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Automated Trading

What are commission-free trades?

Commission-free trades are motif portfolio or single stock trades that carry no commission fees when executed.

In a Motif trading account, all professional motif and single stock trades (outside of built or community motifs) are commission-free when you select the option to trade at next market open. Auto-reinvest dividends, auto-invest, and auto-rebalance trades of professional motifs are also commission free.

With an optional Motif BLUE subscription, you get three commission-free real-time trades and five commission-free next market open trades for motifs built by you or the community per month. Unused commission-free trades do not roll over to subsequent months.

In a Motif Direct Index account or Impact account, all trades are commission free.

What are “next market open” trades?

When placing a market order, you will have the option to execute it in real-time or at the “next market open”. When selecting “Next market open” or if the trade is placed after market hours, it will be scheduled to be executed when the market opens on the next trading day (9:30am ET).

The benefit for selecting this option is that these trades carry no or reduced commission fees. All automated trades (e.g. auto-invest, auto-rebalance) are also executed at the next market open.

Keep in mind, placing market orders at market open can be considered risky because a lot can change from market close one day to market open the next. For example, company’s earnings announcement with significant news, world events, and activity in international markets can all create volatility in overnight stock prices.

What is auto-rebalance and which motifs are eligible?

Rebalancing ensures your professional motifs are up-to-date and stay true to your original strategy. It also helps enforce the discipline of buying low and selling high as you adjust your positions back to your target weights. With auto-rebalance, we do this for you so your professional motifs are always current.

Once enrolled, you can choose which professional motifs to auto-rebalance, and we’ll always notify you when a rebalance will happen so that you remain in control. Only professional motifs are eligible. All auto-rebalance trades are commission-free.

How is Auto-Reinvest Dividends different from traditional DRIPs?

Traditional dividend reinvestment programs use cash dividends from a stock to purchase additional shares of the same stock. With auto-reinvest, all cash dividends will accumulate as dividend balance that will be used to purchase shares of any stock or ETF of your choice. Get started with DRIPs here. 

When do my dividends start to accrue in the Dividend Balance?

As soon as you opt into the Auto-Reinvest Dividend program, cash dividends from any dividend paying security you own in a given trading account will begin to accumulate as dividend balance. If you opt out at any time, the dividends will be deposited directly into your cash balance.

How is the dividend reinvestment minimum calculated?

The minimum number of shares you can purchase is 0.01. A market fluctuation reserve is also applicable because this is a next market open trade. The minimum reinvestment amount will be the current share price of the chosen stock or ETF multiplied by a market fluctuation reserve and then multiplied by 0.01.

How often can I change the security in auto-reinvest? Are there any restrictions on my choice of a security?

As often as you like. You can pick any security to reinvest the dividend balance into.

If I opt out of auto-reinvest, what happens to my cash dividends?

By default or if you opt out, all cash dividends will be deposited directly into your trading account’s cash balance.

Will the securities purchased with reinvested dividends be added to the motifs I currently own?

No, the security purchases made through the auto-reinvest program will be a part of your single stocks portfolio.

At this time, we don’t offer reinvestment of stock dividends into motifs.

Can I reinvest my accrued dividends into my motifs?

No, we don’t offer reinvestment of stocks dividends into owned or new motifs. You can choose to reinvest into a single stock or ETF that will create a single stock position in your account.

Are there any conditions under which my dividends won’t be reinvested?

If you currently owe fees (licensing, BLUE subscription) and do not have enough cash balance to cover your fees, the dividend balance will be used to recover your fees. We will also apply a market fluctuation reserve because the reinvestment will be a next market open trade and it is possible that the entire dividend balance is not reinvested. The balance, however, will be added back to the dividend balance and reinvested the next time.

When does the auto-rebalance of professional motifs occur?

Enrolled motifs with an available update are automatically rebalanced on Mondays at 9:30am ET. Note, if the auto-rebalance falls on a market holiday, your motif will be updated the following day.

You stay in control by selecting which of your professional motifs will be auto-rebalanced, and you’ll always be notified before a rebalance occurs. If you need to make a change, you may cancel an upcoming rebalance transaction at any time before 9:20am ET on the scheduled rebalance date.