What type of account can I open?
Lime Financial offers the following accounts:
- Joint with Rights of Survivorship
- Joint with Tenants in Common
- Traditional IRA
- Roth IRA
- Rollover IRA
- SEP IRA
- Limited Liability Company (LLC)
- Sole Proprietorship
What is an individual account?
An individual account is a standard investment account with only one owner. Upon death of the account holder, the account assets are transferred to the designated beneficiary/beneficiaries.
What is a Joint Tenants with Rights of Survivorship (JTWROS) account?
A JTWROS account is shared by two or more individuals, each account holder owns an equal portion of ownership in the account. Upon the death of one account holder, the account ownership is passed on to the surviving account holder(s).
What is a Joint Tenants in Common (JTIC) Account?
A JTIC account is shared by two or more individuals, with each account holder owning an equal or different percentage of the assets. Upon the death of one account holder, the specified percentage of the total account ownership is passed through the decedent’s estate.
What is a custodial account?
A custodial account is managed by a legal guardian or parent for the benefit of a minor. The amount invested is kept in the account until the minor reaches the age of the majority. A custodial account may be the Uniform Gift to Minors Act (UGMA) and Uniform to Transfer to Minors Act (UTMA). All states permit UGMA accounts. Vermont and South Carolina do not allow UTMA accounts (as of 2020).
What is a traditional IRA Account?
Traditional IRAs let individuals contribute pre-tax dollars to a retirement investment account, which can grow tax deferred until retirement withdrawals occur (at age 59 ½ or later). In most cases, contributions to traditional IRAs are tax deductible. When the individual withdraws money from the account during retirement, those withdrawals are taxed at their ordinary income tax rate. The IRS restricts the amount that one may add to a traditional IRA each year, depending on age. The contribution limit for the 2022 tax year is $6,000 for savers under 50 years of age. For people aged 50 and above, higher annual contribution limits apply via a catch-up contribution provision, allowing for an additional $1,000 (or a total of $7,000).
Account holders can take distributions as early as age 59 ½. Starting after age 72, account holders must take required minimum distributions (RMDs) from their traditional IRAs. Funds removed before full retirement eligibility incur a 10% penalty (of the amount withdrawn) and taxes, at standard income tax rates. There are exceptions to these penalties for certain situations.
For more information, please click the IRS website on IRAs.
What is a Roth IRA Account?
A Roth IRA is funded with after-tax dollars; the contributions are not tax deductible. Once you start withdrawing funds, the money is tax free. Contributions can continue to be made at any age, as long as the account holder has earned income. The account holder can maintain the Roth IRA indefinitely; there are no required minimum distributions (RMDs) during their lifetime.
A person can’t contribute to a Roth IRA if he/she makes too much money. In 2022, the limit for singles is $144,000 and for married couples, $214,000. In 2022, the contribution limit is $6,000 a year unless you are age 50 or older, in which case, you can deposit up to $7,000.
For more information, please visit the IRS website.
What is a rollover IRA account?
A rollover IRA is a transfer of funds from a retirement account into a traditional IRA or a Roth IRA. The purpose of a rollover is to maintain the tax-deferred status of those assets. IRA rollovers are subject to some strict rules including the transfer of funds to be made between accounts.
What is a SEP IRA account?
A simplified employee pension (SEP) is established by an employer or a self-employed person. The employer is allowed a tax deduction for contributions to each eligible employee’s plan on a discretionary basis. Eligibility requirements for contributors include a minimum age of 21, at least three years of employment, and a $600 compensation minimum. The SEP IRA allows employers to skip contributions during years when business is down. Contributions made by employers cannot exceed the lesser of 25% of an employee’s compensation or $61,000 in 2022. Withdrawals from SEP IRAs in retirement are taxed as ordinary income.
For more information, please click the IRS website on SEP accounts.
What is a corporate account?
A corporate account is opened in the name of an incorporated business; a corporate account is managed by its officers or authorized traders.
What is a Limited Liability Company (LLC) account?
An LLC is a business structure allowed under state statutes in the U.S. where the owners are not personally liable for the company’s debt or liabilities. Regulations vary from state to state. LLCs are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship. LLCs may elect not to pay federal taxes. Profits and losses are listed on the personal tax returns of the owner(s) or they may choose a different classification, such as a corporation.
