Brokerage, advisory, retirement
Investing that is separate from your deposits.
Brokerage, managed advisory, retirement, and education savings are investment accounts. They can lose money. They are not deposits, they are not FDIC insured, and past performance is not a guarantee. Online equity commissions are published at $0. Advisory is 0.75% a year of assets, with a $5,000 minimum. A pending book does not trade. The agreement on the form is the one that applies.
How the books differ
Deposits and investments are different products with different risks. Nothing below is a forecast. Review is on by default for brokerage and advisory, so a submitted application is not an account you can trade.
Brokerage
Self-directed holdings in your name.
- ·Open at $0. Initial funding on the form can be as large as $250,000. Larger amounts are taken by a banker.
- ·Online equity commission is published at $0 a trade. Other products, if added later, are priced on that order.
- ·A pending book does not accept a buy or a sell. The account is usable only after it is released.
Advisory
A managed account, billed on assets.
- ·Published advisory fee is 0.75% a year (75 basis points) of assets. Minimum investment is $5,000.
- ·The advisor name on a new account follows Newham Savings Pro unless a banker sets another name.
- ·The fee is not a deposit charge, and the account is not FDIC insured. You can lose money, including the amount you contributed.
Retirement
Traditional, Roth, or SEP, on the same review path.
- ·The published IRA contribution limit is $7,000 under age 50, and $8,000 at 50 and older, including the catch-up. This environment does not apply IRS income phase-outs. Confirm the limit that applies to you before you contribute.
- ·A contribution is not a trade, and a pending retirement account cannot be funded as if it were already open.
Education savings
A beneficiary, a horizon, and a cap.
- ·The published Coverdell cap is $2,000 a year per beneficiary. A 529 is not capped the same way and is not opened by this figure.
- ·The beneficiary is named on the application. The account follows the same hold as the other investment books.
What “not a deposit” means on this site.
Checking and savings balances are deposit liabilities. A brokerage, advisory, retirement, or education account is not. It is not FDIC insured, it is not guaranteed by the bank, and it can lose value. The deposit agreement does not govern it. The investing addendum on the application does. Money moved from checking into an investment account leaves the deposit book when that transfer posts.
A hold is not a market delay.
If review is on, the book stays pending and no order is sent. Approval is what makes the account usable. Decline finishes the record. You should read the agreement before you apply, including the advisory fee and the fact that commissions published at $0 do not remove market risk.