Showing disclosures

Effective January 6, 2025, DriveWealth sunset the Limited Purpose Margin Account (LPMA) type. Accounts formerly known as being LPMA are Margin Accounts with 1:1 leverage, and the provisions within the LPMA Agreement have been repositioned into the Customer Account Agreement and Margin Risk Disclosures available at legal.drivewealth.com. Please contact your DriveWealth Relationship Manager with any questions.

To open a brokerage account with DriveWealth, customers are required to review and consent to a set of predefined disclaimers and disclosures. The specific documents presented vary based on factors such as the account type, the customer’s geographic location, and other criteria outlined below.

Partners have the option to either embed the applicable disclosure URLs directly within their user interface or host them on their own web pages, depending on their preferred integration approach.

Standard language presented

Fundamentally, a customer must be prompted on the platform that they have read and agreed to the agreements provided to them prior to continuing through the onboarding process. Agreement can be identified by having the customer digitally sign their full legal name, or through a checkbox. Through either path, typical language includes the following pattern:

❗ "By checking the box below you acknowledge that you have read and agree to all disclaimers and disclosures presented

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Prior to exposing any disclosure language, review all material with legal counsel to ensure it complies with local regulations.

List of Required Disclosures

Customer Account Agreement

This agreement outlines the terms and conditions governing your brokerage account with DriveWealth, including account management, transaction processing, and regulatory compliance.

Display Requirement(s):
URL: Drivewealth Customer Account Agreement

Trading Disclosure

This disclosure outlines the key terms, risks, and limitations associated with investing in fractional shares through DriveWealth.

Display Requirement(s):
URL: Trading Disclosure

Terms of Use

This document outlines the terms and conditions governing the use of DriveWealth's digital properties, including user responsibilities, permitted uses, and limitations of liability.

Display Requirement(s):
URL: Terms of Use

Rule 14b1(c)

A customer’s name, address and relevant investment holdings are required to be disclosed by DriveWealth to Issuers whose investment you own. A customer can opt out of providing this information to Issuers.

Display Requirement(s):
Verbiage: “Rule 14b1(c)”: Rule 14b-1(c) of the Securities Exchange Act, unless you object, requires us to disclose to an issuer, upon its request, the names, addresses, and securities positions of our customers who are beneficial owners of the issuer's securities held by us in nominee name. The issuer would be permitted to use your name and other related information for corporation communication only.”

Privacy Policy

Describes how DriveWealth needs to collect, use, disclose, transfer, store, retain or otherwise process customer personal data in order to service the brokerage account.

Display Requirement(s):
URL: Privacy Policy

All DriveWealth Disclosures and Agreements

A list of all DriveWealth disclosures including DriveWealth's BCP, funding policies, etc.

Display Requirement(s):
URL: All DriveWealth Disclosures and Agreements

Tax Disclosure

This disclosure outlines the tax reporting responsibilities and certification requirements for customers maintaining brokerage accounts with DriveWealth.

Display Requirement(s):
URL:
For US Customers: W-9 Agreement
For Non-US Customers: W-8BEN Agreement

List of Add-on Disclosures(as applicable)

✅ - Required ❌ - Not Applicable/Not supported ❗- Conditional requirement

Margin Risk Disclosure

This statement outlines the risks associated with trading securities on margin through DriveWealth, including potential losses, margin calls, and the firm's rights to liquidate assets without prior notice.

Display Requirement(s):
URL: Margin Risk Disclosure Statement

Cash Management Program (Bank Sweep)

Automatically invests or sweeps free credit balances in your DriveWealth brokerage accounts into a FDIC Bank Account.
❗ only required if entering into bank sweep program.

Display Requirement(s):
URL: Cash Management Program Disclosure Statement - Bank Sweep

Cash Management Program(Money Market Sweep)

Automatically invests or sweeps free credit balances in your DriveWealth brokerage accounts into a Money Market Fund.
❗ only required if entering into money market fund

Display Requirement(s):
URL: Cash Management Program Disclosure Statement - Money Market

Market Data Agreements

Display Requirement(s):
Verbiage: “I acknowledge that I have read the market data agreements below from the represented exchanges. I hereby certify that I qualify as a non-professional pursuant to the definitions described herein.”
URL: NASDAQ Subscriber Agreement
NYSE/AMEX Subscriber Agreement

IRA Account Agreement

This document outlines the terms, conditions, and IRS requirements for establishing and maintaining an Individual Retirement Account (IRA) with DriveWealth, including contribution limits, investment restrictions, and distribution rules.

Display Requirement(s):
URL: IRA Custodial Account Agreement and Disclosures

Dividend Reinvestment Product Agreement

This disclosure outlines the terms, eligibility criteria, and operational details of DriveWealth's Dividend Reinvestment Program (DRIP), allowing enrolled customers to automatically reinvest dividends into eligible securities.

❗required only if enabling DRIP

Display Requirement(s):
URL: Dividend Reinvestment Product Agreement

Fully Paid Securities Lending(FPSL) Agreement

These documents outline the terms and conditions of DriveWealth’s Fully Paid Securities Lending (FPSL) program, including customer participation and agreement requirements.

❗required only if enabling FPSL

Display Requirement(s):
URLs: FPSL - Master Securities Lending Agreement
Fully Paid Securities Lending(FPSL) Disclosures

Extended Hours Agreement

This disclosure outlines the terms, trading hours, and associated risks of participating in DriveWealth’s Extended Hours Trading sessions, including Pre-Market and Post-Market periods.

❗required only if enabling Extended Hours Trading

Display Requirement(s):
URLs: Extended Hours Disclosure

Options Customer Account Agreement

This agreement outlines the terms, conditions, and risks associated with trading options through DriveWealth, including customer responsibilities and the firm's rights regarding option transactions.

❗required only if enabling Options

Display Requirement(s):
URL: Options Customer Account Agreement

Wallet Trading Disclosure

This disclosure outlines the terms, responsibilities, and limitations associated with using a digital wallet in conjunction with a customer's DriveWealth brokerage account, including the roles of your Introducing Firm and Wallet provider.

Display Requirement(s):
URL: Wallet Trading Disclosure

Passing acceptance through the API

Once a customer has acknowledged that they have read and accepted all the applicable agreements, the DISCLOSURES and MARGIN_DISCLOSUREobjects used to create the customer should have all required fields set to true.

❗ Exception: The findersFee field must always be set to false.

Additionally, the API request requires a digital signature. This should be the customer's full legal name, passed as a string within the signedByparameter, as demonstrated in the example below:

{
  "type": "DISCLOSURES",
  "data": {
    "termsOfUse": true,
    "customerAgreement": true,
    "marketDataAgreement": true,
    "rule14b": true,
    "findersFee": false,
    "privacyPolicy": true,
    "dataSharing": true,
    "extendedHoursAgreement": true,    //optional
    "iraAgreement": true,              //optional 
    "optionsAgreement":true,           //optional
    "signedBy": "Calvin Broadus Jr."
  }
},
{
      "type": "MARGIN_DISCLOSURE",
      "data": {
        "marginAgreement": true       //optional
      }
    }