What is a partnership account?
A partnership account is established by two or more persons in which each person has equal liability. The account holders may or may not have a written agreement on the rights and obligations each one has in the partnership account. A tax identification number is required to open a partnership account.
What is a sole proprietorship account?
A sole proprietorship is an unincorporated business that has just one owner who pays personal income tax on profits earned from the business. A sole proprietorship has no separate legal existence or identity beyond that of the sole proprietor. Sole proprietorship accounts may be called “Doing Business As” or “DBA” accounts and reference “Doing Business As” or “DBA” in the account title.
What is a trust account?
A trust account is a legal arrangement through which funds or assets are held by a third party (the trustee) for the benefit of another party (the beneficiary). The beneficiary may be an individual or a group. Ownership of the assets must be transferred to the trust. The trustee has a fiduciary duty to consider the best interests of the beneficiaries first in any decisions. The trustee is responsible for annual tax returns and may be required to file regular accountings at the request of beneficiaries, depending on state law. All distributions to the trust beneficiary and other related expenses must be paid from the trust account.
How do I apply for an account?
Apply for an account through our online account application by clicking on the yellow “Open Account” button. The account requirements and document requirements are also shown on this link.
What are the documents required to open an account?
The documents required depend on the account type you choose and on your country of citizenship/residence. Please visit https://open.lime.co/register for more information.
What is the minimum funding amount?
The minimum funding amount depends on your country of citizenship/residence. You may check the funding requirements at https://open.lime.co/register.
How long does it take to open an account?
Please allow 1-2 business days upon receipt of your application for your account to be open. We will send you an email notification regarding your account approval status.
Who can open an account?
U.S. citizens, U.S. residents and foreign citizens are welcome to open a Lime Trading account. You must be at least 18 years of age to open an account.
I live outside of the United States. Can I open an account with you?
Citizens who reside outside of the United States are welcome to apply.
Due to changes to investment regulations in non-U.S. jurisdictions, citizens of certain countries may not be able to open accounts. Certain foreign accounts may also be limited to certain offerings (i.e. no margin.) For more information, please contact [email protected].
To ensure compliance with all Federal legislation, sanctions and AML regulations and guidance, including the FATF, OFAC and FinCEN, Lime Trading Corp “LTC” will not open accounts for; disburse or accept funds to or from; or transfer securities to or from customers residing in, a citizen of, or financial institutions located in the following countries:
- Afghanistan (Islamic Republic of Afghanistan)
- Bosnia & Herzegovina
- Central African Republic
- Cuba (Republic of Cuba)
- Democratic Republic of the Congo (formerly Zaire)
- Guyana (Co-operative Republic of Guyana)
- Iran (Islamic Republic of Iran)
- Iraq (Republic of Iraq)
- Laos (Lao People’s Democratic Republic)
- Libya (State of Libya)
- North Korea (Democratic People’s Republic of North Korea)
- Somalia (Federal Republic of Somalia)
- Syria (Syrian Arab Republic)
- Uganda (Republic of Uganda)
- Vanuatu (Republic of Vanuatu)
- Venezuela (Bolivarian Republic of Venezuela)
- Yemen (Republic of Yemen)
LTC will not currently open accounts for individual residents or legal entities or financial Institutions located and operating in the following countries. The Firm will accept funds from or disburse funds to current account holders provided the transaction doesn’t violate any Federal legislation, sanctions, or AML regulations and guidance:
- Belarus (Republic of Belarus)
- Russia (Russian Federation)
Enhanced Due Diligence Countries
LTC will exercise extra caution and additional due diligence when opening an account for; or disbursing or accepting funds to or from; or transferring securities to or from a customer residing in, a citizen of, or financial institutions located in any of the following countries, which present increased risk of money laundering and/or terrorist financing activities:
