Frequently Asked
Questions

NEW VISITORS

What is Sogotrade?
SogoTrade, Inc. is your broker dealer. SogoTrade's goal is to offer the lowest commission prices, the fastest executions, the friendliest customer service, and the most advanced trading technology in order to create the most value for its clients.

With our proprietary trading center, active traders benefit from our rapid and easy-to-use order entry center which will allow you to place, track, cancel, and adjust orders all with just one click.
Is my brokerage account insured and protected?
SogoTrade, Inc. is a member of Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). SIPC does not protect against declines in the market value of securities. For additional information regarding SIPC, including obtaining a copy of a SIPC brochure, please contact SIPC at (202)371-8300 or visit the SIPC website at www.sipc.org .

Our clearing firm Apex has purchased an additional insurance policy. The coverage limits provide protection for securities and cash up to an aggregate of $150 million, subject to maximum limits of $37.5 million for any one customer’s securities and $900,000 for any one customer’s cash. Similar to SIPC protection, this additional insurance does not protect against a loss in the market value of securities.
What advantages does SogoTrade offer?
Online stock and ETF trades for as low as $3.00*. Online option trades for $5.00 plus 50¢ per contract. SogoTrade’s goal is to combine low commissions, fast execution, friendly service and advanced technology to create the best value for our customers. Paying low commissions is essential for both active traders and long-term investors. SogoTrade’s pricing not only allows you to save in costs, it also allows you to take advantage of smaller market movements. With online stock trades as low as $3.00 and no hidden account inactivity or account minimum fees, it’s easy to see why Forbes magazine calls SogoTrade "The Deepest Discount Broker." *For more detail, please visit Commission, Rate and Fees page.

Free electronic (ACH) deposits and withdrawals. Deposits and withdrawals to and from your SogoTrade account are free and easy. Simply link an external checking account and you are ready to initiate transfers online.
How much does it cost?
The initial deposit required is only $500. At SogoTrade, we have some of the lowest stock trading fees in the Industry. Not only stock trading fees, but also some of the lowest options trading fees and margin interest rates, as well. Our low fees are just one of the reasons you will see how much we value your business, please click here to see our current commission, rates and fees schedule.
What types of accounts can I open with SogoTrade?
The following account types are offered:
  • Individual Account - An investment account opened for one person.
  • Joint Account - An investment account opened for two people.
  • Business Account - an account for a corporation or LLC.
How do I get started?
It’s easy to start. Just open an account, fund your account and start trading.

Open an Account
SogoTrade offers margin and option accounts for individuals, joint account holders and businesses. Complete an individual or joint account application online. The online application takes less than 5 minutes to complete. To open a business account, please contact us for details at [email protected]

Fund Your Account
Once your account is activated, you can fund your account by wire transfer. Visit our "Funding Your Account" page for instructions on each method.

Start Trading
Learn about stock, ETF and option trading through articles on SogoTrade’s Knowledge Center. Research stock ideas on our stock research center, powered by Barchart. Place a stock trade on our stock trading center or an option trade on our options trading center.

FUNDING

How do I fund my SogoTrade account?

There are several ways to deposit funds from your SogoTrade account

Note: SogoTrade does not accept money order deposits

Wire Deposit

Wires are a fast and easy way to fund your account. SogoTrade provides this service free of charge, although your financial institution may have wire transfer fees.

Once received, wired funds usually credit to your SogoTrade account within one business day.

To initiate a wire deposit, please contact your financial institution and provide them with the information found on our Wire Transfer page.

Note:

  • In order to credit your account, please have the bank include the sender's name on the wire. A rejected wire may incur a bank fee.
  • SogoTrade will not accept third-party wires.
  • One or both signers on a joint account may deposit a wire from a joint account to an individual SogoTrade account.
  • A wire from an individual account may be deposited to a joint account if that person is one of the account holders.

