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General FAQs
- Do you provide recommendations?
- Do you have other branches?
- Can I trade futures and equity options from the same account?
- Will someone assist me with order placement?
- Who are the "hot" advisors?
- How long will it take to get started?
- What criteria determine if I am suitable for trading?
- I subscribe to an advisory service provided by an option newsletter. Can you receive the fax of the advisory service and execute the trades for me?
- Do you handle Individual Retirement Accounts?
- Are options IRA-eligible?
- Do you charge any additional fees?
- What are your online commission rates?
- Will my securities account be insured?
- How do you handle margining?
- Do you have any guidelines for accepted orders?
- What is your minimum opening account size?
1. Do you provide recommendations?
MF Global Inc. will help you develop a customized strategy and implement a trading plan based upon your investment goals and risk tolerance.
2. Do you have other branches?
MF Global has several offices; however, most of our private client securities accounts deal through our Chicago office. We believe that we can keep our rates more competitive by not adding the overhead costs of branch offices.
3. Can I trade futures and equity options from the same account?
All of the representatives at MF Global Inc. are licensed to handle both futures and securities. The answer to the question is no however. To trade both futures and securities with us you will need to open both a futures account and a securities account. Monies may be transferred between accounts at no cost.
4. Will someone assist me with order placement?
Yes. We will work with you and help you place the order. We don't want to intimidate or rush anyone. If we can educate our customers, we can avoid errors and develop an efficient method for taking orders.
5. Who are the "hot" advisors?
We don't make specific trade recommendations, and we advise traders to use prudence in this area as well: An advisor who is "hot" today may be "cold" tomorrow. If you are interested in a particular market or strategy, we may be able to provide you with a phone number for an advisor who is serving your area of interest. In all cases, we strongly advise all customers to obtain as much information as possible about a service or an advisor before subscribing or making a trade.
6. How long will it take to get started?
Normally about a week from the time of your initial call, provided you complete and return the information right away and provided the mails go smoothly.
7. What criteria determine if I am suitable for trading?
By rule and regulation, each firm is required to obtain and review the following information specific to each customer:
Annual Income, Liquid Net Worth, Net Worth (excluding homestead), Option Trading Experience, Date of Birth, Marital Status, Number of Dependents, Employment Status, Nature of Business, and Customer's Primary Investment Objectives. These criteria are considered in relation to each other to determine a client's appropriateness or suitability with regard to the types of trading a client may wish to do.
8. I subscribe to an advisory service provided by an investment newsletter. Can you receive the fax of the advisory service and execute the trades for me?
Yes, we can do that for a number of fax advisory services, but not for all. It requires that you complete a Discretionary Account Form with Third Party Limited Trading Authorization which authorizes us to execute on your behalf trades specified by the advisory service. All such instructions are valid until you revoke them in writing or provide us with new instructions. We have found this service to be particularly useful to customers who, because of other responsibilities or interests, are frequently away from their fax machines. If you are interested in this particular service, please contact us for more complete information.
9. Do you handle Individual Retirement Accounts?
Yes.
10 Are options IRA-eligible?
Yes. MF Global Inc. allows covered calls and protective puts and outright option purchases if approved.
11. Do you charge any additional fees?
There are no additional fees for any type of order.
12. What are your online commission rates?
Stock: $14.95 up to 5000 shares. Add $0.01/share for share quantities exceeding 5000.
Options: $14.95 + $1.50/contract
Note: Broker assisted trading is available at a higher commission rate. Click here for commission details.
13. Will my securities account be insured?
Yes, your securities account may be SIPC insured. Securities trading accounts are protected against firm failure -- but not trading losses-- up to $100,000 in cash plus $400,000 in securities or a total value of $500,000 with no more than $100,000 in cash.
14. How do you handle margining?
Once account opening minimums have been satisfied, equity option positions may be margined at exchange minimum requirements; however, MF Global Inc. reserves the right to charge above the exchange minimum margins in its sole discretion. All securities accounts are opened as margin accounts. Customers may, of course, trade them as cash accounts. We attempt to approve all option accounts to the level of equity put writing which is permitted in a $10,000 account. This enables us to accept conventional orders quickly without having to screen each trade.
SPECIAL NOTICE EFFECTIVE APRIL 15, 2000:
CHANGE IN SECURITIES MARGIN REQUIREMENTS
Due to increased market volatility new securities margin requirements are in effect immediately for all MF Global Inc. securities account holders. The new requirements are:
STOCK
Equity maintenance requirement at 35%.
Reg T (initial) will remain at 50% for all initial equity purchases.
SHORT EQUITY OPTIONS
20% of underlying security, less out of the money, to a minimum of 10% of underlying security plus preminum.
NOTE: Long options must be paid for in full at the time of purchase and cannot be borrowed against.
SHORT INDEX OPTIONS
20% of underlying index, plus premium.
15. Do you have any guidelines for accepted orders?
Yes. MF Global Inc. accepts stop orders in most markets;* we suggest, however, that you check with us first, especially if you are active in a particular equity or index. We also accept spread orders and GTC's (Good Till Cancelled).
16. What is your minimum opening account size?
Minimum opening account size is $5,000 for individual or joint accounts and $10,000 for corporations, partnerships or trusts. Traders wishing to sell naked equity calls or any naked index options are required to have at least $100,000 in equity. These amounts are subject to change at MF Global Inc.'s sole discretion.
*Subject to change.
**The firm reserves the right to change commission rates without notice at any time. |
