Frequently Asked Questions

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XecuteSM (Auto-Trade)

Enrollment
Trading
What is Xecute?
Xecute is optionsXpress's automated trading service for subscribers of participating advisory newsletters. Xecute is a convenient program that places orders based on the recommendations we receive from your advisory newsletter and at your equity commitment level.
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How do I register for Xecute?
Please read our detailed registration instructions (login required), including the Authorization and Special Notices.
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Do I have to pay additional fees to use Xecute?
No. There are no additional fees to use Xecute. Trades are subject to our standard commission schedule.
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What is the minimum equity commitment required to start auto-trading with Xecute?
There is no minimum amount necessary to start trading with Xecute. Xecute will place trades in an account consistent with the amount allocated by the Xecute Settings page. If the amount entered is available, we will execute the trade. If sufficient funds are not available, we will not execute that trade.
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Which advisory newsletters are available to auto-trade with Xecute?
For more information about which newsletters are Xecute-eligible please view our Participating Investment Publisher List.
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Which advisory newsletters does optionsXpress recommend?
optionsXpress does not recommend one service over another.
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Does optionsXpress track the performance of the advisory newsletters?
No. The advisory newsletters are independent companies separate from optionsXpress. You will have to contact the advisory service directly for questions regarding performance.
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Are Xecute trades guaranteed?
The Xecute service is offered to you on a best effort, not-held basis. We do our utmost to enter the recommendations of advisory newsletters as quickly and efficiently as possible. While we have duplicate and back-up systems to ensure timely handling of orders, orders are subject to risk from errors of electronic systems, communications, markets and timing. In addition, other factors such as insufficient buying power in an account, subscription lapses, or missing selections on the sign-up page, may cause missed trades. Please note: In addition to the terms and conditions set forth in the Xecute Special Notices, the same risks and terms and conditions apply to Xecute trades as any other trade with our site – for more information, please visit our risk page.
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What do the "new next trade" and "close-out last trade" boxes mean?
Checking the "new next trade" box lets us know that you wish to participate in the next new trade issued by the advisory newsletter. Conversely, leaving this box unchecked lets us know that you do not want to participate in the next new trade recommended by your advisory newsletter.
Checking the "close-out last trade" box lets us know that you would like us to close out the auto-trade position consistent with the advisory newsletter alert. Conversely, leaving this box unchecked lets us know that you will closeout the position on your own. Please note: The investment publisher may not offer close-out trades, check the service prior to selecting this parameter.
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Which settings are necessary to participate in roll/hedge trades?
The "new next trade" and "closeout last trade" boxes must both be checked to participate in roll or hedge trades. If you wish to participate in these trades but do not wish to open any new positions, this may be accomplished by changing the trade amount to $0 and keeping both of the trade boxes checked.
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How much should I spend per trade?
Consistent with the self directed nature of optionsXpress accounts, it is the responsibility of the customer to decide how much to allocate per trade. Some advisory newsletters do offer recommendations. You may want to contact the publisher for this information.
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What happens if an account does not have sufficient funds to participate in a recommended trade?
If an account does not have sufficient funds to cover the amount allocated on your Xecute Settings page, we will not execute the order. For example, if a customer selects $1,000 per trade and the account has $800 in available funds when the trade is placed, we will not execute the order. Allocation parameters may be changed at any time.
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If I purchase additional shares/contracts on my own, will Xecute close these out consistent with the advisory newsletter alert?
No. Only the quantity opened using Xecute will be closed out. optionsXpress cannot know if you wish to closeout extra shares/contracts on your own or if you want to use Xecute to close this out for your account. As a result, trades you make without using Xecute must be handled by you directly (i.e. not using Xecute).
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If I sell part of my position will Xecute close out the rest of the position?
No. We will only close out the quantity opened with Xecute. If the original quantity is not in the account, the position must be closed without using Xecute. Please note: an exception will occur if the advisory newsletter recommends a partial closeout. In this case, Xecute will close out the percentage recommended by the newsletter, as long as the amount is available in the account.
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Why can't I cancel some Xecute orders on my order status page?
Customer orders entered using the Xecute service may be processed by optionsXpress separately from orders entered directly by other customers (i.e., not through the Xecute service). As a result, customers cannot cancel orders placed using Xecute through the optionsXpress web site, but can cancel orders by calling optionsXpress. Order cancellation remains subject to the risk that the order may have been executed prior to optionsXpress being able to cancel the order in the market place. To cancel these orders, simply call (888) 280-6505.
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What is the difference between % Cash Available and % Buying Power?
Xecute customers have the ability to select one of several allocation parameters. Allocation parameters tell Xecute how much to spend on each recommended trade. % of Cash Available and % of Buying Power are two allocation parameters available. If electing to auto-trade using one these parameters, margin balances may be used depending on the type of account you hold. Accounts are affected as described below:
  • Cash Accounts: The same amount is spent with either setting. There is no difference.
  • Margin Enabled Accounts. Selecting % of Buying Power will use available margin balances. Selecting % of Cash Available will use Cash Available. Important: margin balances may be used when selecting % of Cash Available. For example, assume a $10,000 margin enabled account has purchased $10,000 in marginable stock. The cash available to withdraw is $5,000. These funds will be used if % of Cash Available is selected.
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