Electronic Transfer (ACH)

ACH electronic transfers are a convenient way to fund your SogoTrade account. To proceed, you will need to complete the following:

  1. Link a new bank account on the Link Bank Account page. You will be prompted to enter the bank account number and bank routing number. Only one bank account may be linked to your SogoTrade account at any one time.
  2. Verify the bank account:
    A newly linked bank account needs to be verified before transfers can be initiated. As part of the verification process, SogoTrade will make two micro-deposits which will post to your bank account the day after your account is linked. Find the amount of each deposit from your bank’s online statement. Go to the Bank Account page, click the "Verify" link located under the account. Enter the amounts of the two micro-deposits made to your account in any order and submit.

Once the micro-deposits are verified, the account linkage will be complete and funds can be transferred electronically online.


Electronic Transfer Timeline

Business Day 1: Setup an ACH transfer, recurring or one-time, online. If you submit your transfer request before 1:00 PM, the first available initiation date will be the next day. If you submit your transfer request after 1:00 PM, the first available transfer initiation date will be 2 days later.

Business Day 2: On the electronic transfer initiation day, funds will be withdrawn from your outside checking/savings account and transferred to SogoTrade. At midnight, the transferred funds will post to your individual SogoTrade account.

Business Day 3: Funds remain on hold during clearing period. (Under certain circumstances you may get access to your new deposit by contacting our customer service support center)

Business Day 4: Prior to market open, your transferred funds will be made available to use for trading. Your cash balance and buying power will have increased.


Mail a Check

You can fund your SogoTrade account with a variety of check types. Checks can take up to ten business days to process once SogoTrade receives them.

Checks can be mailed to:

SogoTrade, Inc.
1 McBride and Son Center Drive, Suite 288
Chesterfield, MO 63005

Remember:

  • Make checks payable to "Apex Clearing Corporation".
  • Include your SogoTrade account number on all the checks.
  • SogoTrade cannot accept third-party checks.
  • SogoTrade cannot accept money order deposits.

*Note: Accounts that are activated but not fully approved will not earn interest on deposited funds. Interest on deposited funds will accrue once an account is fully approved.

How do I check the status of my funds transfer?

Electronic Deposit Status

There are three different statuses for Electronic Transfers:

  • Pending
  • Processing
  • Completed

Transfers can be viewed on the Pending Transfers Page or the Funds Transfer History Page depending on its status.

Only electronic deposits designated "pending" can be cancelled or modified. "Processing" and "completed" electronic transfers cannot be cancelled. To view processing and completed electronic deposits, please check the transfer history page. Funds that are being held for verification can be viewed on the account overview page under the unsettled funds category.

To find out the status of an electronic withdrawal, check or wire transfer, please contact SogoTrade customer support at 1-646-885-6486.

How do I cancel a deposit, withdrawal or transfer?

Only electronic deposits that are in "pending" status can be cancelled.

To view pending transfers please go to the Pending Transfers Page to check if your transfer is still pending.

"Processing" and "completed" electronic transfers cannot be cancelled. To view processing and completed electronic transfers please check the transfer history page.

For all other cancellations (e.g. electronic withdrawal, wire, and check transactions), please contact SogoTrade customer support at 1-646-885-6486.

How do I withdraw funds from my SogoTrade account?

There are several ways to withdraw funds from your SogoTrade account.

  • Electronic Withdrawal (ACH)
  • Request a Check
  • Request a Wire

Request a Check

To request a check drawn on funds in your SogoTrade account, please follow these instructions:

Request by Telephone:

1) Note SogoTrade’s check withdrawal policies below and verify the amount available for withdrawal in your account. This amount is displayed on the account overview page.

2) Contact SogoTrade customer support at 1-646-885-6486.

3) Provide your support representative with the amount you would like to withdraw and your delivery method (regular mail, 2nd day, overnight). Your check will be made out only to the account holder(s) on file and mailed to the address on file.

Important policies:

Checks withdrawals may only be requested over the telephone by contacting SogoTrade customer support at 1-646-885-6486.

Withdrawal checks are only made out to the account holder(s) on file and are mailed to the mailing address on file. Your primary address (cannot be a P.O. box) and mailing address can both be changed by visiting the account settings page.

