Frequently Asked Questions

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Opening An Account

• Is there a minimum amount required to open an account?
• How do I transfer an account into optionsXpress?
• Do you open accounts for people outside the U.S.?
• Why do I have to disclose personal information to open an optionsXpress account?
• What are the requirements when I provide a government photo ID?
• What is the difference between a cash account and a cash/option account?
• What level of options trading will a customer be approved for?
• How are accounts protected?
• If I open an account online, do I still need to send in paperwork?
• Can I fax or email my account paperwork?
• What types of accounts do you offer?
• When will an account be ready for trading?

Is there a minimum amount required to open an account?

We have no minimum deposit required to open an account; however, the account must have enough buying power to pay for a trade before it is placed. Please review your trading strategy and fund the account to the appropriate level. Again, no minimum is required to open a cash account, but a $2,000 minimum is required to maintain a margin account.

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How do I transfer an account into optionsXpress?

An Account Transfer Form will need to be completed and returned to us with a copy of the most recent statement showing the title of the account, the account number, and an asset list. A signed account transfer form is required for each account being transferred to us. For more detailed information on transfers, please see the Account Transfer FAQs.

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Do you open accounts for people outside the U.S.?

Yes, upon our review and at our discretion we accept unsolicited accounts from non-U.S. residents. Although our account opening process is geared toward opening accounts for persons with a U.S. domestic address, we will review and open foreign accounts depending on the country of residence and at our discretion. Please note that we are a U.S.-based broker. We offer only U.S. exchange traded products and we accept only U.S. currency in our customer accounts.

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Why do I have to disclose personal information to open an optionsXpress account?

Due to regulatory requirements and the United States government's efforts to fight terrorism and fraud, U.S. brokerages have been required to obtain, verify and record information about persons who open accounts and certain individuals related to them, including account signatories (in the case of entity accounts) and persons authorized to trade on behalf of accounts (LTAs).

For more information please see the following FINRA document (PDF).

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What are the requirements when I provide a government photo ID?

All three of the following requirements must be met when providing a photo ID:

• Valid non-expired government ID
• Evidencing nationality or residence
• And bearing a photograph or similar safeguard

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What is the difference between a cash account and a cash/option account?

The "Cash Account" does not permit options trading. The "Cash/Options" account will allow options trading, but only fully-paid-for options, like long calls or puts, cash secured puts, spreads, etc. Any IRA that trades options would be a cash/option account.

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What level of options trading will I be approved for?

Clients will be authorized to trade options after being reviewed based on experience and financial background among other criteria. Accounts will receive one of the following option trading levels:

Trading Level Basic Definitions
	-1	0	1	2	3	4	5
Trading Disabled	x
Trading Stocks / Bonds / Mutual Funds		x	x	x	x	x	x
Covered Call Writing / Short Stock Sales			x	x	x	x	x
Buying Calls and Puts / Covered Put Writing				x	x	x	x
Debit Spreads					x	x	x
Credit Spreads / Equity Put Writing						x	x
Naked Equity Call Writing / Naked Index Put & Call Writing							x

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How are accounts protected?

We are a member of SIPC, the Securities Investor Protection Corporation, which protects against losses caused by the financial failure of the broker-dealer, but not against but not against losses resulting from depreciation in a security's value. Your optionsXpress accounts are protected by the Securities Investor Protection Corporation (SIPC), up to $500,000 (including up to $100,000 for cash claims).

Additionally, optionsXpress at its own initiative, and at no additional cost to you, has secured excess SIPC coverage offering your account additional account protection beyond SIPC's limits. optionsXpress' excess SIPC policy covers in the aggregate up to $100,000,000 each and every loss, subject to a maximum limit of $24,500,000 per customer, $900,000 of which may be cash.

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If I open an account online, do I still need to send in paperwork?

optionsXpress does not currently have a paper application. The initial account process begins online and will prompt you to print out and sign the application at the end. Please note that optionsXpress may request additional information, such as a photo ID, to set up your account. On October 1st, 2003, new U.S. government regulations came into effect requiring that we verify your identity.

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Can I fax or email my account paperwork?

Most of our account documents are accepted via fax. Certain forms may require originals:

Document Requirements
Document Name	Fax & Email Acceptance
Accounts - General
Account Overview (Account Application)	Accepted
Account Transfer Forms (ACATs)	Accepted
Non-ACAT Transfers	Not Accepted
Affidavit of Domicile	Accepted
Birth Certificate	Accepted
Death Certificate	Accepted
Divorce Decree	Accepted
Identification Cards (Photo IDs)	Accepted
IRS W-8	Accepted
IRS W-9	Accepted
Letter of Instruction (LOI) & Letter of Authorization (LOA)	Accepted
Letters Testamentary	Accepted
Margin and/or Option Updates	Accepted
Marriage License	Accepted
Statements (for account transfers)	Accepted
Transfer on Death Agreement	Accepted
Business - Entity Accounts
Articles of Incorporation	Accepted
Corporate Resolution	Accepted
Trust Agreement	Accepted
Trust Certification / ERISA	Accepted
Cashiering
Bank Statements	Accepted
Check Writing Application	Accepted
Letter of Authorization	Accepted
Limited Power of Attorney (LTA) & Full Power of Attorney (FPA)	Accepted
Stock Power of Attorney	Not Accepted
Verification of Deposit	Accepted
Retirements	Accepted
5304 - SIMPLE	Not Accepted
5305 - E (for Coverdell Education Savings accounts)	Accepted
5305 - SEP	Accepted
Coverdell Education Savings	Accepted
Designation of Beneficiary	Accepted
IRA Distribution Form	Accepted
Roll-Over Certification	Accepted

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What types of accounts do you offer?

The three main types of accounts available for trading at optionsXpress are cash accounts, margin accounts, and futures accounts. We also offer multiple types of retirement accounts, including traditional, Roth, SEP and simple IRAs.

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When will an account be ready for trading?

An account is ready to trade when the account number and appropriate trading level has been assigned, and funds and/or assets have settled in the account. Domestically, most US persons can qualify for Electronic Signature applications for personal and retirement accounts, meaning they can be opened that same business day. Otherwise, accounts are generally opened within one or two business days of our receipt of the signed new account application documentation.

It is important to note that while funds from an incoming bank wire, cashier's check, or bank draft check are made available the next business day after they've been deposited, personal checks and ACH deposits are subject to a three business day hold. The cut-off for any deposit is 12:00 PM Eastern. Please see the Transfer Funds FAQs for more information.

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