What are the computer system requirements for DirectAccessElite?

Processor: Pentium II 400mhz+
RAM: 64 MB (128 MB recommended)
Modem: 56k, but recommend ISDN or DSL
We deem that AOL is not an appropriate ISP for use with our product.

What is the difference between "Online Trading" and "Direct Access Day Trading?"

There are two different tools used on the Internet for trading. Direct access systems, using specialized software, are used for Day Trading. Your browser and an investment Web site are used for Online Trading.

Direct Access is more rapid than the web based systems. It uses a NASDAQ Level II screen and order routing to market makers and ECNs (electronic communications networks). Direct access is suitable for day traders who trade for a living and can work in front of their trading screens all day long. DirectAccessElite is Scottsdale Capital Advisors' direct access systems. Market volatility and volume may delay system access and trade execution.

What is the difference between the different ECN's offered on DirectAccessElite?

Different ECNs are appropriate at different times based on differing factors:
  • Stock Type - where the stock is traded
  • Stock Liquidity - how active is the stock traded throughout the day
  • Order Type - limit, market, stop-mkt, trailing stop, etc.

ARCA - Works for NASDAQ and Listed and OTCBB stocks. All order types are supported. This is the only route that supports trailing stops. ARCA will work your order for you, meaning that if you place a trade not currently executable on the ARCA book then ARCA will go to other exchanges, ECNs, or market makers to find you a fill. Sometimes on listed orders ARCA's execution may appear slower because it had to send your order to be worked on an exchange manually by exchange personnel.

ISLD - Good for limit orders on liquid securities especially ETF's (QQQ, DIA, SPY). Island posts your limit order on its book, but does not seek execution outside of its own book. ISLD only accepts limit orders and limit order hybrids.

NYSE - Only used for NYSE stocks. Used for limit and market orders. Your order is routed to Belzberg Trading who own a seat on the exchange.

AMEX - Only used for AMEX stocks. Used for limit and market orders. Your order is routed to Belzberg Trading who own a seat on the exchange.

ADP - Option orders exclusively. You must preference which option exchange you wish to route your order to within ADP.

SOES - Good for Nasdaq market orders if something is wrong with ARCA.

If you don't see an ECN from the platform list here then you shouldn't use it.

What is Margin and how do I use it to trade?

The securities industry, in order to encourage securities trading activity, permits securities Broker-Dealers to loan their customers part of the cost of the securities they purchase. Through this borrowing from their Broker Dealers to buy securities, the customer is able to buy more securities with the same amount of cash.

Risks associated with trading of margin:

  • When trading on margin, customers can lose more funds than initially desposited.
  • The firm can force the sale of the securities in the customer's account without notice to the customer.
  • The firm can dictate which security is selected for liquidation.
  • The customer is not entitled to an extension of time on a margin call.

For a detailed explanation of Margin click here.

What is "Short Selling?"

Selling short is a strategy for making profits on the decline of an individual stock. The short-selling investor initially borrows stock from the broker/dealer, then sells the stock into the market. The trader anticipates that the price of the stock will go down enough to allow him to replace the borrowed stock at a lower price at a later date.

For a detailed explanation of Short Selling click here.

What coverage is provided with my account?

All accounts are covered by the Securities Investors Protection Corporation (SIPC). SIPC coverage is designed to protect customers cash balances and securities positions upon the insolvency of a Broker Dealer. SIPC will cover each seperate customer account for a maximum of $500,000 in equity, of which no more than $100,000 can be in cash. Any debit balances created through the purchase of securities in a margin account will be deducted from the equity prior to account settlement by SIPC.

In addition, Penson Financial Services, the clearing firm where your account will be held, has obtained additional insurance coverage, purchased through the National Union Fire Insurance Company of Pittsburgh, PA (a member company of American International Group).

Neither SIPC nor excess SIPC cover trading losses.

FAQ - Risk/Disclaimers
All Trades Executed through Scottsdale Capital Advisors (Member: FINRA, SIPC, NASDAQ and NYSE Arca)
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