Check withdrawal requests received before 1 PM ET will be processed the same day. Allow 5 business days to receive your check.

There is no charge for checks delivered via regular mail. Overnight fee is $20 and weekend deliver fee is $25.

Funds deposited via ACH transfer within the last 60 days must be withdrawn via ACH transfer (no check or wire payout requests will be accepted). If you are withdrawing funds deposited from one bank account to a different bank account, your funds may be subject to a 60 day restriction before the withdrawal can be processed.

Stock transactions take 3 business days to settle. Proceeds from a recent transaction may not be available until settlement day.

Request a Wire

To request a wire, please complete the wire request form (PDF) pdf icon.

Timing: If your wire request arrives at SogoTrade before 1 PM ET, it will be sent the same business day. If your request arrives after 1 PM ET, the wire will be sent the following business day.

Fees: There is a $25 fee per transaction for outgoing domestic wires and a $50 fee per transaction for outgoing international wires. Please keep these fees in mind when calculating the total amount of your wire request. SogoTrade will deduct the fees from the total amount you request.

When can I withdraw my funds?

Funds Availability for Withdrawal:

The following are withholding period for funds that are deposited in your SogoTrade Account:

 

Deposits: Number Holding days
Check 10 Business days
Wire 1 Business day
Electronic ACH IN* 5 Business days

 

*A withdrawal restriction may be imposed for a period up to 60 days - Electronic funds that are deposited from one bank account and withdrawn to an account at another financial institution, or withdrawn through a different means than the funds were deposited, such as check, or wire may be restricted to 60 day holding period.

Trade Transactions: All trade transactions settled in 3 business days. If you are withdrawing funds from a recent trade, the funds may not be available until the 3rd business day. Please call us if you need further assistance.

How do I transfer an account from another financial institution?

To transfer your account from another brokerage:

  1. Complete our ACAT form (PDF) <pdf icon.
  2. Include a copy of your most recent brokerage statement.

Before sending us your ACAT (Automated Customer Account Transfer Service) form please ensure the following:

  • Your outside brokerage account and your SogoTrade account types (e.g. individual or joint, cash or margin) are identical.
  • The account holder(s) names of the two accounts are the same.

Please note: If you are transferring assets from an outside joint brokerage to an individual SogoTrade account or if you are transferring from an outside individual brokerage into a joint SogoTrade account, please be aware that a letter of authorization from one or both account holders might be requested in order to process the transfer.

Fax or mail the ACAT form and statement to

    SogoTrade, Inc.
    1 McBride and Son Center Drive, Suite 288
    Chesterfield, MO 63005

    Fax:
    888-710-7646 (Domestic)
    646-459-2749 (International)
  • Most account transfers are sent via ACAT and take approximately seven (7) to ten (10) business days.
  • Residual balances with the delivering brokerage firm after the transfer is completed will follow in approximately ten (10) to thirty (30) business days.
  • For questions regarding residual sweeps, please contact the transferor firm directly.
  • Transfers that cannot be accomplished via ACATS generally take approximately three (3) to six (6) weeks to complete. However, this time frame is dependant upon the transfer and may take longer.
  • Some financial institutions charge a fee for ACAT transfers. This fee might be deducted from the account you are transferring automatically.
How do I check the status of an account transfer? How do I transfer an account from Sharebuilder to SogoTrade?

Share builder has requested that all SogoTrade account holders submit a medallion signature guaranteed ACAT form in order to process a transfer request from Sharebuilder.
(Medallion Signature Guarantees protects you by making it harder for others to defraud you by forging your signature on your financial documents and certificates.) Please follow these steps:

  1. Download and complete (but do not sign) SogoTrade´s account transfer form (PDF) pdf icon.
  2. Please take your unsigned ACAT form to your bank and request a medallion signature guarantee.
  3. Please mail your original guaranteed ACAT form and most recent Sharebuilder statement to SogoTrade.com. We will take care of the rest.
How do I deposit my stock certificate?