- Albania (Republic of Albania)
- Algeria (People’s Democratic Republic of Algeria)
- Angola (Republic of Angola)
- The Bahamas (Commonwealth of the Bahamas)
- Botswana (Republic of Botswana)
- Burkina Faso
- Burma (Myanmar / Republic of the Union of Myanmar)
- Burundi (Republic of Burundi)
- Cambodia (Kampuchea)
- Cameroon (Republic of Cameroon)
- Chad (Republic of Chad)
- Cote d’Ivoire (Republic of Cote d’Ivoire / Ivory Coast)
- Eritrea (State of Eritrea)
- Ethiopia (Federal Democratic Republic of Ethiopia)
- Gambia (Republic of the Gambia)
- Ghana (Republic of Ghana)
- Guinea (Republic of Guinea)
- Guinea Bissau (Republic of Guinea-Bissau)
- Haiti (Republic of Haiti)
- Kuwait (State of Kuwait)
- Latvia (Republic of Latvia)
- Lebanon (Lebanese Republic)
- Lesotho (Kingdom of Lesotho)
- Liberia (Republic of Liberia)
- Madagascar (Republic of Madagascar)
- Mali (Republic of Mali)
- Mozambique (Republic of Mozambique)
- Namibia (Republic of Namibia)
- Nepal (Federal Democratic Republic of Nepal)
- Nicaragua (Republic of Nicaragua)
- Niger (Republic of the Niger)
- Pakistan (Islamic Republic of Pakistan)
- Palestinian Territory
- Panama (Republic of Panama)
- Papua New Guinea (Independent State of Papua New Guinea)
- Paraguay (Republic of Paraguay)
- Sao Tome and Principe (Democratic Republic of São Tomé and Príncipe)
- Serbia (Republic of Serbia)
- South Sudan (Republic of South Sudan)
- Sri Lanka (Democratic Socialist Republic of Sri Lanka)
- St. Kitts and Nevis (Federation of Saint Christopher and Nevis)
- St. Lucia
- Sudan (Republic of the Sudan)
- Tanzania (United Republic of Tanzania)
- Trinidad and Tobago (Republic of Trinidad and Tobago)
- Tunisia (Republic of Tunisia)
- Ukraine (Crimea is the area of concern. Particular towns to be aware of include: Sevastopol, Feodoisa,
Kerch, Yevpatoria / Eupatoria, and Yalta.)
- United Arab Emirates
- Zambia (Republic of Zambia)
What platforms are available for trading?
3rd Party Platforms:
Lime Pro (Only through WedBush at this time)
Are there any fees to trade on any platform?
ETNA, Lime Trader, and Lime Meta: No additional fees
Lime Pro: $200/month + market data fees
Plan Requirements and Minimums
What is the minimum balance required to begin trading under the Per-Trade Plan?
The minimum funding amount depends on your country of citizenship/residence. You may check the funding requirements at https://open.lime.co/register.
What is the monthly fee for the Per-Trade Plan?
There is no monthly fee for the Per-Trade Plan.
What is the minimum balance required to open an options account?
The minimum balance required to open an options account varies depending on your option level.
Option level 1 & 2 has no minimum balance.
Option level 4 has a minimum account equity of $25,000.
Option level 5 has a minimum account equity of $100,000.
What is the minimum balance required to open a margin account?
The minimum balance required to open a margin account for domestic and regular foreign accounts is $2,500. The minimum balance required to open a margin account in enhanced due diligence and high risk countries is $5,000.
What is the commission for option trading?
The commission for options trading is $0.50 per option contract.
What are the requirements for trading OTC Stocks?
OTCBB and Pink Sheet stocks must be DTC/CNS eligible and close at $0.25 or higher. Stocks that settle foreign will not be permitted. Lime Trading does not allow incoming account transfers that contain OTC securities.
How do I fund my Lime Trading account?
Domestic accounts may fund their Lime Trading account through a wire, ACH, or account transfer. Foreign accounts may only fund via wire and account transfer at this time. No 3rd party transfers. Funding must originate or be going out to an account with matching title. Please find funding instructions inside My Account.
Can I fund my account by credit card, debit card or PayPal?
No, funding your account with a credit card, a debit card, PayPal, traveler’s checks or credit card checks will not be accepted.
What is an ACH transfer?
Automated Clearing House (ACH) transfers are electronic money transfers, bank to brokerage, processed through the ACH Network. There is no fee associated with your Lime Trading account to establish this relationship or to transfer funds. The process is paperless — no lost checks, no postage charges. Please note that ACH relationships cannot be established for IRA accounts at this time.
How long does it take to transfer funds via ACH?
