NASDAQ contracts is $4,000, or $1,000 per contract. Your purchasing power figure will be -$9,000 ($5,000-$14,000). Please contact the Futures Trade Desk at 800.837.8951 for further details. What happens when I hold a position into the next trading session?The highest-priced traded contract, whether a long or short position, will be carried forward from one session to the next. When clearing futures trades, TradeStation matches up the lowest-priced buys and sells from the prior trading session, leaving the highest-priced remaining contract to be carried forward. This methodology has no effect on the net worth of the account, but may affect the unrealized profit/loss for the next session. Will my account automatically reset after a restriction?No. You must call the Futures Trade Desk to lift the restriction. At that time, you can discuss the reason for the restriction and how to minimize restrictions in the future. Pattern Day TradingHow is a pattern day trading account defined?Based on FINRA day trading rules, any properly qualified margin account that places four or more day trades within five business days is deemed to be a pattern day trading account. Pattern day trading accounts must maintain an account net worth (both beginning day and real-time) of at least $25,000 USD. If the account net worth falls below $25,000, trading is restricted to closing transactions until the account equity is increased above $25,000. What if my account net worth falls below $25,000 and I decide not to re-fund my pattern day trading account but want to continue trading with TradeStation?On a one-time basis, you may elect to either:
Or
If my pattern day trading Account Net Worth falls below $25,000, why can’t I just reclassify the account as either a non-pattern day trading or cash account rather than opening a new account?Once a pattern day trading account is classified as such, we do not permit you to reclassify it as another account type. Any opening transaction in a pattern day trade account could (upon its liquidation) be deemed a “day trade.” If we allowed this to happen after the account net worth falls below $25,000, your account would be subject to regulatory restrictions for up to 90 days. You must therefore either re-fund your pattern day trading account net worth above $25,000 to resume trading or open one of the “non-pattern day trading accounts” referenced above. What if my non-pattern day trading account appreciates above $25,000 in account net worth?If your non-pattern day trading account net worth appreciates above $25,000, the non-pattern day trading account limitations will still apply. If you wish to trade without those limitations, you may transfer your equity back to the original pattern day trading account. TradeStation discourages and may elect to restrict excessive transfers between pattern day trading accounts and non-pattern day trading accounts. Fully Paid LendingWho is Eligible for Fully Paid Lending?The Fully Paid Lending Program is available to all TradeStation clients who meet the following criteria:
How do I opt in to the program?You can opt in to the program by clicking .
How can I opt out of the program?You can opt out of the program by contacting TradeStation Client Services. How does it work?
Will lending out my shares affect my buying power?No. Your buying power will not be affected if your shares are lent out; you will maintain the same buying power as though you still had possession of those shares. Are my shares still mine?You maintain full economic ownership of the securities on loan. Is there a minimum account balance required?No. The standard account opening requirements apply. Are IRA accounts eligible?Yes. All equities accounts except for custodial accounts are eligible to participate in the Fully Paid Lending Program (FPLP). Can I sell the shares at any time?Yes. Although the shares are out on loan, you can sell the full or partial position at any time. Is there any cost to participate in the FPLP?No. Any eligible client can participate and earn additional income without paying extra fees for this service. How can I tell which securities are out on loan?Securities that have been lent out, and the accrued interest, will be posted on your monthly account statement. All loans are subject to market conditions. How much will I make each month?The incremental revenue you can earn on your positions can vary significantly from day to day, depending on the lendable value of your positions to counterparties that wish to borrow them. The rate you receive on the security from day to day can also change based on market conditions. Revenue is split evenly between the customer and TradeStation. Can I exercise my voting rights on my loaned-out stock?No. When your position is out on loan, you relinquish your voting rights for that stock. If you wish to vote, you must call Client Services and opt out of the FPLP a minimum of five (5) trading days before an upcoming proxy vote. Are dividends or corporate actions affected by opting in to the Fully Paid Lending Program?You lose the right to vote your shares, however, you are still eligible for all corporate actions and dividends. Dividends are paid as “in-lieu”, which are not taxed at favorable rates. At TradeStation we do not provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. How can I update my net worth and trading experience if they have changed?You can update your net worth and trading experience by contacting TradeStation Client Services. What happens in the event of default of TradeStation?TradeStation calculates and deposits cash collateral for your securities on loan daily to a custodial bank. The collateral calculation is 102% of the market value of shares on loan. In the event of default by TradeStation, you will have the right to access the collateral as described in the Master Securities Lending Agreement (MSLA). Equities/Options TradingWhat account types does TradeStation offers?TradeStation offers two types of equities accounts: margin and cash. What account types does TradeStation offers?TradeStation offers two types of equities accounts: margin and cash. Margin Accounts:
Cash Accounts:
What kind of short sale inventory does TradeStation offer?Through our securities lending division, TradeStation has built numerous relationships with various broker-dealers, giving clients access to a larger-than-normal number of equities for short sale. What is the process for trading short sale equities?If an equity is not “easy to borrow,” clients may contact the Equities Trade Desk and we will attempt to locate shares for you to short. A Trade Desk representative will enter your order on the platform. You will then be able to modify/cancel the order yourself. There is no additional charge for this service. Please visit our Contact Us page for Trade Desk hours and more information. *Short-debit fees are applicable What kinds of securities will I be able to trade electronically?As a TradeStation client, you have the ability to trade securities on all listed exchanges (Nasdaq, Nasdaq BX, NYSE, NYSE AMEX, NYSE Arca, BATS, BATS Y, EDGX, and EDGA) as well as OTCBB and Pink Sheets securities. Can I place multi-leg orders for options?TradeStation connects and routes to all of the major options exchanges and allows clients to place options orders up to and including four legs. What are the different levels of options trading approval?