To deliver physical securities:

  • All registered parties must endorse the back of the stock certificates. The signature's) must correspond with the names(s) upon the face of the stock certificate.
  • Include your account number on the front of the stock certificate(s).
  • Indicate Apex Clearing Corporation as your Attorney To Transfer on the appropriate line on the back of the certificate(s), which means the securities are only negotiable
    by Apex Clearing Corporation
  • Mail to:

    SogoTrade, Inc.
    1 McBride and Son Center Drive, Suite 288
    Chesterfield, MO 63005
  •   pdf Irrevocable Stock Power
What forms of deposits does SogoTrade accept?

SogoTrade accepts the following forms of deposits

  • Personal Checks
  • Cashier's Checks

SogoTrade cannot accept the following forms of deposits:

  • Cash
  • Money Orders
  • Traveler's checks
  • Corporate checks
  • Temporary checks
  • Credit card checks
  • Debit card checks
  • Checks not payable to Apex Clearing Corporation
  • Unsigned checks
  • Incomplete checks
  • Foreign currency checks
  • Checks from foreign banks
  • Third-party checks

MARGIN & OPTIONS

What are SogoTrade's option trade commissions?

Options Commission Schedule

Online $5.00 plus 50¢ per contract
Broker-Assisted Trade $25.00 plus 50¢ per contract

Sample Option Trade Commissions

5 Contracts $7.50
10 Contracts $10.00
25 Contracts $17.50
50 Contracts $30.00
What are SogoTrade's option trade spread commissions?

SogoTrade charges only one ticket charge ($5) + .50 per contract on legitimate spread orders.
This is in contrast to many of our peer platforms that charge multiple ticket charges for spread orders.

How do I upgrade my account to trade options or increase my existing options approval level?

If you aren’t currently approved for Options trading and would like to add this capability to your account, you can easily apply for such privileges via:

1. My Account/Account Profile and select : Margin / Options Upgrade
or
2. My Account/Margin Options Upgrade and select : Margin / Options Upgrade

You will receive an email notification, usually within 1 business day of the decision regarding your account.
Please contact us if you have any additional questions. You can email us at [email protected] or call us at (646) 885-6486, Monday through Friday, 7:00 AM to 9:00 PM ET.

How do I add Margin trading to my account?

If you aren’t currently approved for Margin trading and would like to add this capability to your account, you can easily apply for such privileges via:

1. My Account/Account Profile and select : Margin / Options Upgrade
or
2. My Account/Margin Options Upgrade and select : Margin / Options Upgrade

You will receive an email notification, usually within 1 business day of the decision regarding your account.
Please contact us if you have any additional questions. You can email us at [email protected] or call us at (646) 885-6486, Monday through Friday, 7:00 AM to 9:00 PM ET.

What is a Margin Call?

Margin Call There are two types of margin calls and both involve a demand from a broker / dealer to either deposit additional equity (in the form of a cash deposit or marginable securities with sufficient loan value) and / or to close enough existing positions to satisfy the call. The first type of margin call occurs when a new position is opened with insufficient overnight buying power. This is known as a Federal or Reg T (RT) call. The second type of margin call involves total equity which is no longer sufficient to maintain the positions that have been opened. This is known as a Required Maintenance (RM) call.

Overnight Buying Power (ONBP) The amount of funds you have to open a new position and hold it overnight. In the majority of cases, beginning of day ONBP is based on two times your maintenance excess (equity – equity requirement). Closing positions can increase your ONBP intraday. It is sometimes referred to simply as ‘Buying Power’.

Day Trade Buying Power (DTBP) The amount of funds you have to place day trades. Beginning of day DTBP is 4 X margin maintenance excess from the end of the previous day. This figure cannot be increased intraday, and is fixed at the start of the day. Closing positions opened that day will replenish DTBP, but never greater than the start of the day DTBP. Closing overnight positions will not replenish DTBP.

