Opening Different Types of Accounts

What types of accounts can an online investor open with CompassWeb Brokerage?

How do I open a(n):

Individual Account?

Joint Account?

IRA Account?

Qualified Plan account?

Custodial Account?

Estate or Trust Account?

Corporate or Partnership Account?

Investment Club Account?

What is a:

Transfer on Death Account?

Cash on Hand Account?

A number of states have adopted transfer-on-death (or payable-on-death) statutes which allow an owner of securities to designate a beneficiary upon registration of the securities. This enables securities to pass directly to the beneficiary without probate. It does not, however, avoid estate tax if applicable.

Transfer on Death accounts can only be opened for customers who are residents of the following states:

Alaska Arizona Arkansas Colorado Florida Illinois Kansas Maryland

Minnesota Missouri Montana Nebraska New Jersey New Mexico North Dakota Ohio

Oklahoma Oregon South Dakota Utah Washington West Virginia Wisconsin Wyoming

Transfer-on-death accounts can be opened as individual accounts or joint accounts. A maximum of three beneficiaries may be designated for each account. Only individuals or inter vivos trusts for the benefit of individuals may be designated as beneficiaries. An inter vivos trust is established between living persons, as opposed to a testamentary trust which goes into effect when the person who establishes the trust dies. To open a transfer-on-death account, please call 1-800-COMPASS or 1-800-239-1930 for additional forms and information.

Based on information you provide in your account application or by the nature of the account you are opening or the type(s) of transaction you wish to make, your account may be opened or subsequently coded as a cash-on-hand account. With this type of account, you must deposit sufficient funds to cover the cost of a purchase prior to placing a trade. When you sell, the securities must be in the account prior to placing the trade. Please note that all retirement accounts are cash-on-hand accounts. CompassWeb Brokerage reserves the right to make any account a cash-on-hand account without prior notice.

Securities and Investment Products are not FDIC insured, may lose value and have no bank guarantee.