Frequently Asked Questions: Accounts
What type of account can I open with Vision?
Vision offers a variety of accounts to meet your investment needs:
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Non-Retirement:
- Individual
- Joint (JTWROS & Tenants in Common)
- Custodial for a Minor (UTMA & UGMA)
- Transfer on Death
- Corporate & LLC
- Partnership & LLP
- Sole Proprietorship
- Trust & Estate
- Unincorporated Association
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Retirement:
- Traditional IRA
- Roth IRA
- Rollover IRA
- SEP IRA
- Non-Prototype IRA
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What is the difference between an UTMA and an UGMA?
The Uniform Gifts to Minors Act ("UGMA") established rules on the purchase of securities for a minor. With a UGMA, an adult donor gives an irrevocable gift of cash or securities to a minor, which must be registered in the name of the adult as custodian for the minor. Access to the gift is given to the minor when he or she reaches the age of majority in the state where the UGMA was established (which can vary by state). The Uniform Transfer to Minors Act ("UTMA") is an extension to UGMA that allows for the postponement of the transfer of assets to the former minor's control beyond the age of majority. UTMA allows minors to own other types of property, such as real estate, fine art, patents and royalties, and for the transfers to occur through inheritance. UTMA is also slightly more flexible than UGMA.
What is a "non-prototype" IRA?
An Individual Retirement Account which is "non-prototype" means the custodian for the account is an entity other than Sterling Trust Company (which is the custodian Vision utilizes). Vision would still be the brokerage firm that offers the account through which to trade, but the custodian would be a third party firm of your choosing. However, Vision recommends our clients to use Sterling Trust Company due to their high level of service, the working relationship between our two firms and the very reasonable annual fee associated with these accounts.
How much money do I need to open an account with Vision?
Vision requires a minimum initial deposit of $2,000 for a cash account and $5,000 for a margin account.
What is a margin account?
A margin account allows you to increase your purchasing power by borrowing against the securities held in your account. To apply for a margin account, please complete the Margin Supplement which is available here. Margin accounts through Vision require minimum equity of $5,000 and due to the increased leverage which is provided they are not suitable for all clients. Trading on margin involves risk and clients that wish to open a margin account must carefully read the Margin Supplement.
Can I use margin capacity in one account to collateralize a margin loan in another account?
Yes, the securities in one account can be used to collateralize a margin loan in another account provided that Vision has signed authorization from the owner of the account providing the collateral. Please note that securities in either account may be liquidated at any time to cover any resulting margin call (i.e. the risks associated with borrowing on margin apply to both accounts – not just the account with a loan outstanding). While two or more accounts can share margin excess, they can not share Special Memorandum Account (referred to as "SMA").
Can I utilize a margin loan from Vision for purposes other than buying securities on margin?
Yes, margin loans through Vision can be used for other purposes. While the purchasing of securities is the most common use of margin funds you should know that the proceeds of a margin loan can be used for multiple purposes including meeting other financial obligations, making purchases (e.g. you can purchase a car utilizing proceeds from a margin loan) or just to raise cash should you need it. However, while margin lending provides flexibility you must remember that there are risks associated with utilizing margin and it is not suitable for all investors. Please read Vision's Margin Supplement for more information and a thorough discussion pertaining the associated risks.
Can I start investing through my new account before funding it?
No. While industry regulations state that funds have to be available by settlement date it is Vision's policy to require funds to be on deposit in a new account before initial trading is permitted. If you plan to fund your account with a wire deposit that same day, then please call our Customer Service team at 1.877.836.3949 to seek an exception.
How do I transfer my account to Vision?
If you are transferring an existing account from another firm you will need to complete and sign the Securities Account Transfer Form. This form is included in each of the account applications posted on our Web site and permits you to transfer an entire account or just specific assets from an existing account at another brokerage firm.
I have more than one account at Vision. Can I view these in a consolidated manner?
Yes, you have the ability to "household" all your accounts held with Vision by submitting the "Householding Request Form" which is available here. This option allows clients to review their financial records more concisely while reducing the number of mailings to their address. By linking accounts under a household relationship, clients who receive paper month-end account statements will receive only one envelope each month that includes a cover sheet with a listing of each account (and the total for the household) followed by the respective account statements. Each account within the household will also be linked together for easy online viewing via Vision's password protected Web site.
What are the different investment objectives I can have on my brokerage account?
There are four investment objectives which you can have on your brokerage account at Vision: Preservation of Capital, Income, Capital Appreciation and Speculation. On the account application you should rank them in order of importance from 1 to 4 (with 1 being the most important objective). To see a description of each of these objectives, please click here.
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