Required Maintenance (RM) Call This type of Margin call is the most common type issued. It occurs when the value of the security moves against the customer (price drops when long the stock or price increases when short the stock). All securities have a margin maintenance requirement (25%, or more stringent, up to 100% of the market value), and this type of call simply means that the current equity in the account is no longer sufficient to satisfy the total maintenance requirement of all the positions held. The call can be met in many ways. (1) You can deposit money in the amount of the call. (2) You can deposit securities valued at 1 1/3 times the amount of the call. (3) You can close marginable securities at 4 X the amount of the call. (4) You can sell non-marginable securities at the full amount of the call. Or, (5) the value of the marginable positions move in the account’s favor to the point there is no longer maintenance call. This call is also referred to simply as maintenance call.
Hypothetically, let's say you purchase $20,000 worth of securities by paying $10,000 yourself and borrowing $10,000 from SogoTrade. If the market value of the securities drops to $15,000, the equity in your account falls to $5,000 ($15,000 - $10,000 = $5,000). Assuming a maintenance requirement of 25%, you must have $3,750 in equity in your account (25% of $15,000 = $3,750). So, in this example, since the $5,000 of equity in your account is greater than the maintenance requirement of $3,750, you are not in a maintenance call. But let's say the maintenance requirement is 40% instead of 25%. In this case, your equity of $5,000 is less than the maintenance margin of $6,000 (40% of $15,000 = $6,000). Here, you would be issued a $1000 Maintenance Call. SogoTrade will use best efforts to notify you; however, if you don’t meet the call, we have the right to close positions at our discretion to satisfy the call.

Reg T (RT) Call This type of margin call occurs when you open a position that exceeds your overnight buying power and then hold that position overnight. This call is a request for you to deposit additional equity to prove to the Fed you had the financial capacity to establish such a position. Reg T Calls can only result from opening transactions. Unlike a Required Maintenance call, equity depreciation cannot generate a Fed Call. Fed calls should be met with a new deposit, rather than by closing positions; although closing sufficient positions will satisfy a Reg T (Fed) call. If you close a position to meet a Reg T call, a Liquidation Violation may be charged to the account. These are also known as ‘strikes’. At SogoTrade, you are given 3 ‘strikes’ in your margin account before a 4th one would restrict the account to liquidation only for a 90 day period. Just remember, you can be charged a Liquidation Violation if you sell/close a position to cover a Reg T Call. This call is also sometimes referred to as a Federal (Fed) call. Hypothetically, let’s say you deposit $5000 cash to fund your account. You now have $10,000 ONBP and $20,000 DTBP (4 X your maintenance excess, as you have no positions in this example). You then place an order to buy 1000 shares of XYZ @ $15 per share and hold the position overnight. The principal amount is $15,000. You have overspent your ONBP by $5000, and would be in a $2500 RT Call ($15,000 X .5 = $7500 requirement). You can meet this call by depositing the entire amount in cash, or you could deposit securities with a value twice the amount of the call to meet it. Just remember, you can be charged a Liquidation Violation if you sell/close a position to cover a Reg T Call.

Day Trade Call (DT Call) A Day Trade Call occurs when there is insufficient Day Trade Buying Power (DTBP) to satisfy initial requirements on day trade transactions. This means you have exceeded (overspent) your beginning DTBP for the day, and then day traded (didn’t hold the position overnight). Day Trade calls can only be met with a deposit of new cash (or fully paid securities). You cannot sell securities to meet this type of call. New monies deposited to meet a DT call must stay in the account for at least two business days before withdrawal (at Sogotrade, if made by ACH, there is a 5 business day hold).

Hypothetically, let’s say you start the day with $5,000 of ONBP and $10,000 of DTBP. You then close $15,000 of a marginable position. Now you have $20,000 ONBP and the DTBP remains at $10,000 (note that your ONBP exceeds your DTBP in this scenario). You then place an order to buy 1000 shares of XYZ stock at $15 per share. The principal amount for this trade is $15,000. You have overspent your DTBP by $5000, but you have not exceeded your ONBP. In this case, if you were to sell the position that same day, you would have a $5000 DT margin call, since you overspent your initial DTBP and then day traded. If you were to hold the position overnight, no DT call would be issued.

