Introduction
Velocity Clearing, LLC (“the Firm”, “we”, “our” or “us”) is registered with the Securities and Exchange Commission (SEC) as a broker-dealer, is a member of the Financial Industry Regulatory Authority, (http:/finra.org), the Securities Investor Protection Corporation https://www.sipc.org, and various US Securities Exchanges. Velocity Clearing, LLC and its Guardian Trading Division are not Investment Advisors. Brokerage and investment advisory services and fees differ, and it is important for you to understand these differences.
What is the difference between a Broker and an Advisor, and how do fees differ?
A broker generally executes specific transactions on your behalf and is paid per transaction. An Advisor usually chooses investments for you and charges you a fee based on your portfolio’s total value.
What are your qualifications, licenses, experience, and education?
You can find more information about the Firm and our representatives at https://brokercheck.finra.org or you can ask us. Here are some other websites you may find helpful to better understand different types of investing and services: https://www.investor.gov/CRS and https://www.finra.org/investors#/
WHAT INVESTMENT SERVICES AND ADVICE CAN YOU PROVIDE ME?
Through our Guardian Trading division, we offer brokerage services to Retail Self-Directed Day Trading traders and investors, including buying and selling Equities, Exchange Traded Funds (ETFs) and listed options. Day trading is the practice of opening and closing a position (i.e., buying and selling the same stock) on the same trading day. A same-day buy and sell, or a same-day sell short and buy to cover, is considered a day trade. We also offer access to a variety of electronic trading platforms that allow you to monitor your own trading and strategies, and route orders to Designated Market Access participants, who facilitate the execution of the orders. We do not have discretionary authority on your account. You will make all the decisions regarding the purchase or sale of securities in your account. We do not make recommendations regarding securities, investment strategies or account types. We do not provide investment monitoring services. Accounts may be opened as an Individual or Joint or as a corporation or limited liability corporation (LLC). We require a minimum initial funding level of $30,000 to open an account. Pursuant to FINRA Rule 4210, if you meet the definition of a pattern day trader, you will be required to always maintain $25,000 equity in your brokerage account. If your account equity falls below $25,000, a day trading minimum equity call will be issued on your account requiring you to deposit additional funds or securities.
WHAT FEES WILL I PAY?
We charge commissions per transaction, which are negotiable. These charges appear on your trade confirmations. Brokerage and other fees may be charged and will appear on your account statement. Examples are:
Market Data Fees – ECN/Exchange Fees – Trading Software Platform Fees – Margin Interest – Wire Transfer Fees – Inactivity Fees – Stock Loan Fees (if applicable)
You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.
ASK YOUR FINANCIAL PROFESSIONAL…
- Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs and how much will be invested for me?
- How will you choose investments to recommend to me?
- Given my financial situation, should I choose an investment advisory service? Why or why not?
WHAT ARE YOUR LEGAL OBLIGATIONS TO ME WHEN PROVIDING RECOMMENDATIONS? HOW ELSE DOES YOUR FIRM MAKE MONEY AND WHAT CONFLICTS OF INTEREST DO YOU HAVE?
We do not make recommendations regarding securities, investment strategies or account types. The way we make money may create a conflict with your interests. You should learn about and ask us about these conflicts, because they may affect the services we provide. Here are some potential conflicts to consider.
Trading Activity. We have an incentive to encourage you to trade more frequently and in greater amounts because we receive more revenue and other benefits when you do so.
Margin. The margin interest we charge you to facilitate trading is revenue for us. The more you trade using margin, the more money we earn.
Payment for Order Flow. We transact business on various market venues, and with varying market participants, including, without limitation, exchanges, electronic communication networks or other broker-dealers during normal business hours and during extended trading sessions and we may receive remuneration for orders in equity securities routed to broker-dealers or market centers for execution. This may include certain rebates and/or other cost savings. While transacting business on behalf of clients, though not responsible for the routing their orders, we may be the recipient of certain rebates and or savings which may, in some cases, be benefits that could be construed as falling within the definition of “payment for order flow.”
HOW DO YOUR FINANCIAL PROFESSIONALS MAKE MONEY?
As your account is self-directed, no individual financial professional will make money on your account directly. Our financial professionals generally are paid a base salary with a performance bonus at year-end.
ASK YOUR FINANCIAL PROFESSIONAL…
- How might your conflicts of interest affect me, and how will you address them?
DO YOU OR YOUR FINANCIAL PROFESSIONAL HAVE LEGAL OR DISCIPLINARY HISTORY?
Yes. You may visit: https://www.investor.gov/CRS or https://brokercheck.finra.org/ for free and simple tools to research us and our registered representatives.
ADDITIONAL INFORMATION
You can obtain additional information about us and request a copy of this relationship summary at http://www.hold.com/customerdisclosures.html or by emailing info@guardiantrading.com.