Transferring funds via ACH takes approximately 1-3 business days. There is a hold of 5 business days to trade with funds deposited via ACH. You may have this hold lifted by submitting proof that the funds have cleared your bank account to [email protected] or fax +1 (646) 381-3624. ACH deposits may be withdrawn via ACH after 10 business days of the original deposit. Otherwise, ACH deposits may be withdrawn via check, wire or ACAT after 60 calendar days have passed from the original date of deposit. If client has funds in the account to cover the deposit, we will make funds available the following day. For example, if the total equity is $10,000 and client deposits $10,000 or less, then we will allow the funds to go through.
How much does it cost to set up/use an ACH?
There is no cost involved with an ACH deposit, withdrawal, or activation. To set up an ACH, please submit the ACH activation form via document upload or scan and email it to [email protected].
What are the min/max deposit & withdrawal amounts for ACH?
There is a $100.00 minimum for all ACH requests in/out.
The daily maximum for inbound requests is $25,000.00, and the daily maximum for outbound requests is $100,000.00.
How do we set up ACH?
ACH may be setup through your account portal at https://myaccount.lime.co/dashboard/cashmanagement. You will need to complete the online form and submit a bank statement showing routing and account number. After an ACH link is established, a customer may use it to do incoming and outgoing ACH transfers without any more paperwork.
How do we set up wires?
Wires may be setup through your account portal at https://myaccount.lime.co/dashboard/cashmanagement. You will also need to submit a recent bank statement for the receiving account.
Do you accept money orders or Western Union?
No, we do not accept money orders or Western Union for deposits.
Do you accept third-party transfers?
Deposits by a third party will not be accepted under any circumstances. We do not send third party transfers.
How long does a domestic wire transfer take?
Domestic wire transfers can take up to 24 hours provided, all account information is correct on the wire transfer. Incorrect or missing account information may delay the credit of your wire transfer to your Score Priority account.
How long does a foreign wire transfer take?
Foreign wire transfers originating from a non-U.S. bank generally take 24 to 48 hours (though this may vary depending on the country of origin) for our clearing firm to receive and post funds. Incorrect or missing account information may delay the credit of your wire transfer to your Score Priority account.
What do you charge for outgoing account transfers?
There is no charge for ACH withdrawals. Normally, accounts are charged $80 when they transfer an account (ACAT out). The fee to transfer out and effectively close an IRA is $80. Physical and/or foreign settlement fees apply.
Order Types & Securities
What is a market order?
A market order is an order to immediately buy or sell a stock or other assets at the best available price, effective for same day orders.
What is a limit order?
A limit order is an order to buy or sell a security or other assets at a specified price or better. A buy limit order is executed at the limit price or lower, and a sell limit order is executed at the limit price or higher.
What is a stop order?
A stop order is an order to buy or sell a security or other assets when a specified price is reached. Once the specified price is reached, the order becomes a market order. A buy-stop order is entered at a stop price above the current market price. A sell-stop order is placed below the current market price.
What is a stop-limit order?
A combination of a stop order and limit order. Once the specified stop price is reached, the order becomes a limit order to buy or to sell at the specified limit price or better.
What is a GTC (good till canceled) order?
A GTC order is an instruction to buy or sell a security or other assets that remains in force until the order executes, expires at a specified time, or cancels.
May I trade during extended hours?
Yes. Trading during extended hours is subject to a commission surcharge of $0.003 per share. This fee applies to orders executed on the Electronic Communication Network (ECN). Extended pre-market trading is available between 7:05 a.m. – 9:30 a.m., EST. Extended after-hours trading is available between 4:00 p.m. – 8:00 p.m. EST.
How do I cancel an existing order?
Locate the “Orders” widget on the Lime Trader platform. You will see a cancel button next to each open order. Press the cancel button to submit a request to cancel your order.
Can I modify an open order?
Open equity orders may only be changed between 9:30 a.m. and 3:30 p.m. (Eastern Time) during normal market hours. Outside these times, you must cancel your order and enter a new order. From the Lime Trader platform, locate the “Orders” widget. In order to modify the order, click on the “Replace” button, located in the “Replace” column. Please note that all order change requests are subject to prior fills, including fills not yet displaying on the system. New quantity represents the total number of shares including shares already filled by the order being changed.