Equity Maintenance (EM) Call An EM Call occurs when the equity in a Pattern Day Trader (PDT) account (see section on Day Trading) falls below $25,000. The EM call is the additional equity required to get the PDT account back to the required $25,000 so day trading can be permitted again. This call can be appreciated out of or a deposit of cash and / or securities in the amount of the EM call can satisfy it. A Margin account with 4 or more day trades in any rolling 5 business day period is considered ‘pattern’. If a PDT account begins the day with less than $25,000 equity and executes a day trade, the account will be closed at the clearing firm and restricted to closing transactions only for 90 calendar days. There is no way to lift this restriction. For example, depositing funds or closing positions cannot reopen a PDT account closed for day trading while the equity was below $25,000. While in an EM call, the account can still use the overnight buying power to open a new position and hold it overnight.

Good Faith Violation (GFV) This type of violation occurs in Cash Accounts ONLY. We are listing it here for informational purposes, as investors sometime get several of these before they decide for themselves that a margin account may actually suit their trading habits better. A GFV is issued when a position is opened using unsettled funds and then closed before the funding sale has settled. Settlement for a stock trade is trade date plus three business days. An easy way to remember this is T + 3. Settlement on option trades are T + 1. Customers can receive 4 GFV’s in a 12 month period; however, they should try to be avoided in the first place. When an account is issued its fourth GFV within that timeframe, the account will be restricted to settled funds only (intraday sales will no longer increase overnight buying power) for one year. A fifth violation will result in the account being closed (restricted to liquidations only).

Hypothetically, let’s say on Monday, April 10, a customer sells 100 settled shares of XYZ stock which generates proceeds of $5,000. This sale will settle on T+3, which is Thursday, April 13. He then uses those unsettled funds to purchase shares of ABC. On Wednesday, April 12, the customer sells the shares of ABC (that he is now selling before the funding sale of XYZ from April 10 will settle on the 13th). This customer will be issued a Good Faith Violation because he didn’t hold the purchase made with the unsettled funds until the original XYZ sale had settled.

Some Margin account risks… and tips to avoid Margin Calls.

Cross reference these points with our Education section on ‘Summary of Key Facts to Understand’

  • You can lose more funds than you deposit in a margin account.
  • The firm can force the closing of positions in your account.
  • The firm can close positions without contacting you.
  • You are not entitled to an extension of time to meet a margin call.
  • Make sure you fully understand how a margin account works. Margin accounts are not suitable to all Investors. Cash accounts are not subject to margin calls. It is important to take time to learn about the risks involved in trading securities on margin. Consult with your broker about any concerns you may have with your margin account.
  • Know the margin rules. To learn more, read FINRA Rule 4210 .
  • Know your firm's margin policies. Read our margin agreement and margin disclosure statement.
  • Be careful when trading securities with higher margin maintenance requirements. It is possible to receive inflated buying power figures when doing so. Also, firms can increase requirements at any time, putting you at greater risk to be put into a call.
  • If using margin, you may not want to use all of your available buying power to trade securities. For example, you may want to keep some money in a separate account so that you can promptly meet a margin call, if issued. This way, you leave your account some cushion should the value of the securities move against you.
  • Manage your margin account. Margin accounts require monitoring. Review the price of the securities in your margin account on a daily basis, if you can. If you see that the securities in your account are declining in value, you may want to consider depositing additional cash or securities in an attempt to avoid a margin call. If you receive a margin call, act promptly to satisfy it. By depositing cash or closing positions that you choose, you may be able to avoid your firm liquidating or selling securities it chooses.

Also of importance, you don’t have to maintain a debit balance when you utilize a margin account. You do not have to take advantage of any extra buying power, greater than your cash balance offered. You can choose to ignore the extra buying power and only trade within your cash balance. Only debit balances held overnight will be subject to margin interest.

It is important that investors take time to learn about the risks involved in trading securities on margin, and investors should consult their brokers regarding any concerns they may have with their margin accounts. See more at: http://www.finra.org/investors/purchasing-margin-risks-involved-trading-margin-account .

