MY ACCOUNT
Choose the method that works best for you:
By ACH
We will set up an automatic ACH with your bank account
By Check
If you’re applying by mail, include a personal, cashier’s, or bank check made payable to Hilltop Securities (our Clearing Firm) with your account application and send it to the appropriate address.
By Wire Transfer
Call us at 718 436-2111 Ex 2013 for wire instructions.
Yes, ViaACH, check, wire.
Yes, please speak to your account executive for details.
1 . First, open an account with Kensington Capital.
2. Once your account is opened, you will be able to transfer an account from another brokerage through our ACAT system.
Yes. You may trade most marginable securities immediately after funds are deposited into your account, however, funds cannot be withdrawn or used to purchase non-marginable securities, initial public offering (IPO) stocks or options until 3 business days after check deposit settlement and three business days for electronic funding deposit settlement. All electronic deposits are subject to review and may be restricted for 5 business days. Read Funding Restrictions for more information.
ACCOUNT INFORMATION
Your account balance includes all cash, money market funds, stocks, exchange traded funds (ETFs), mutual funds and options in your account. Margin loans, if any, do not count toward your balance. Balances from separate accounts are not combined in determining the qualification.
If you would like a third party (such as your accountant or tax advisor) to receive a duplicate copy of your statements and confirmations, simply send us the interested party’s name and complete address. The person you have designated will receive a duplicate copy of confirmations and statements by mail. Please see our fee schedule.
TRADING
With Kensington Capital, you can invest in any stock or ETFs (Exchange Trade Funds). Any stock or ETF that trades on the NASDAQ, NYSE (New York Stock Exchange), or AMEX (American Stock Exchange).
Yes, you may trade futures at Kensington Capital. Please contact an account Representative for more information on futures access, platforms, service, pricing, and deposits.
Yes. However If you are classified as a pattern day trader (PDT), you are required to maintain a minimum account balance of $25,000 at all times. According to securities regulation, you are considered a pattern day trader if you make more than 4 day trades (see definition below) within a period of 5 business days.
A day trade is defined as opening and closing (buying and then selling, or short selling and then buying to cover) the same security on the same day.
Yes, with our Account Representative will be happy to assist you
Yes. Over-the-counter bulletin board (OTCBB), pink sheets and penny stocks (hereafter OTCBB) can be bought and sold,
Please Note: OTCBB securities usually represent shares of new or small companies which are traded by dealers via manual procedures. Investing in OTCBB securities can be very risky, and investors may lose all or part of their investment in a relatively short period of time.
Yes. At Kensington Capital you’ll have access to many mutual funds.
MARGIN
Buying stocks on margin involves borrowing funds through Kensington Capital’s clearing firm, Hilltop Securities and using these funds to buy margin-eligible securities.
The account must have a minimum account balance of $2,000 to maintain margin privileges.
The Federal Reserve and FINRA both set minimum initial and maintenance margin requirements. Although the NYSE and FINRA require a minimum equity maintenance of 25%, broker dealers are allowed to impose higher equity maintenance requirements. Kensington Capital requires a minimum equity maintenance requirement of 30%.
The following requirements apply only to securities listed on the NYSE, AMEX, and NASDAQ. OTC Bulletin Board and Pink Sheets stocks are NOT margin eligible.
Maintenance requirements may be higher if our clearing firm deems it necessary. Securities valued less than $3 per share are not margin-eligible.
Your account will be subject to a margin call if your equity does not meet margin maintenance requirements, and Kensington Capital Trading Margin Department will generally attempt to notify you as a courtesy.
Margin calls are due upon creation of the call. Kensington Capital, along with our clearing firm Hilltop Securities, establishes a future due date as a courtesy notice. Kensington Capital in observation of regulatory policy, may sell your securities at any time without consulting you in order to meet the call. Typically, if you do not meet a call by the due date, your account will be considered “In Default” and Kensington Capital may liquidate positions in order to cover all outstanding calls prior to their individual due dates. Depending on market fluctuations, positions may be liquidated for a greater amount than the calls. If Kensington Capital liquidates any of your positions, you will be charged the broker-assisted commission rate.
This is common in a cash account when a sell order has been placed but has yet to settle. In a cash account, the proceeds of a sell order do not increase your buying power until the trade settles, which is 2 business days after the trade date for stocks (T+2) and 1 business day for options (T+1).
