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How can I monitor global trading activity and market events that might impact my investments in the U.S.?
Is there a virtual trading tool on OptionsFirst?
Tips of the Trade
Broad-based index options (such as the S&P 500 index, SPX) are considered "Section 1256 contracts" and are subject to special tax rules. The gains on such contracts are treated as a 60% long-term capital gain and 40% short-term capital gain (60/40 treatment) regardless of how long you have held the position. This is different than equity options, which are taxed based on your holding period, almost always resulting in a short-term gain treatment. Learn more about the tax rules governing 1256 contracts as well as other option strategies from the Options Industry Council.
Scottrade does not provide tax advice. This is provided for informational purposes only. Please consult your tax, or legal, advisor for questions concerning your personal tax or financial situation.
Account Succession Planning
Just as you would draw up a will to pass down your grandmother's ring or your '65 Mustang, you can designate a beneficiary for your Scottrade account to ensure your assets are handled as you wish when you pass away.
If you hold an individual, tenants in common or joint tenants with rights of survivorship account, you can complete a Beneficiary Plan Agreement to designate your account beneficiary(ies). Learn about these account types. Or, if you hold an individual retirement account (IRA), you can update your IRA Beneficiary Form. Learn more about IRA succession planning.
To protect your assets by designating a beneficiary:
- Complete the Beneficiary Plan Agreement, found in the Forms Center. It's generally a good idea to designate a contingent beneficiary in addition to your primary beneficiary.
- Mail it to your local branch office.
- Talk to your beneficiaries. It's important that these people know they are your beneficiaries and know what to do when you pass away.
When a Scottrade customer passes away, it is the responsibility of the customer's survivors to contact Scottrade and provide us with a copy of the death certificate. When the certificate is received, Scottrade will cancel all open orders in the account. If the customer's beneficiaries have Scottrade accounts, they can move the assets directly into their accounts using the Transfer on Death Distribution Form. If they aren't current Scottrade customers, they will need to open new Scottrade accounts before the assets can be transferred.
If you have any questions about succession planning for your account, please contact your local branch office.
Scottrade does not provide legal or tax advice. Please consult your legal or tax professional for questions concerning your personal estate planning situation.
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With more than 500 branch offices nationwide, Scottrade offers live events in neighborhoods all over the country. Visit your local Scottrade office for a cozy small-group Branch Seminar, or get together with Scottrade customers from your area at our popular User Summits.
Browse All Live Events >Stream live, interactive presentations right to your computer! Check back every week for new Live Webinars on a variety of topics including:
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Interact with Scottrade customers and product specialists. Share your thoughts and learn from others. Grow as an investor. Join our community today!
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Online market and limit stock trades are just $7 for stocks priced $1 and above.
Any specific securities, or types of securities, used as examples are for demonstration purposes only. No information on this Web site should be considered a recommendation or None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security.
Investors should consider the investment objectives, risks, and charges and expenses of a mutual fund carefully before investing. A mutual fund's prospectus contains this and other information about the mutual fund. Prospectuses are available through our trading site or through a Scottrade branch office. The prospectus should be read carefully before investing. No transaction fee (NTF) funds are subject to the terms and conditions of the NTF funds program. Scottrade is compensated by the funds participating in the NTF program through recordkeeping, shareholder, or SEC 12b-1 fees.
Investors should consider the investment objectives, charges, expense, and unique risk profile of an Exchange Traded Fund (ETF) carefully before investing. Leveraged and Inverse ETFs may not be suitable for long-term investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies. A prospectus contains this and other information about the ETF and should be obtained from the issuer. The prospectus should be read carefully before investing.
Margin trading involves interest charges and risks, including the potential to lose more than deposited, or the need to deposit additional collateral in a falling market. Margin Disclosure Statement (PDF) is available for download, or it is available at one of our branch offices. It contains information on our lending policies, interest charges, and the risks associated with margin accounts.
Options involve risk and are not suitable for all investors. Detailed information on our policies and the risks associated with options can be found in the Scottrade Options Application and Agreement, Brokerage Account Agreement, and by downloading the Characteristics and Risks of Standardized Options and Supplements (PDF) from The Options Clearing Corporation, or by requesting a copy from your local branch office. Supporting documentation for any claims will be supplied upon request.
Market volatility, volume, and system availability may impact account access and trade execution.
Testimonials may not be representative of the experience of other clients and are no guarantee of future performance or success.