How long do GTC orders stay open?
GTC (good-till-canceled) orders remain active for 90 days or until canceled or executed. GTC orders cannot be canceled after hours; GTC orders may only be canceled during market hours.
Is there an additional charge to cancel an order?
No, there is no charge to cancel an order. Please note, however, if the order has already been filled, even partially, then the order will be charged a commission for the portion that was filled.
Is there an additional charge to cancel and replace an order/replace an existing order with a new order?
There is no charge to cancel and replace an order. Please note, however, if the old order has already been filled, even partially, then that filled order will be charged a commission. Please also note that if the new order replacing the canceled order is filled, then the new replacement order will also be charged a new commission once it begins to be filled.
What kind of products does Lime Financial offer?
At Lime Trading, you may trade in Stocks, ETFs, Options, and OTC (over-the-counter) stocks.
Do you accept orders in ETFs?
Yes. Clients can place trades in ETFs trading on US exchanges.
Do you offer margin for ETFs?
Margin requirements for non-leveraged ETFs are the same as those for regular stocks. Leveraged ETFs are held at a 100% requirement.
Can I trade foreign stocks?
Lime Trading does not offer access to foreign markets or foreign settling securities listed on the OTC markets.
Can I trade preferred stock and class shares? How do I enter orders for preferred stocks? Class shares?
You can trade both preferred stock and class shares. There is not a standardized format for preferred or class shares. As a result, you will see these shares being formatted in two possible ways. For preferred shares, you will generally see them formatted as AIGpA or BACpL with the lower case “p” denoting “Preferred.” Class shares are generally formatted with a period followed by the class. For example, Berkshire Hathaway Class B shares would be formatted as BRK.B
What is the charge to trade options?
The online cost to trade options is $0.50 per contract.
Do I need to update my account in order to trade options?
Yes, you will need to update your account with an options agreement. Please apply or upgrade options via your account portal at myaccount.lime.co under “account features”.
How do I exercise my options?
To exercise an option, please submit a request from your email address on file to [email protected]. The email must include your account number, name, number of contracts to be exercised, and the option symbol to be exercised. Funds to cover the cost of exercise must be in the account prior to submitting the request, or the request will be rejected due to insufficient funds.
When can I exercise my options?
Requests to exercise options can be submitted at any point before 3:00 PM EST on the last trading day prior to the date of expiration. Please note that for a request to be processed the same day, it must be received via email prior to 3:00 PM EST. Please submit the request to [email protected].
Where can I see that my options are exercised?
You can view your exercised options on your monthly statement and on your Lime trading account. To view your statements online, click on the “Reports” button located inside of the Cabinet. To view the exercise transaction, select a two-day time range after the day that you submitted the assigned request.
How much does it cost when I exercise my options?
There is a $20 fee per exercise or assignment. This fee is charged on a per option symbol basis.
When are my options assigned?
Given the option contract, options held short can be assigned at any time. Options are generally automatically exercised if in the money at expiration, but may not always be exercised. Long option holders can request to not exercise contracts.
How much does it cost when my options are assigned?
There is a $20 fee per exercise or assignment. This fee is charged on a per option symbol basis.
Where can I see that my options are assigned?
You can view whether your options are assigned on your monthly statement and on your Lime online trading account. To view your statements online, click on the “Reports” button located inside of the client portal/ MY ACCOUNT. To view the assigned transaction, select a two-day time range after the day that you submitted the assigned request.
Which orders can I place on stocks under $1?
You may place a buy or sell order for limit orders. You may only place a sell order for market orders. Market orders are not supported for opening transactions of OTC securities.
Which option orders can I make? What is the maximum risk level allowed?
Lime Financial offers clients with cash and IRA accounts the ability to purchase calls and puts and write covered calls (if approved). Qualified margin accounts have the ability to write uncovered calls and puts (if approved). Qualified margin accounts must have a minimum of $25,000 in equity to write uncovered puts and a minimum of $100,000 in equity to write uncovered calls.
Are options margin eligible at Lime Financial?
No, options cannot be borrowed against at Lime Financial.
Do you allow cash-covered puts?
At this time, cash-covered puts are not available.
Does Lime Trading offer streaming option quotes?