How many buying power indicators do I have in my margin account(s), and how do they work?You have three buying power indicators in your margin account(s), which work as follows. Day Trading Marginable Equities Buying Power
Overnight Marginable Equities Buying Power
Option Buying Power
How will my buying power be affected when purchasing equities with a higher margin requirement or a leveraged ETF?Your day trade marginal equities buying power figure is based on the premise that the stock you are purchasing is set to the 25% day trade requirement. Certain equities, for risk-related reasons, may be set at a higher margin requirement (50%, 75%, etc.). Any equity that carries a margin requirement higher than the 25% day trade rate can be found on the Special Margin Requirements page in the TradeStation Client Center. To determine the dollar amount of a security that can be purchased or sold short, you can use the following formula: Day Trade Buying Power (DTBP) x .25/SMR% Examples:
What happens with my in-the-money options on the last trading day, before expiration, if I don’t have sufficient equity in the account to support a potential assignment/exercise?Generally, options contracts that close in-the-money by $.01 or more on the last trading day before expiration will be auto-exercised. You must ensure that sufficient buying power is in the account if you plan on being exercised or assigned. Short option holders do not have any control over when assignments will occur; only the probability of such can be estimated. No options traders can know when stocks will be halted from trading or removed from Ex by Ex-automatic “in-the-money” exercise processing at the Options Clearing Corporation (see its website for memo releases). If sufficient equity or buying power is not in the account, or if you wish to avoid taking possession of the underlying assets of an options contract that may lead to a highly margined transaction and substantial risk exposure, the options position or strategy may simply be unwound by taking market action before the expiration of trading. TradeStation reserves the right to close out any options position or deny an auto-exercise of such if an account has insufficient equity or buying power to collateralize the resulting transaction. Account owners are responsible for all options-related transactions and financial obligations in their accounts. Can I trade short in a cash account?No. Trading short is only allowed in margin accounts; therefore, if you are eligible to complete an application online, it is imperative that you apply for margin. Note: All applicants using a paper application, if qualified, will automatically be given margin permissions. If you decide that you do not want a margin account, please contact an account representative at 800.808.9336. Equities Tax ReportingWhen will I receive my tax documents from TradeStation?Consolidated Form 1099s will be made available online from the Client Center for TradeStation equities accounts beginning in the first half of February. These documents may include Forms 1099-B, 1099-DIV, 1099-INT, 1099-MISC and 1099-OID, depending on the activity in your account. What are the important deadlines for the 2019 tax year?Courtesy of the TurboTax® website January 15, 2020.
April 15, 2020.
If you need to submit your tax return later than the April 15 deadline, you must file for an extension by April 15 in order to extend your tax deadline to October 15, 2020.
June 15, 2020.
September 15, 2020.
October 15, 2020.
January 15, 2021
Can I access my TradeStation tax documents online?Yes. Once your Consolidated Form 1099 is posted, you can access it through the TradeStation Client Center:
to learn how to download your TradeStation trading activity for tax preparation. Does TradeStation offer a discount on tax software?Yes. TradeStation clients may save up to $15 on the purchase of TurboTax® software. This special offer is made possible through our partnership with Intuit, Inc. Learn more. How do I import my TradeStation account information into the installed version of TurboTax®?TradeStation clients may import equities dividend, interest and buy/sell information directly into TurboTax®. However, Section 1256 contracts, such as regulated futures contracts, foreign currency contracts or non-equity options, must be entered manually. (Scroll down for additional information regarding Section 1256 contracts.) Wash sales will be calculated after import.
to learn how to import your TradeStation trading activity into TurboTax®. How do I import my TradeStation account information into the online version of TurboTax®?TradeStation clients may import equities dividend, interest and buy/sell information directly into TurboTax®. However, Section 1256 contracts, such as regulated futures contracts, foreign currency contracts or non-equity options, must be entered manually. (Scroll down for additional information regarding Section 1256 contracts.) Wash sales will be calculated after import.
to learn how to import your TradeStation trading activity into TurboTax®. How many positions can I import into TurboTax®?Within TurboTax®, a position is represented by a record of the opening and closing information for that position. Typically, this comprises two trades (a buy and a sell). TurboTax® limits the number of records that can be imported to approximately 2,500 within the installed/desktop version and approximately 500 within the online version. While importing your account information into TurboTax®, if more than the maximum number of records are detected, you will receive notification and further instruction within the TurboTax® interface. How do I edit the TradeStation account information I imported into the installed version of TurboTax®?If you need to edit imported data:
What are Section 1256 contracts?Section 1256 contracts claim a profit/loss based on year-end value, even though the contracts haven’t been closed. Examples of Section 1256 categorized contracts include:
How do I know if I have Section 1256 contract activity to report to the IRS?If you have trading activity in your TradeStation equities account that is classified as a Section 1256 contract, it will be displayed in the Regulated Futures Contracts summary on your Consolidated Form 1099. It is important to note that if you choose to import your account data into tax preparation software, this information will not be included. To complete you tax return, you will need to enter these activities manually. How do I enter Section 1256 contract information into TurboTax®?When you import your TradeStation account information into TurboTax®, your Section 1256 transactions will not be included. To report Section 1256 contracts, simply complete the following steps within TurboTax®:
Can I import my TradeStation account information into other tax preparation software programs such as TaxAct®, H&R Block® and Tax Slayer®?Yes. Once posted, you can download tax activity for your TradeStation equities account through the TradeStation Client Center.
