Frequently Asked Questions

Why is Newedge exiting the online retail business?

With the creation of Newedge, the Firm has decided to leverage its global reach by concentrating on an institutional and professional business clientele. This decision was not made lightly and as such we will do all we can to make this transition easy for you. 

What will happen with my account between now and the time of transfer?

You should see no changes to your account and its operation. You will be able to trade, deposit or withdraw funds, and cash balances will still be swept nightly into a money market.

I access my account utilizing the WizeTrade and PreferredTrade systems, how will that change in the future?

If you access your account through WizeTrade today, you will continue to do so after the transfer to MB Trading. If you access your account through the PreferredTrade software, you will continue to do so until the date of transfer, at that point you will be accessing your account through MB Trading.

Will I receive two sets of tax documents at the end of the year?

Yes, Federal law and IRS regulations require that each broker-dealer that you have or had an account with file the information and provide you with documents.

What will happen if I need a copy of a confirmation, statement or tax document from Newedge?

Newedge will maintain a secure website where you will be able to download historical documents until June 30, 2009. After that you will have to send a written request to Newedge for any information.

Will I need to fill out new paperwork for MBT?

MB Trading will require their own paperwork, but we will make this as easy for you as possible. You will have 30 days to log on to a special link to fill out the easy application.  Their new accounts department will be available to assist with any questions or issues you will have along the way.

Does MBT offer competitive Money Market funds and if so which ones?

MB Trading offers 17 different Money Market accounts from Scudder Funds.  The current highest yield (as of April 15, 2008) is 3.35%

Will I be able to trade options?

Yes, if you have filled out the requisite options paperwork with MB Trading, and have been approved by MBT to trade options, you will be able to trade options online or via the trade desk’s 800 number for no additional charge.

How will I access funds in my account after the transfer?

You will have the option to access funds via wire, ACH transfer (setup required) or via check.

What are MBT’s commission rates?

Detailed information about MBT's commission rates can be found on the MBT website www.MBTrading.com/ratesStocks.asp.

What fees does MBT charge?

MBT offers some of the lowest fees in the industry.  For detailed information on individual fees, please feel free to visit the MBT website at www.MBTrading.com

What is Newedge and or MBT going to charge me for this “transfer”?

Neither Newedge nor MBT will charge you any fees directly related to the transfer of your account.

Who can I talk to at Newedge about this?

Newedge has established a special phone number 888-781-0283 Option #1 and email address preferredtrade@Newedgegroup.com for you to use for any questions or concerns you may have regarding the transfer of your account.

Who can I talk to at MBT about this?

MBT’s customer service department can assist with any questions regarding the transfer of your account.  They can be reached at 866-628-3001.  If a manager is required for an important issue or question, Keith O’Toole can assist. 

What date will the transfer become effective?

We are anticipating the transfer to take place in approximately 90 days from the date of this letter. When we have set a specific date we will notify you well in advance.

I don’t wish to transfer my account to MBT, what are my options?

You may transfer your account to any other broker-dealer who is willing to accept your account. However you will incur the fees and costs associated with this transfer. If this is the decision you make, click HERE for information.

What happens if I choose not to transfer my account?

As we stated in our letter, Newedge is exiting certain segments of the retail business. Therefore after a certain date, your account, if not transferred to another broker-dealer will have a freeze put on it. You will only be able to close out positions at that point. You will not be able to automatically withdraw funds, or open any new positions.

Will I still have a margin account at MBT?

If you are approved to have one by MBT, then you will.

What is the margin rate at MBT?

MB Trading currently charges 7.45% APR on margin.  Accounts are not charged for the use of margin when borrowing money throughout the day. The margin interest rate is only charged when you borrow money to hold securities overnight. Therefore, if the market value of securities in your account exceeds your account value overnight, you are using margin.

Will I still be allowed to day trade?

Yes.  MB Trading is a direct access brokerage firm that develops and markets sophisticated yet simple direct access trading technology to online investors.

Can I transfer or close my account now?

Yes. If you wish to close your account you should liquidate any positions you may have and when they settle send an email to preferredtrade@newedgegroup.com requesting a disbursement of the funds and that you wish to close your account. If you wish to transfer your account to a broker-dealer other than MBT, go to the PreferredTrade website, click on the tab for “Account Transfer” and then the tab for “Non-MBT Transfer” where we have posted the instructions for your transfer.