Yes. Streaming option quotes are available on the Lime Trading platforms.
Does Lime provide option charting or historical option pricing information?
Yes, these are available on the Lime Trader platform.
Am I able to trade options in an IRA?
IRA accounts are eligible to be authorized for Options Level 1 & 2, allowing you to purchase calls and puts and write covered call options. Uncovered option trading is not permitted for IRA accounts.
Commissions & Fees
Is there an additional charge to trade during extended hours trading sessions or to trade on ECNs?
A commission surcharge of $0.003 per share is applied to orders executed on the ECN (i.e. ARCA and NSDQ). You may route orders to these destinations during market hours and extended hours trading sessions. During extended hours, pre-market orders may be placed between 7:05 – 9:30 a.m. EST and after-hours order may be entered between 4:00 – 8:00 p.m. EST.
What is your commission for partial fills?
Partial fills of Good-Till-Cancel (GTC) orders will be charged full commission for each day an execution occurs. Same-day partial fills will only be charged a single commission.
What is the commission to trade an ETF online?
There are zero commissions to trade ETFs online is commission-free on Lime Trader.
What is the commission to place an ETF order over the phone?
The commission for a broker-assisted trade placed over the phone is $20.00 per ETF.
What is the commission for low-priced stocks?
For stocks priced less than $1.00, add $0.003 per share for the entire order. The maximum commission per order does not exceed $5.50, with a minimum commission of $2.50.
What is the commission to place an equity/option trade over the phone?
The commission for broker-assisted trades placed over the phone is $20.00 per trade plus 50 cents per contract for option trades.
What is the commission for pink sheet or Over-the-Counter (OTC) securities?
For all OTCBB and pink sheet securities, add $0.003 per share for the entire order. The maximum commission per order will not exceed $5.50, with a minimum commission of $2.50. Please note that additional charges such as settlement and/or transfer fees may apply to foreign and some illiquid OTC-BB or pink sheet securities. These fees are charged upon settlement of the trade. Opening transactions for stocks priced at or around $0.05 per share will not be allowed, only closing transactions will be permitted.
What is the foreign settlement fee?
The foreign settlement fee, usually $75, is charged to trade securities that do not settle domestically (through DTCC). The foreign settlement fee does not apply to American Depository Receipts (ADRs). Currently, there is no list available for the securities that do not settle domestically but generally the symbols are 5 letters and end in F. However, not all 5-letter symbols ending in an F are charged the foreign settlement fee.
What is the safe-keeping charge?
A safe-keeping fee is only charged if the security you own is not eligible to be held electronically through the Depository Trust and Clearing Corporation Company (DTCC) and the physical certificate must be held by our clearing firm, in the vault. This is generally seen with low-priced penny stocks and rarely seen with the securities traded on NYSE, AMEX, or NASDAQ exchanges. The safe-keeping fee is $75.00 charged annually.
What is a sell-out/buy-in fee?
A sell-out/buy-In fee is charged if you fail to meet a margin call that is past due in your account and Lime Trading is forced to liquidate securities in your account to meet this past-due call. The fee is $25.
What is the corporate action fee and what is considered a corporate action?
There is a $30 mandatory corporate action fee. A mandatory corporate action is one where the company’s board of directors takes a decision affecting the shareholders without requiring shareholder approval. Mandatory corporate actions include stock splits and mergers and acquisitions. Voluntary corporate actions have a $50 fee and these include tender offers, optional dividends and rights issues. Shareholders usually elect to participate in voluntary corporate actions.
How do I add/remove margins?
You may add/remove margins through your account portal at myaccount.lime.co under “account features”, margin type. Pending approval, the agreement will be processed if your margin equity is above $2,500 and once your trades have settled.
How do I short a stock?
To short a security, you must have a margin account. Short sale orders may be entered through the platform, by clicking the “Sell Short” button on the order ticket. If the order is rejected, it is not on the easy-to-borrow list and must be requested via phone or chat. Please call 855-274-4934 and Lime will attempt to locate a hard to borrow security for you to short. Please note that short positions may be subject to hard-to-borrow or stock loan fees.
How does Score Priority calculate the margin interest rate?
