Buy, Sell, Buy, Sell; All Day Long.

Hello, Trading on Unsettled Funds.

Since Stake launched, a popular feature request has been trading on unsettled funds. That is, re-investing funds from a sale before it settles.

The ability to invest immediately into a new opportunity in the US market, combined with commission-free trading, gives ‘Hello, Wall St.’ a whole new meaning.

Your feedback shapes our product. so we’re excited to announce this feature is now available through Stake Black, the top tier of our newly introduced Brokerage Packs. Learn more about the brokerage packs here.

To access this feature on mobile, update your Stake App today.

What do I need to know?

We haven’t been holding this feature back for fun. Nope. It’s because there are rules around trading on unsettled funds which are important. If they’re not followed, your account can be restricted for a period of time.

Stake is about giving people unrivalled access to the US market, not have them shut out of it. So we take our responsibility to set people up to invest in the market without that risk seriously.

The rules focus on two areas: your account type and your account value.

Account Type and Value

If you have a Cash Account (what you’ve had to this point), you cannot trade freely on unsettled funds.

If you have a Margin Account or Limited Purpose Margin Account with account value under US$25k, you can trade on unsettled funds but with some restrictions. You can only buy and sell the same stock on the same day (known as pattern day trading) up to 4 times in a rolling 5-day period.

There is no restriction on accounts with values above US$25K.

How will this work on Stake?

To make this hotly-requested feature available, we’ve implemented the following.

First, all Stake accounts are now Limited Purpose Margin Accounts. There is no fundamental change to your account other than giving you the potential to trade on unsettled funds. It’s important to know that no leverage is being extended. If trading on unsettled funds is not something you wish to do, then nothing for you changes.

Secondly, until July 1, 2020 only accounts with values over US$30k get Stake Black. After July 1, 2020 Stake Black will be accessible to everyone. To note, this account value must be met by a single Stake account.

Why only to those with this portfolio size?

This is so those trading on unsettled funds can do so without restriction.

We haven’t yet built the technical infrastructure like trade counters, warnings and prevention triggers to ensure customers don’t fall foul of the rules.  We really wanted to introduce this feature but don’t want anyone running into trouble, so we had to include this US$30k rule.

If you want to access Stake Black, you can fund your account above US$30k.

These safety measures will be in place from July 1, 2020. Everyone will then be able to trade on unsettled funds through the Stake Black. Learn more about brokerage packs here.

Why a portfolio size of US$30k and not US$25k?

While the regulations say US$25k is the minimum, we want to be extra secure on behalf of our customers. So we’re building in a US$5k buffer incase your portfolio takes a small swing or you withdraw some funds.

What happens if my portfolio value falls below US$25k?

Until July 1, 2020, if your account value drops below US$25k, we’ll move you to Stake Unlimited and trading on unsettled funds will unfortunately no longer be available to you. We must take this precaution due to the trading rules. Don’t worry though, we’ll notify you via email and you can top your account back up over US$30k recommence Stake Black.

If you have any further questions about this, get in touch with us at support@hellostake.com.

Cheers,

The Stake Team

Stakeshop Pty Ltd, trading as Stake, ACN 610105505, is an authorised representative (Authorised Representative No. 1241398) of Sanlam Private Wealth Pty Ltd (Australian Financial Services Licence No. 337927).

Stakeshop Pty Ltd is registered as an overseas company in New Zealand (NZBN: 9429047452152).

Stake is the trading name of Hellostake Limited (no. 11676409), authorised and regulated by the UK Financial Conduct Authority (FRN: 830771).

The information on our website or our mobile application is not intended to be an inducement, offer or solicitation to anyone outside of Australia, the United Kingdom or in any jurisdiction in which Stake is not regulated or able to market its services. 

At Stake, we’re focused on giving you a better investing experience but we don’t take into account your personal objectives, circumstances or financial needs.

Any advice is of a general nature only. As investments carry risk, before making any investment decision, please consider if it’s right for you and seek appropriate taxation and legal advice.

Please view our Financial Services Guide, Terms & Conditions, Privacy Policy and Disclaimers before deciding to use or invest on Stake. By using the Stake website or service in anyway, you agree to our Privacy Policy and Terms & Conditions

All financial products involve risk and you should ensure you understand the risks involved as certain financial products may not be suitable to everyone. Past performance of any product described on this website is not a reliable indication of future performance.

For New Zealand resident customers, the following also applies: The content provided on our website or mobile application is for general information purposes only and is not intended to constitute financial advice for the purposes of the Financial Advisers Act 2008 or the Financial Markets Conduct Act 2013, or an invitation or an offer to buy or sell any financial product or security.

To the extent you require further information about the relevant New Zealand legislation that may apply, or require specific advice, please contact your legal and/or financial adviser (as appropriate).

Stake is a registered trademark under classes 9 and 36 (Australia). 

Copyright © 2019 Stake. All rights reserved.