Cash accounts can receive a type of non-margin call called a “money due” call. This can happen if you make a purchase without sufficient funds in your account, perhaps due to price fluctuations after entering a market order, or due to fees assessed to your account.
No. When you purchase securities with a value less than or equal to that of your cash balance, you are not buying on margin, even in a margin-enabled account.
A Good Faith (GF) Violation is generated in cash accounts when a client purchases a security with unsettled funds and then sells the security prior to settlement of those funds. If three unmet GF Violations in any 12-month rolling period will result in your account being restricted to trading only with settled funds for a period of 90 days. If another GF Violation occurs during the 90-day period, the account may be restricted to all but closing transactions.
OPTIONS
A call option is an option contract that gives the buyer the right (but not the obligation) to buy a stock, bond, commodity, or other instrument at a specified price within a specific time period.
A put option is an option contract that gives the buyer the right (but not the obligation) to sell a stock, bond, commodity, or other instrument at a specified price within a specific time period
If you are long a call option that is in the money at expiration by at least $0.01, you should expect to purchase the underlying shares at the strike price. If you have insufficient funds to cover the purchase, a margin call will be generated on your account and Kensington Capital may force a liquidation of the position at prevailing market prices.
If you are long a put option that is in the money at expiration by at least $0.01, you should expect to have the underlying shares sold short (unless you are long sufficient shares of the underlying stock) in your account at the strike price. You will be required to cover this position before the end of the trading day following expiration. For instance, if shares are sold in your account Friday, you will be required to cover that position the following Monday before 4 PM EST.
If you are short a call (stock option) that is in the money, you may be assigned on any given trading day leading up and to the last trading day prior to expiration day. Assignment to a call writer means you will have to sell the specified amount of underlying shares at the strike price. If this is an uncovered call, you will have to buy the underlying stock in the open market at the current market price so you may sell it to a call buyer at the strike price. If you do not have sufficient buying power to afford such a position, you may receive a margin call which can put you at risk of being sold out of that position. If you are short a put (stock option) that is in the money, you may be assigned on any given trading day leading up and to the last trading day prior to expiration day. Assignment to a put writer means you will have to buy the specified amount of underlying shares at the strike price. If you do not have sufficient buying power to afford such a position, you may receive a margin call which can put you at risk of being sold out of that position.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options.
For more information on option contract terms and more, please check out www.theocc.com
www.cboe.com
www.optionseducation.org
At Kensington Capital, We Negotiate our commissions on a client by client basis.
RETIREMENTS
IRA Retirement Plans
An IRA, or Individual Retirement Account, is a tax-advantaged retirement savings vehicle. Holders of an IRA retirement account may contribute a set amount of money to it each year – the maximum yearly contribution in recent years has been the lesser of 100% of earned income or $6000 for individuals under the age of 50. For individuals over the age of 50, the maximum contribution to an IRA is the lesser of 100% of earned income or $7000. These amounts may change so make sure to reconfirm this information with your tax advisor.
Many types of IRAs exist, and the type that best suits an individual is dependent on that individual’s age and how much money is needed to retire.
Traditional IRA – contributions to a Traditional IRA are often tax-deductible, meaning that the money that is contributed is done so before tax is deducted. Earnings and transactions on assets held within a Traditional IRA are not taxed, and the money that is withdrawn from a Traditional IRA at retirement is taxed as income.
Roth IRA – contributions to a Roth IRA are done so after tax has been deducted, which is the principal difference between a Roth IRA and a Traditional IRA. Earnings and transaction on assets within a Roth
IRA are not taxed. Money that is withdrawn from a Roth IRA at retirement is not taxed (since it was
taxed when it was contributed).
Self-Directed IRA – the owners of these IRAS are permitted to make investments on behalf of the plan. A Self-Directed IRA allows the holder to make investments, using money in the IRA account, in a broad selection of investment vehicles, whereas most other IRA types are restricted to a few mainstream investments.
We offer all types of IRA accounts.
Yes – just use our Rollover IRA Checklist. We recommend that you speak with a qualified tax advisor regarding any tax implications and your new contribution limits.
Margin is not allowed for IRA accounts, but you may request options privileges up to Level 2. Since higher options levels require margin privileges, higher options levels are not possible.
To update the beneficiaries on your IRA, please go to our forms library and fill out and submit the IRA beneficiary form.
Yes, there is a $50 fee to close an IRA.