The margin interest rate is charged monthly but calculated on a daily basis for a 360-day year; the daily cost is based on your debit at the end of each day. You can calculate the daily cost by multiplying the amount you have borrowed by the Current Interest Rate divided by 360. Daily Cost = (Amount Borrowed) x (Current Interest Rate/360). Please click on the margin interest rate to find your current interest rate.
Is it possible to place a trade in cash within a margin account?
While all trades in a margin account are placed and remain in a margin account type, you may limit yourself to using only the cash balance in your account. A margin account type does not mandate that you borrow with each purchase transaction that you make. You are only borrowing when your purchases exceed your total cash.
What are the margin requirements for ETFs?
Non-leveraged ETFs have the same margin requirement as normal stocks (National Market System or NMS securities). Leveraged ETFs are held at 100% initial and maintenance requirement.
What can I do if I cannot short a security?
What happens if I get a margin call?
Generally, you are issued a margin call via email. If you do not satisfy the margin call by the due date listed on the email, then securities are liquidated in your account to cover the margin call. When you do not cover the margin call yourself via liquidation, you are charged a $25 fee. For more information, please consult the Margin Calls and Flags Guidelines.
What is the margin requirement for short stocks?
Please view the margin requirements for short stocks on the Margin Requirements page.
What risks are involved in trading on margin?
Please note that trading on margin involves increased risk and could result in losses that exceed initial and/or subsequent investments. Since you are allowed to borrow funds above the amount deposited, trading on margin can result in losses greater than the initial principal invested. The decision to trade on margin must be considered carefully by each investor. Please examine the following margin agreement. Please also read additional information, including FINRA’s Margin Information and FINRA’s Investor Alert regarding margin.
Where can I see the interest being charged to my account?
Margin interest is charged to your account every month based off of a yearly rate. The rates can be found here. You may view the interest charged to your account in the client Cabinet either under Transactions History or you can view your statements under Reports.
Why are all my trades in margin if I'm not borrowing?
In margin accounts, all stock and option trades are done in type margin. A margin account type does not necessarily mean that you are borrowing. It is possible to have a positive cash balance in your account but still trade as type margin. You are only borrowing when your purchases exceed the total cash in your account.
What is a day trade?
A day trade is when a trader opens (buy/short sell) and closes (sell/buy-to-cover) a position in the same day. Please note that extended hours trading activity does count towards day trading. It is considered a day trade so long as a sell/buy to cover is executed following a buy/sell short of the same security on the same day. It is not considered a day trade if you sell/buy to cover and then buy/sell short so long as you do not close your purchase/short thereafter.
What further information is available about day trading?
What risks are involved in day trading?
Day trading involves significant risk. There is a high degree of risk and losses could exceed any initial and/or subsequent investment. Please be sure to review our Day-trading Agreement and Risk Disclosure and our Margin Agreement. Additionally, you will find more information if you refer to FINRA’s Investor Guidance on day trading rules.
Is there a limit as to how many trades/day trades I can make?
Please be advised that a margin account holder will be flagged as a pattern day trader if he/she executes more than three day trades within five consecutive trading days. If you are flagged as a pattern day trader and your account is below $25,000, your account will be restricted from entering new positions. If you cannot meet the minimum requirements, then you will no longer be able to day trade. If you can meet the minimum requirements to qualify as a day trading account and decide to set your account as such, there is no limit as to the number of day trades that can be placed.
How do I set up my account for day-trading?
You may apply for a day trading account through your account portal at myaccount.lime.co under “account features”, margin type. You must deposit and maintain at least $25,000 of equity in your account.
What happens if I day trade and I am not set up for day trading?
You are allowed to enter a limited number of day trades in a margin account without being flagged as a pattern day trader. In a margin account, if you exceed 3 day trades in a 5 day rolling period, our clearing firm will flag your account as a pattern day trading account. Once flagged, an email notification will be issued the following morning. Accounts with balances below $25,000 will be restricted to liquidations only till the balance is brought above $25,000.
What are the requirements for pattern day trading?
What happens if I am flagged as a pattern day trader?
Once you are flagged as a pattern day trader, this designation cannot be reversed. From this point forward, you cannot enter any day trades while your account is below the minimum requirements for a day trader. If you would like to continue day trading, you must submit the Day Trading Supplement. Lime Trading offers a one-time forgiveness, where you may submit a Change of Strategy in order to revert to a regular margin account. Your Lime Trader platform also provides day trading count information.