What are the most common tax forms I might encounter, and what do they report to the IRS?Tax DocumentAbout This DocumentConsolidated Form 1099Provides a record of reportable income and transactions for the tax year. The consolidated Form 1099 may include forms 1099-B, 1099-DIV, 1099-INT, 1099-MISC and 1099-OID, depending on the account activity.Form 1099-BDetails all sales transactions, cover short transactions, redemptions, tender offers and mergers for cash.Form 1099-DIVProvides a summary of stock or mutual fund dividends received, mutual fund capital gains distributions and any non-taxable distributions. Additionally, it details any federal and foreign tax withheld.Form 1099-INTProvides a record of interest income earned if total interest earned was $10 or more. Additionally, it details any federal and foreign tax withheld.Form 1099-MISCReports an end-of-year summary of all non-employee compensation. Common examples include royalties, rent, self-employment income and other forms of miscellaneous income.Form 1099-OIDReports original issue discounts on corporate bonds, certificates of deposit (CDs), collateralized debt obligations (CDOs) and U.S. government obligations. Cost BasisPLEASE NOTE: The information provided in this section is general in nature and should not be considered tax advice. For more information regarding tax matters, please consult your tax advisor. What is cost basis?Cost basis is the original price of an asset, usually the purchase price plus commissions. In addition, adjustments for wash sales, stock splits, spinoffs and other corporate actions may be made during the time the asset is held by a customer. Upon sale of the asset, costs for commissions and fees are deducted from the proceeds. The cost basis is used to calculate capital gains and losses, depreciation and return on investment. Why does TradeStation report cost-basis information to the IRS?As mandated by the Emergency Economic Stabilization Act of 2008, TradeStation is responsible for reporting to the IRS its customers’ cost basis and short- and long-term gains or losses on the customers’ Consolidated Form 1099-B. This is intended to simplify year-end tax preparation, as Form 1099-B provides a complete, accurate accounting of the cost basis and gains/losses for the year. TradeStation is not responsible for reporting to the IRS cost basis and gain/loss information for equity positions purchased before January 1, 2011. How does cost-basis reporting affect Form 1099-B?Form 1099-B reports a sale’s gross proceeds less commission. Brokerage firms are required to communicate cost-basis information to one another, so equity purchases made in the current tax year and transferred to TradeStation should be transferred with the cost-basis information. The 1099-B now shows the following additional information below for covered securities:
What is a tax lot?A tax lot is established whenever you open a new position via a purchase or short sale in a security. You can have multiple tax lots within the same security as a result of multiple purchases, or you can have a single tax lot within the same security as a result of a partially filled order. What is a tax lot relief method?A tax lot relief method determines the selection of which lots of a security will be liquidated first in a given transaction. In addition to selecting which lot of a security will be sold, it also identifies the associated cost basis and holding period, which are used in computing the gain or loss, and whether or not it is long term or short term. When considering specific tax strategies, you need to be aware of the potential tax consequences of your trading activity for the entire year. There may be benefits to applying a different tax lot relief method in different accounts, or in the sale of some specific covered positions. What tax lot relief methods does TradeStation support?The default lot relief method for all asset classes is first-in, first-out (FIFO). We are required by law to apply FIFO unless you specifically instruct us to use another method. The following lot relief methods are available:
You may configure the default lot relief method to be used for each security type (stocks, ETFs, options, and mutual funds) within each account, as well as per position, using the Gain/Loss Tax Management feature in the Client Center. How do I change the default tax lot relief method for each security type?The default tax lot relief method for all asset classes is first-in, first out (FIFO). However, if you prefer to set a different tax lot relief method for a given security type (stocks, ETFs, options, or mutual funds) you can do so through the Gain/Loss Tax Management feature in the Client Center.
How can the Gain/Loss Tax Management feature help me with tax reporting?The Gain/Loss Tax Management feature in the Client Center can help you track and manage your realized and unrealized gains/losses throughout the year. You can use it to generate specific reports to assist you in filing your tax return. to learn how to use the tool to monitor and optimize your tax position. Can I use FIFO as the cost basis for my mutual funds?Yes What is the deadline for electing to report cost basis for mutual funds on a FIFO method?Clients have until December 31, 2017, to inform TradeStation that they are electing to report their mutual funds’ cost basis using a FIFO method. We will adjust the data for trades placed in 2017, but not for those made prior to the 2017 tax year. Send your notification via email to [email protected]. Or mail to: ATTENTION: Client Services – Mutual Funds FIFO Method Please provide the following information: Name: I/We wish to elect the first-in first-out (FIFO) method of cost accounting for the mutual fund covered shares held in the accounts listed below. List account number(s) covered by your selection: How do I change the tax lot relief method for a position?The default tax lot relief method for all asset classes is first-in, first out (FIFO). However, if you prefer to set a different tax lot relief method for a given security type (stocks, ETFs, options, and mutual funds) you can do so through the Gain/Loss Tax Management feature in the Client Center.
Where can I view the individual tax lot information for my positions?You can view the tax lot information for both your open and closed positions through the Gain/Loss Tax Management feature in the Client Center. For each security a summary row is provided that, once expanded using the (+) icon, will display information about the individual underlying lots. How are transferred securities handled?TradeStation is not responsible for, nor required to provide, cost basis for non-covered positions transferred into your TradeStation account. In addition, TradeStation is only required to report cost basis for covered securities purchased on or after January 1, 2011, and transferred into your account if the transferring firm provided valid cost-basis information. How can I edit the cost basis of a transferred position?You can edit the cost basis of your unsettled transferred positions or unsettled uncovered positions under the Tax Lot Transfers tab of the Gain/Loss Tax Management feature in the Client Center.