Where can I learn more about options trading?

For information on options fundamentals and options trading, please visit our options education center.

What are the options trading levels for margin accounts?

Options Strategies Available:

Level 1 Covered calls, including:
Covered calls sold against stocks held long in your brokerage account

*Minimum Equity/Margin Requirement:
A margin or cash account is required to place Level 1 trades. No additional margin requirements.

Level 2- All Level 1 strategies, plus:
Married puts
Long calls
Long puts
Long straddles
Long strangles
Covered puts (short stock and short put position)

*Minimum Equity/Margin Requirement:
A margin or cash account is required to place Level 2 trades. No additional margin requirements

Level 3- All Level 1 and 2 strategies, plus:
Equity debit spreads-
Equity credit spreads

*Minimum Equity/Margin Requirement:
A margin account is required to place Level 3 trades . No additional margin requirements

Level 4 -All Level 1, 2, and 3 strategies, plus:
Naked equity puts

*Minimum Equity/Margin Requirement:
A margin account is required to place Level 4 trades. There is a $2000 initial equity requirement to place level 4 options trades.

Level 5- All Level 1, 2, 3, and 4 strategies, plus:
Naked equity calls

*Minimum Equity/Margin Requirement:
A margin account is required to place Level 5 trades. There is a $2000 initial equity requirement to place level 5 options.

Level 6- All Level 1, 2, 3, 4 and 5 strategies, plus:
Naked index calls
Naked index puts

*Minimum Equity/Margin Requirement:
A margin account is required to place Level 6 trades. There is a $2000 initial equity requirement to place level 6 options trades.

What are the options trading levels for cash accounts?

Options Strategies Available:

Level 1 Covered calls
Level 2 Level 1 strategies plus long option positions

What determines the option trading level for which I can be approved?

The determination of which options level is suitable for you is based on the financial and personal information provided on your options account application or options upgrade application.
Please make sure to update accurately the Primary User Investment Information/Options Experience.
There are six options levels—1 through 6.
Level 1 is suitable for the conservative options investors while level 4-6 is reserved for the most aggressive / risk tolerant option investors. There is a $5,000 minimum equity requirement necessary for SogoTrade customers to receive level 4 or higher options level approval.
Approval is based on our review and discretion and may be different from the option trading level requested.

When will my deposited funds be available for trading options?

Funds availability depends on the method of funds transfer.

Wire Transfer 1 business day
ACH Electronic Transfer 5 business days after receipt of funds
Check deposit 10 business days after receipt of check
What are the margin and account requirements necessary to receive the different levels of option trading approval?

Funds availability depends on the method of funds transfer.

Level 1 $0 minimum initial equity requirement
  No additional margin requirements
Level 2 $0 minimum initial equity requirement
  No additional margin requirements
Level 3 Level 3 strategies require a margin account
  $0 initial equity requirement.
Level 4 Level 4 strategies require a margin account
  $5,000 initial equity requirement
Level 5 Level 5 strategies require a margin account
  $5,000 initial equity requirement
Level 6 Level 6 strategies require a margin account
  $5,000 initial equity requirement
What is SogoTrade's options exercise policy?

Customers that exercise a long option contract will pay the full aggregate exercise price provided for by the option contract. We will accept exercise instructions for same-day execution on business days prior to 4:30 p.m. ET for index option contracts, and prior to 4:30 p.m. ET for equity option contracts. On the business day preceding the expiration date for any particular option contract, we'll accept exercise instructions until 5:00 p.m. ET.

To exercise an option, please contact customer support at (646) 885-6486 with your instructions.
There is a $15.00 charge for exercises and assignments.

Automatic Exercises:

All expiring equity and index options that are at least $0.01 In the Money (ITM) will be eligible for automatic exercises at expiration—after market close on the expiration day — however, SogoTrade may or may not exercise your option automatically. We may need to contact you for further instructions. If we are unable to reach you, we may not be able to proceed with the exercise. In some instances, there may not be enough equity in the account to make full settlement on the terms of the option. In others, not all ITM options have economic value and their exercise would not be in your best financial interest.