What happens if I fall below the $25,000 minimum within a day trading account?
If you fall below the $25,000 minimum in your day trading account, you will be restricted from trading until your account meets the $25,000 minimum or until you submit a Change of Strategy (can only be submitted once).
How do I make a contribution to my IRA?
You may login to myaccount.scorepriority.com to locate IRA cash management options.
What does it cost to open and maintain an IRA account?
There is a $50 annual IRA fee. This fee is waived for accounts which place more than 40 trades per year and maintain at least $50,000 in assets.
Why do I receive some mailings by mail if I have consented to electronic delivery?
Regulations require that certain information be sent in physical form. This includes shareholder information, notification of changes in interest rates, and tax-related reminders. These mailings are sent at no cost to clients.
May I ask Lime Trading client representatives for tax advice?
Our client representatives are unable to provide any tax advice and if your question is viewed as such, you will be referred to your accountant or tax advisor.
How do I get my 1099 tax form through Lime Trading?
1099 tax forms are sent to your mailing address of record unless you opt for electronic delivery of tax documents. In this case, a PDF file containing your 1099 will be posted to the client online portal. To access your 1099, go to https://myaccount.lime.co/dashboard/reports
Whom should I contact with questions about my tax form?
Please contact a Lime Trading client representative via [email protected] with any questions about your tax form. However, remember that our client representatives are unable to provide any tax advice and if your question is viewed as such, you will be referred to your accountant or tax advisor.
Can I update my tax form online?
Yes, you may update your tax from through your account portal under documents & disclosures, “Tax forms” section.
What documents are required to update my W-8BEN?
Apart from the W-8BEN tax form itself, a valid passport, driver’s license, or other government photo ID is required to process the W-8BEN. If your address has changed since you last updated your W-8BEN, you will be asked to submit an address change form and a recent utility bill to verify your new address. Joint accounts require separate W-8BENs be submitted by both account holders.
How do I change my address or contact information?
In order to change your address or contact information, you must be logged in to https://myaccount.lime.co/dashboard/settings then “change” next to Personal Information. You can update your Account Credentials, Investment and Employment Profile in addition to personal information.
I forgot my password. How do I change my password?
When logging into your account, select “Forgot Password.” A new temporary password will be generated and sent to your email address. Alternatively, you may email [email protected] and request password reset instructions be sent to your email.
How do I close my account?
Your account must be free of any securities or cash before we can close your account. If the account has no cash or positions left, you can selected “Close Account” under the “My Profile” tab within your client cabinet. Alternatively, you may request to close account by contacting [email protected].
How do I remove securities that are not currently trading?
Please contact Lime Trading through live chat, phone, or email for more details on how to remove securities that have no current market.
System Requirements/ Troubleshooting
How does Lime Trading protect my account security?
Your online account information is 100% encrypted by proprietary technology. Our systems use a 64-bit block cipher and support a variable key length of 32 bits to 448 bits. What this means is that a block of your personal data is taken and is scrambled with a key created from your password to make it unreadable. The data that is sent to you as our client is NEVER cached in an unencrypted format on the computer that you are using. All of the client-side decryption is handled in memory. In layman’s terms, your account information cannot be retrieved from the web browser’s cache files.
If I have canceled an order after market hours, when can I trade again?
Our connections to the market centers for orders placed or open during normal market hours close at 4:00 pm EST. When canceling an order outside the normal market session, you will be able to replace your canceled order at 9:20 am EST the next business morning.
Do you charge for paper statements and confirmations?
Yes. Our goal is to go paperless and allow customers to have an electronic copy available at any time. To sign up for e-confirmations and e-statements, simply log into your Cabinet. Click on “My Accounts,” followed by the “Statements” button. Next, click on “Statements and Confirmations” and select the documents you wish to receive electronically. Should you wish to keep having your confirmations and statements physically mailed to you, please note there will be a postage and handling fee of $5.00 per statement and $3.00 per confirmation mailed.
When can I reach a client representative?
Our normal office hours are Monday – Friday, 9:00 a.m. – 5:00 p.m, excluding market holidays.