Who is not subject to cost-basis reporting?Non-resident aliens with a W-8 on file and C corporations are not subject to cost-basis reporting. S corporations are subject to cost-basis reporting. What are “covered” securities?Covered securities are those for which TradeStation is responsible for reporting to the IRS gain/loss and cost-basis information. This includes all securities you purchased on or after January 1, 2011, with the exceptions of fixed-income and options securities, which were covered effective January 1, 2014. What are “non-covered” securities?Non-covered securities are those for which TradeStation is not responsible for reporting to the IRS. They include any positions established prior to January 1, 2011. What are realized and unrealized gains/losses?Your unrealized gains and losses are the difference between the current price of the positions you hold and their purchase price, reflecting how much the positions have gained or lost since you bought them. If you close one of these positions, the gain or loss will become realized, or completed. What is a capital gain?When you sell an asset at a higher price than you paid for it, the difference between the purchase price and the sale price is your capital gain. For example, if you buy 100 shares of stock for $20 a share and sell them for $30 a share, you realize a capital gain of $10 a share times 100 shares, or $1,000. If you own the stock for more than a year before selling it, you have a long-term capital gain. If you hold the stock for less than a year, you have a short-term capital gain. What is a capital loss?When you sell an asset for less than you paid for it, the difference between the purchase and sale prices is your capital loss. For example, if you buy 100 shares of stock at $30 a share and sell them at $20 a share, you will realize a capital loss of $10 a share times 100 shares, or $1,000. How does TradeStation calculate gains and losses?TradeStation has opted to use the IRS default method of first-in, first-out (FIFO) and specified lot. The first method, FIFO, means that shares purchased first are sold first. What is a wash sale?A wash sale is the result of selling a security at a loss and buying it back within 30 days of the sale date or purchasing it within 30 days prior to the sale date. The total wash sale period is 61 days: 30 days before the sale date and 30 days after. What is the result of a wash sale?The loss that would have been incurred for the shares sold is disallowed and added proportionately to the basis of the replacement shares. In addition, the holding period for the shares you sold is added to the holding period of the replacement shares. The disallowed loss will be obtained when the replacement shares are sold. How are wash sales reported?TradeStation reports wash sales for identical covered securities (same CUSIP) purchased and sold in the same account. In addition, wash sales do not need to be reported for securities transferred in or between accounts within TradeStation. Clients should report on substantially identical securities across accounts for covered and non-covered securities, as they always have. Can a client opt out of wash sale reporting?As a part of the Emergency Economic Stabilization Act of 2008, TradeStation is responsible for reporting its customers’ cost basis, short- and long-term gains or losses and wash sales to the IRS via the revised Form 1099-B. Previously, we were required to report only the gross proceeds less commissions of a sale. TradeStation is not required to report wash sales for accounts for which you made a valid “mark-to-market” election under IRS code section 475(f)(1). Please consult with your tax advisor and/or refer to Publication 550 (Investment Income and Expenses) on how to make the mark-to-market election with the IRS. Once you receive confirmation of your election from the IRS, notify TradeStation, in writing (email is acceptable), of the identity of your TradeStation accounts as solely containing securities subject to the election. If you made such an election with the IRS and you fail to notify us, we will report your wash sales, possibly subjecting you to income tax reporting discrepancies. Upon receipt of your election under IRS code section 475(f)(1), we will refrain from reporting wash sales in the referenced account(s) for future tax years unless and until you subsequently inform us, in writing (email is acceptable), that the election no longer applies to you or to the account(s). If so informed, we will prospectively report wash sales for your account(s).
Please download, complete and submit the Mark to Market Election – Exclude Wash Sale form to opt out of wash sale reporting, subject to qualification. Is cost basis reported for IRA accounts?For the current tax year, TradeStation will not be reporting cost basis for IRA accounts to customers or the IRS. Cost basis may be reported to customers for informational purposes, but as this is not currently required by the IRS, cost-basis pages will only display IRA cash balances. For mutual funds, TradeStation uses average cost as its default cost-basis accounting method. If you wish to use the average cost method, no action is required at this time. Average cost for an account is calculated by adding up the cost of all covered purchases in the account (made after January 1, 2012) and dividing that total by the number of covered shares in the account. Under the average cost method, shares are redeemed in first-in first-out order, but the cost basis for all shares will be the calculated using average cost. TradeStation also provides FIFO as a cost-basis accounting method as an option for mutual funds. For more information, please contact your tax adviser or accountant. For ETFs, TradeStation uses FIFO as its default cost-basis accounting method. Where can I download a copy of my gain/loss statements?Gain/loss statements with or without wash sale adjustments for the current year, as well as several previous years, are made available to view or download as PDF files under the Reports tab of the Gain/Loss Tax Management feature in the Client Center. Where can I view or download a copy of my current year-to-date 1099 report?Year-to-date (YTD) 1099 reports are made available to view or download as a PDF and XLS (Microsoft Excel) file under the Reports tab of the Gain/Loss Tax Management feature in the Client Center. Two types of YTD 1099 reports are provided: a standard 1099 summary statement, and a detailed 1099 statement. Getting Started with TradeStation CryptoHow do I get Started?Get ready to launch your crypto trading and analysis with TradeStation Crypto! Here’s how to get started:
To learn more, see the TradeStation Crypto Quick Start Guide (PDF). About TradeStation CryptoWho is TradeStation Crypto?TradeStation Crypto is a cryptocurrency broker and a member of the TradeStation Group family of companies. For more than 30 years, the TradeStation Group companies have been pioneering leaders in the online trading industry, committed to delivering the best trading technology, brokerage services, trading education and support to individual and institutional traders. When we entered the cryptocurrency world, we saw a heavily fragmented market, lacking efficient means of price discovery and order execution. Inspired by the TradeStation brand heritage as a direct market access broker under our TradeStation Securities affiliate, we focused TradeStation Crypto on bringing efficient market structure concepts to the cryptocurrency trading space. Are you a crypto exchange?TradeStation Crypto is a brokerage service. Today’s crypto landscape is comprised of so-called “exchanges” and other fragmented pools of liquidity. Connection between different exchanges is often quite limited, and users tend to cluster around what they consider to be the “best exchange.” As a result of this fragmentation, prices are often different across each exchange and users are typically limited to only the one pool of liquidity provided by that exchange. As a broker, TradeStation Crypto is not bound to a single exchange and has the flexibility to provide access across multiple liquidity sources. Our goal is to provide one of the deepest and widest liquidity pools in the crypto market by aggregating liquidity from multiple sources. What types of exchanges are you connected to?TradeStation Crypto can connect to exchanges, OTC desks, market makers, and other electronic liquidity pools. As an individual crypto trader, it’s typically hard for you to form relationships with OTC desks and market makers, as they require large trade sizes. Through our crypto brokerage, you can enjoy access to these venues without having to form relationships with each venue or maintain trading minimums with them to sustain the relationships. What is “liquidity aggregation” and why is it important?Cryptocurrencies are typically traded on individual “exchanges” (orders are matched against corresponding orders from other customers on the same exchange), creating fragmented markets. Fragmented markets tend to lack deep liquidity, making it difficult to determine a “true” market price, and volatility can exacerbate the situation when large orders are processed. Liquidity aggregation gives traders the opportunity to deal with only one company (in this case, TradeStation Crypto), and have their orders dispersed over multiple liquidity sources, reducing the need to deal with each exchange directly. By doing this, TradeStation Crypto’s platform can help improve liquidity and seek out the best price execution across our connected liquidity sources. TradeStation Crypto’s one-account-balance approach helps enable efficient use of your capital and reduces the need to transfer your funds or assets between venues where you have separate crypto accounts. Do you offer wallets?TradeStation Crypto is a brokerage service and not a wallet service. As such, we do not provide personal wallets to customers. Our brokerage service has been built to leverage third-party wallet services providers to hold, on TradeStation Crypto’s behalf, and in TradeStation Crypto’s name, the crypto assets in our customers’ accounts. We’ve engaged BitGo to implement a multi-signature wallet structure that leverages dual-system controls, address whitelisting, spending limits and multiple wallets. We believe that custody is best left to firms like BitGo, whose sole responsibility is to provide a wallet solution for crypto assets. Is trading cryptocurrency risky?Yes. The risk of loss in purchasing, selling and trading cryptocurrency can be substantial. You should therefore carefully consider whether such activities are suitable for you in light of your circumstances and financial goals and resources. Please click here for TradeStation Crypto’s risk disclosures on investment and trading in cryptocurrencies. Do you support institutional clients?We have a dedicated team that provides personalized support for your business. As an institutional client, you may qualify for volume-based pricing and other professional grade services. Learn more Can I earn interest on my cryptocurrency assets in my account?Effective 6/30/2022, TradeStation Crypto no longer offers interest on customer crypto assets held with the firm. Does TradeStation Crypto rehypothecate or lend out my cryptocurrencies?Effective 6/30/2022, TradeStation Crypto no longer rehypothecates or lends out customer crypto assets held with the firm. Opening an AccountWhat are the account requirements?To get started trading crypto, you must apply and be approved for both a TradeStation Crypto account and a TradeStation Securities equities account, which you can do in one, seamless account opening process. Click here to get started. If you already have a TradeStation Securities equities account, you can easily apply for a TradeStation Crypto account through the TradeStation Client Center. Why do I have to open an equities brokerage account with TradeStation Securities in order to open an account with TradeStation Crypto?We do not let you deposit or maintain fiat funds (e.g., U.S. Dollars) in your TradeStation Crypto account. Instead, we have an arrangement with TradeStation Securities so that the fiat needed for your crypto purchases can be transferred in from your TradeStation Securities equities account and the proceeds when you sell crypto in exchange for fiat can be transferred into your TradeStation Securities equities account. The magical part is, you won’t even notice. When you place a buy order with TradeStation Crypto using U.S. dollars, you have authorized TradeStation Securities to transfer the U.S. dollars required for the order into your TradeStation Crypto account. Conversely, when selling crypto from your TradeStation Crypto account for U.S. dollars, you have authorized TradeStation Crypto to deposit the proceeds into your TradeStation Securities equities account. What are your fees?TradeStation Crypto employs a tiered pricing structure that offers increasingly favorable commissions for customers based on their 30 day trading volume. In other words, higher trading volume results in lower fees, and vice versa. USD to USDC and USDC to USD conversions are not included in the volumes are not included in trading volume calculations. Please refer to the for additional information. Crypto TradingWhat can I trade?The TradeStation Crypto team is constantly looking to add new supported crypto coins. Here’s what you can trade today:
Here are the specifications for the supported cryptocurrency pairs. PairBaseQuoteTick SizeBTCUSDBTCUSD.01LTCUSDLTCUSD.01ETHUSDETHUSD.01BCHUSDBCHUSD.01ETHBTCETHBTC.00001LTCBTCLTCBTC.00001USDCUSDUSDCUSD.01BTCUSDCBTCUSDC.01ETHUSDCETHUSDC.01AAVEUSDCAAVEUSDC.01COMPUSDCCOMPUSDC.01LINKUSDCLINKUSDC.01MATICUSDCMATICUSDC.01MKRUSDCMKRUSDC.01SHIBUSDCSHIBUSDC.000001 What is the minimum trade size?Please reference chart below. PairBaseTrade SizeBTCUSDBTC0.0001BTCUSDCUSDC0.0001BCHUSDBCH0.001ETHUSDETH0.0001ETHUSDCUSDC0.0001ETHBTCETH0.001LTCUSDLTC0.001LTCBTCLTC0.0001USDCUSDUSDC1AAVEUSDCAAVE0.01COMPUSDCCOMP0.01LINKUSDCLINK0.1MATICUSDCMATIC2.0MKRUSDCMKR0.001SHIBUSDCSHIB100,000.0 What is USD Coin (USDC)?USD Coin (USDC) is a stablecoin backed by the U.S. Dollar. USDC is redeemable from its issuer (Circle Internet Finance, Inc) on a 1:1 basis for U.S. Dollars. For more information on stablecoins, see “What are stablecoins?” below. Can I fund my crypto account with USDC?Yes. You can quickly fund your TradeStation Crypto account with USDC nearly 24/7 (see below for trading hours), with no banking fees and no long in-person wait times. Is it free to convert USD to USDC?Yes. With TradeStation Crypto, you can convert USD into USDC commission-free. You also enjoy a 1:1 conversion rate (that’s 1 USD for every 1 USDC). These free and near instant conversions make it a breeze to move between USD and USDC. What are stablecoins?Stablecoins are cryptocurrencies that have a value pegged to a fiat currency, such as the US Dollar. Stablecoins value is backed by fiat currency or other digital assets. The pegged value of stablecoins allows users to take advantage of the decentralized, 24/7 nature of the blockchain without the risk of volatility. What are the trading hours?TradeStation Crypto supports trading 24 hours a day, seven days a week, except Monday – Friday between 8:00 p.m. to 8:30 p.m. ET. In addition, on the trading day that falls on the second Saturday of each month, trading is closed for a 24hr maintenance window beginning 5PM ET on the Friday before and continue through Saturday. How is the trading day defined?At TradeStation Crypto, the current trading day ends each day at 5:00 p.m. ET. Since this is the end of the current trading day, there are a few things to keep in mind:
It’s important to remember that trading continues past the 5:00 p.m. ET end of day. Think of the end of day as a line in the sand that divides account activity between two days. When can I contact the Trade Desk?TradeStation Crypto supports crypto trading 24 hours a day, seven days a week, except the second weekend of each month when we are closed from Friday at 6:00 p.m. to Saturday 5:00 p.m. ET. The Trade Desk can be reached at 800-822-0512. How do you aggregate markets?TradeStation Crypto’s business model is to form trading relationships with multiple market centers. We connect these market centers to our back-end technology that streams integrated quotes from these multiple venues and routes orders to these venues. Our goal is to provide best price execution, meaning that your order is designed to be routed to the best available price on our connected venues. Our intelligent order routing algorithms analyze prices and available volume across our connected venues before deciding how and where to route your order. Venues “win” orders by having the best price our system sees, and, for large orders, our router can split orders into small parts that are simultaneously routed to different venues. Once I put in an order, how does it get executed?We focus on trying to provide the best price execution we reasonably can across our connected liquidity sources. TradeStation Crypto’s smart order router tracks available liquidity at the venues with which we are connected and can break up the order into smaller parts to improve the execution quality of the order. What’s the difference between “maker orders” and “taker orders”?The maker and taker model is a way to differentiate trade fees between orders that provide liquidity (“maker orders”) and orders that take away liquidity (“taker orders”). Simply put, it refers to whether your order can be executed immediately among our connected liquidity sources. Maker orders are orders that are not immediately marketable (or executable) among our connected liquidity sources. These orders add liquidity to the market and rest until an executable price is found. All orders that are not marketable at the time of order placement will get a maker fee. Taker orders are orders that are immediately marketable (or executable) among our connected liquidity sources. These orders remove liquidity from the market. All orders that are marketable at the time of order placement will get a taker fee. Are my crypto positions marginable to allow additional trading with TradeStation Crypto?No, positions are not marginable. Where are my assets held?For the crypto assets in your account, we use BitGo custodial services and applications. BitGo is trusted by institutions in the digital assets industry for security, compliance and custodial solutions. The multi-signature wallet structure we have created with BitGo, together with our own security policies and rules, seek to provide safety for your crypto. We take this responsibility seriously and are committed to earning your trust. We do not let you deposit or maintain fiat funds (e.g., U.S. Dollars) in your account. Instead, we have an arrangement with our affiliate, TradeStation Securities, so that the fiat needed for your crypto purchases can be transferred in from your TradeStation Securities equities account. When you sell crypto in your account in exchange for fiat, those net fiat proceeds are promptly transferred by us for deposit directly into your TradeStation Securities equities account. Both of these processes are seamless to you. TradeStation Securities is an experienced self-clearing broker-dealer that has been in business for over 20 years, and custodies its customers’ cash funds only with major U.S. banks. We believe this arrangement, too, shows our commitment regarding the safety of your personal assets. Are my account balances insured against loss?Your TradeStation Crypto account is not a securities brokerage account, or a checking or savings account, and it is not insured against loss should TradeStation Crypto go bankrupt. Accounts and account balances are not subject to Federal Deposit Insurance Corporation or Securities Investor Protection Corporation or any similar protections. Does TradeStation Crypto offer Market Order Price Protection?TradeStation Crypto’s systems are designed to provide market order price protection limits. Market orders are subject to a 10 percent protection limit. Buy market orders will fill at prices up to 10 percent away from the best offer on the order book when the order was placed. Sell market orders will fill at prices up to 10 percent away from the best bid on the order book when the order was placed. Please note, if a market order would, absent these price protection limits, fill against orders beyond the 10 percent protection limit, the order will partially fill up to the 10 percent price level, and the remaining balance of the order will be canceled. When stop market orders are triggered, the market order component will be subject to the same 10 percent protection limit. Crypto PricingIf I meet the requirements for a pricing tier will I move to the next tier on the same day?Pricing tiers are calculated on a daily basis using the trailing 30 days trading volume. Customers can only move tiers