Please see the OCC's expiration calendar at:
http://www.optionsclearing.com/about/publications/expiration-calendar.jsp
There is a $15.00 charge for automatic exercises and assignments.

Do Not Exercise (Contrary Exercise) Instructions:

In order to prevent the exercise of an automatic option on expiration, please contact customer support at (646) 885-6486 and provide your instructions.
Please note that Do Not Exercise instruction can only be accepted on expiration date.

Exercise (Contrary Exercise) Instructions:
In order to prevent the expiry of a non-automatic option on expiration, please contact customer support at (646) 885-6486 and provide your instructions.

What is SogoTrade's option assignment policy?

SogoTrade allocates the assignment of exercise notices among short positions according to an automated procedure. This procedure randomly selects from among all short option positions (including positions established on the date of assignment) those contracts that are subject to exercise.
All American-style short option positions are liable for assignment at any time. The assignment process may result in multiple partial assignment and/or multiple transactions to fulfill a single assignment, and a separate commission charge will apply to each partial assignment or transaction needed to complete an assignment.

How much does SogoTrade charge for option exercises and assignments?

There is a $15.00 charge for exercises and assignments.

In what increments do options Trade?

Options normally trade in increments of 5 or 10 cents depending on the value of the underlying.

However, The SEC has requested that the options exchanges commence a pilot to trade options in one cent increments. This program will continue to expand through out the year.

Here is the list of eligible underlyings:

https://www.cboe.org/publish/PennyPilot/PennyPilotClasses.csv

The pilot allows for trading increments of one cent for bids/offers up to $3 and 5 cents for bids/offers above $3, for each of the symbols in the pilot except for QQQQ. The symbol QQQQ will trade in one-cent increments for all prices.

Each exchange either has filed or will file rules that describe the trading increments for the pilot stocks, changes that result from one-cent increments, various reports to measure the impact of the pilot, and plans for quote mitigation.

Do I need to take any action on expiration day if my expiring options are In-the-Money (ITM)?

For long option positions, automatic exercise will occur for all equity options in the money by $0.01 or more.
For short option positions, you have no control over assignment. The only way to avoid assignment is to trade out of the position before the expiration of that contract.

It is very important if you have positions that are ITM that you keep a close eye on these positions and understand what your choices are for these options on Expiration Day:

Choices:
• You can proactively close the option position. In order to avoid a possible margin call for an exercised or assigned position(s) that would exceed your buying power after expiration, you should take market action by Expiration Day 3PM ET to close out that position.
• You can decide to keep the position open if you have adequate buying power available to take possession of the resultant long or short underlying position.
• You also can submit a Do Not Exercise (DNE) instruction on any of your in-the- money options. Do Not Exercise Instructions: In order to prevent the automatic exercise of an option that is In-the-Money, please contact customer support at (646) 885- 6486 and provide your instructions. Please note that Do Not Exercise instruction can only be accepted on expiration date.

What happens if there isn’t enough equity to cover the resultant equity position of an expiring ITM Option?

During expiration days, SogoTrade closely monitors all expiring option positions. If you do not manage the expiration risk in your account prior to 3 PM ET, SogoTrade reserves the right to buy, sell, or otherwise close positions to manage the risk in your account.

Actions Include:
-SogoTrade may close out the position on your behalf
- SogoTrade may enter a Do Not Exercise (DNE) instruction.
- SogoTrade may initiate closing stock trades in the after-hours market to cover any resultant position.

Usually we will allow a client to take action in their own account by 3:00 PM ET if we are alerted in a timely fashion.
If SogoTrade has to take action above the normal course of action, we may charge a $75 ( base rate ) Plus $50¢ per contract options management mitigation fee.

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Contact Information

  • Nationwide Call Center
  •  US: 1-888-709-7646
  •  Outside US: 1-646-885-6594
  • Service Hours                    
  • Monday - Friday
  • 7am - 8pm ET