during this daily calculation. Intraday pricing tier changes are not possible at this time. How do you determine which pricing tier customers fall into?TradeStation Crypto determines customers’ pricing tier based on the scales found on the . Customers’ pricing tier is based on trailing 30-day trading volume. How do you calculate volume for pricing tiers?Volume is based on the sum of notional (USD) value of your trading activity for the prior 30 days. Volume of USD to USDC trades is not included in the volume calculations for pricing tiers. Why is USDC not included in the volume calculation?USDC is a stablecoin and its value is pegged to USD. Because of this, TradeStation does not charge commissions for conversions between USD and USDC and this activity is not included in volume pricing calculations. Where can I find what tier I am in?Please refer to the commissions widget on the far right side of the TradeStation Crypto trading room page. What if part of my order falls under the “maker” bucket and part of it falls under the “taker bucket”?Each portion of the order will be broken down based on the bucket it falls under and you will be charged accordingly. Can I ensure that I am charged a maker fee?No. Please refer to “What’s the difference between “maker orders” and “taker orders?” for additional details. Why are there different fees for maker and takers?TradeStation Crypto prides itself in providing platform users with deep liquidity by incentivizing maker orders. Are there any other trading fees I need to worry about?No. Deposits/WithdrawalsCan I deposit crypto?Yes, you can deposit Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), AAVE (AAVE), Compound (COMP), Chainlink (LINK), Polygon (MATIC), Maker (MKR) and US Dollar Coin (USDC). Deposits are typically processed 24 hours a day, seven days a week, and are subject to blockchain confirmation before being credited to your account. Blockchain confirmation times may vary and are described below under “I have made a deposit. How long until I can trade the deposited coins?” Please be advised TradeStation Crypto only supports the native Ethereum blockchain for ETH and ERC-20 coins. Refer to “Can I deposit coins from EVM-compatible blockchains into my TradeStation Crypto account?“ for additional details. Can I withdraw crypto?Yes, you can withdraw your Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), AAVE (AAVE), Compound (COMP), Chainlink (LINK), Polygon (MATIC), Maker (MKR) and US Dollar Coin (USDC). Withdrawals are processed only on banking days Monday through Friday from 9:00 a.m. – 5:00 p.m. ET, except on bank holidays. Note: Please see the instructions below on the withdrawal limits. How do I make my first withdrawal?For the enhanced security of your account, prior to your first crypto withdrawal from your TradeStation Crypto account you must call 800.793.0161 or 954.652.7950 between the hours of 9 a.m. ET and 5 p.m. ET, Monday to Friday to confirm account ownership. What are my withdrawal limits?At TradeStation Crypto, we care about the security and safety of your assets. We’ve put in place withdrawal limits that help detect and prevent financial crimes, including, but not limited to, money laundering and fraud. For your security, we’ve added withdrawal limits to all accounts. These limits depend on your verification level. Please see the table below. Cryptocurrency Withdrawal Limits* Daily Limits$50,000Weekly Limits$250,000Monthly Limits$1,000,000* Dollar amounts represent the US dollar notional value of cryptocurrency assets. We may change the limits that apply to your use of our services because of information collected about you on an ongoing basis. We reserve the right to change applicable transaction limits in our sole discretion without prior notice. Note: To learn how withdrawal limits work and how you can increase your withdrawal limits, please refer to the questions below. How do withdrawal limits work?There are daily, weekly, and monthly withdrawal limits. Daily limits reset daily at midnight UTC. Weekly limits reset weekly each Sunday at midnight UTC. Monthly limits reset at midnight UTC on the last calendar day of each month. Monthly limits override weekly limits, and weekly limits override daily limits. How can I increase my withdrawal limits?You may qualify for higher withdrawal limits. To make a request to increase your limits please contact us by phone at 800.793.0161 or 954.652.7950 between the hours of 9 a.m. ET and 5 p.m. ET, Monday to Friday or email us at [email protected] to be directed to our crypto trade desk. How do I withdraw my fiat funds?TradeStation Crypto does not accept or retain customer fiat funds. Our affiliate, TradeStation Securities, Inc. accepts and retains fiat funds in your equities account. TradeStation clients can log into the Client Center by clicking here for instructions on how to withdraw fiat funds from their TradeStation Securities, Inc. equities account. Note: To learn more about how your fiat is stored, please see . Are there fees to deposit and withdraw crypto?TradeStation Crypto does not charge a fee for depositing crypto. Withdrawal fees are charged for select cryptocurrencies. Please refer to the for specific fees for each cryptocurrency. What are the withdrawal minimums?The minimum amounts of permitted withdrawals are listed below: CryptocurrencyMinimum Withdrawal AmountETH0.018BCH0.15BTC0.0012LTC0.46USDC50.0AAVE0.75COMP1.0LINK7.0MATIC100.0MKR0.05 I have made a deposit. How long until I can trade the deposited coins?The time it takes will vary. The table below shows the approximate time it will take for each coin. Although we aim for your deposits to be available to you within this timeframe, the times listed are estimates and actual times will vary. CryptocurrencyEstimated TimeBTC30 minsBCH150 minsLTC30 minsETH10 minsUSDC10 minsAAVE10 minsCOMP10 minsLINK10 minsMATIC10 minsMKR10 mins How are ETH and ERC-20 withdrawals processed?If withdrawing ETH AAVE, COMP, LINK, MATIC, MKR, SHIB or USD please ensure that the receiving wallet or wallet service provider supports contact internal transactions. As of 2022 this capability is available on most popular wallets and wallet service providers. If you’re tracking your withdrawal on an Ethereum blockchain explorer your transaction will appear under the contract internal transactions of the block. When I try to withdraw Bitcoin Cash (BCH), I keep getting a “bad address” message. What am I doing wrong?We only accept Bitcoin Cash (BCH) withdrawals to legacy addresses. BCH has adopted a new format for wallet addresses, and at this time, we do not support the new format. You can navigate to https://cashaddr.bitcoincash.org/ and enter a BCH address to convert from the new CashAddr format to the required legacy format. If you have issues, please call Client Services. How do I withdraw my funds?TradeStation Crypto does not accept or retain customer fiat funds. Please see . Please click here, which will take you to instructions from TradeStation Securities on how to withdraw fiat funds from your TradeStation Securities, Inc. equities account. Can I deposit coins from EVM-compatible blockchains into my TradeStation Crypto account?No. Please be advised TradeStation Crypto only supports the native Ethereum blockchain for ETH and ERC-20 coins. Blockchains such as Binance Smart Chain and Crypto.com Cronos that are Ethereum Virtual Machine (EVM) compatible are considered non-native chains. Deposits made from non-native chains into a TradeStation Crypto account cannot be processed and will result in a loss of assets. In addition, you should not deposit coins not specifically supported by our services as it can result in loss of assets. Please only deposit ETH and supported ERC-20 coins into your TradeStation Crypto account. If you are using a MetaMask wallet always verify that you have selected the “Ethereum Mainnet” network before sending a deposit to your TradeStation Crypto account. Withdrawals – Ripple (XRP)Can I withdraw XRP from my TradeStation Crypto Account?Yes, however, a Destination Tag is required. XRP uses Destination Tag technology, and as a result of this, you must always include the correct Destination Tag when initiating a withdrawal of XRP. Omitting or using an incorrect Destination Tag on a withdrawal may cause a delay in the transaction, the transaction not being received, or the coins being lost. If this happens, please contact the exchange from which you sent the coins for help. If you are unsure about the address format of an XRP transaction you have made or would like to make, please reach out to Client Services. Important Destination Tag for Ripple (XRP) withdrawalsWhen requesting an XRP withdrawal from your TradeStation Crypto account, you will need to ensure that you include the full string (XRP address and Destination Tag) in the wallet address. TradeStation Crypto requires that you enter the Ripple (XRP) withdrawal address as a single string that contains both your XRP address + mandatory Destination Tag. It will look something like this: Example XRP Address XRP Address + Tagr4jwSHuJ2oe4mHfij1b95QcXsbpBZMCbNe?dt=5XRP Addressr4jwSHuJ2oe4mHfij1b95QcXsbpBZMCbNeDestination Tag5 The Destination Tag always appears after the “?dt=” and must be included with all Ripple (XRP) withdrawals from your TradeStation Crypto account. The example Ripple (XRP) Destination Tag in the above example is: 5 Always ensure that you have included the correct Destination Tag before initiating your XRP withdrawal. WARNING: Forgetting to include the Destination Tag will lead to significant delays in processing the withdrawal and might even make the coins irretrievable in some instances. If you omit the Destination Tag, please contact Client Services. Important Crypto IRAHow do I apply for a TradeStation Crypto IRA?Get ready to launch your crypto trading and analysis with TradeStation Crypto!
What types of IRAs are eligible for crypto (Trad, Roth, SEP etc.)?With a TradeStation you have several different options when choosing which IRA to open (Traditional IRA, Roth, Simple, Sep, Beneficiary IRA Traditional and Roth). Can I have multiple crypto IRAs?At this time, you can only have one crypto account, but we are expanding our crypto offering to make this possible in the future. Can I have a crypto IRA and a crypto individual or joint account?At this time, you can only have one crypto account, but we are expanding our crypto offering to make this possible in the future. What is the relationship between my TradeStation Equities IRA account and my TradeStation Crypto IRA?We do not let you deposit or maintain fiat funds (e.g., U.S. Dollars) in your TradeStation Crypto IRA account. Instead, we have an arrangement with TradeStation Securities so that the fiat needed for your crypto purchases can be transferred in from your TradeStation Securities equities IRA account and the proceeds when you sell crypto in exchange for fiat can be transferred into your TradeStation Securities equities IRA account. The magical part is you won’t even notice. When you place a buy order with TradeStation Crypto using U.S. dollars, you have authorized TradeStation Securities to transfer the U.S. dollars required for the order into your TradeStation Crypto IRA account. Conversely, when selling crypto from your TradeStation Crypto IRA account for U.S. dollars, you have authorized TradeStation Crypto to deposit the proceeds into your TradeStation Securities equities IRA account. Can I trade on margin with crypto in an IRA?Currently, we do not support margin trading in your Crypto account. Can I deposit crypto positions from my wallet into my TradeStation Crypto IRA? If so, what are the implications and are any additional documents required?Currently, we do not support Crypto contributions into your Crypto IRA. All contributions would need to be cash and then can be available to purchase Crypto. For additional information regarding IRS limitations around contributions to IRA accounts, visit: https://www.irs.gov/publications/p590a. Can I move crypto positions from my individual or joint TradeStation Crypto account into my TradeStation Crypto IRA?Currently we do not support Crypto deposits into your IRA. Can I move Crypto assets out of my TradeStation Crypto accounts to satisfy my Required Minimum Distribution requirements?Currently, we do not support the withdrawal of Crypto from your IRA. The withdrawal process would take place in the form of cash. What coins can be traded in my TradeStation Crypto IRA?Currently we support BTC, ETH, LTC, BCH, AAVE, COMP, LINK, MATIC, MKR, SHIB and USDC. Are my beneficiaries entitled to my crypto assets?The beneficiaries that you selected will be the same for all assets in your TradeStation IRA accounts, including your TradeStation Crypto IRA account. What are the tax implications of trading crypto in an IRA?The tax implications may be similar to trading other types of assets in an IRA, but may vary based on your circumstances. For additional information on tax implications of an IRA account, visit https://www.irs.gov/retirement-plans/individual-retirement-arrangements-iras, and Please consult with your tax advisor for further information. Will I receive a 1099R if I move crypto out of my TradeStation Crypto IRA?Currently we do not support the withdrawal of Crypto assets from your IRA account. All withdrawals would need to be cash and if there were a cash withdrawal, this event would require issuance of a 1099R to the account holder. What is the pricing and Fees associated with a TradeStation Crypto IRA?
Important Information The information contained in this FAQ is provided for information purposes only, it is not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations and does not resolve any tax issues in your favor. Refer to IRS Publication 590, Individual Retirement Accounts for additional information on IRAs in general and consult your tax professional about your individual tax situation. Crypto investment and trading is offered by TradeStation Crypto, Inc. |