IMPORTANT UPDATE:

After careful consideration and thoughtful deliberation, together with our affiliates, Equity Trust Company and Equity Advisor Solutions, we have decided to defer our transition to self-clearing that was scheduled for December 2, 2023. While not an easy decision, the additional time will allow for minimal disruption to our year end processes and further preparation for the conversion. We have not finalized the new timeline and will update the Conversion page and FAQs when available. If your account was impacted by the conversion, ETC Brokerage is sending you an updated notice with additional information about the deferral.

What you need to know:

  • The conversion date for moving accounts from Axos to ETCB is December 2, 2023.
  • If you have an existing account with ETC Brokerage, your brokerage account number will not change.
  • We will keep you informed throughout the process until your transfer is complete.
  • No action is required to affect the transfer of your account from Axos to ETCB.
  • You have the right to opt out of the conversion. Instructions were provided in the Negative Consent Letter that was sent to affected parties. You can also review the respective FAQs (below) for instructions on how to opt out.
  • Customers with an existing ETC Brokerage account will continue to have access to their account through myEQUITY via single sign on.

Transition Timeline

Conversion Date: December 2, 2023

To facilitate the transfer of your account(s), online account access will be temporarily disabled during the weekend of your transfer date. As a result, we encourage you to plan ahead to take care of any account-related business and banking transactions by market close on the Friday of your transfer date.

November 1, 2023

  • The last date ETCB will open a new brokerage account. After this date, ETCB will not accept any brokerage account applications until after the conversion has been completed.
  • The last date ETCB will add options trading to an existing account. After this date, ETCB will not accept any options applications until after the conversion has been completed.
  • The last date ETCB can accept changes for contact information or e-delivery preferences.

November 24, 2023

  • The last date ETCB will process an incoming transfer request.

The Week before Conversion

  • Self-Directed Retail Accounts: Orders can continue to be placed in your existing brokerage account from the current trading portal through November 29, 2023 and by calling ETCB directly, through market close, 4 pm ET, on Friday, December 1, 2023.
  • Advisor Managed or accounts with a Designated Financial Professional: Orders can continue to be placed through Orion or by calling ETCB directly, through market close, 4 pm ET, on Friday, December 1, 2023.

Wednesday, November 29, 2023

  • The last date to opt out of the conversion. If wishing to opt out of the transfer, this is the last date your transfer out of Axos to another broker-dealer can be submitted. Note that any transfer received after this date and up to the date of conversion will be rejected.
  • The last date ETCB will submit an outgoing transfer request.
  • All open orders will be cancelled.
  • The last day orders will be accepted through the existing client trading portal for all ETC retail customers.

Thursday, November 30, 2023

  • Equity Trust retail customers can contact ETCB by phone to place orders. As noted above, November 29 is the last day orders are accepted through the online trading portal.
  • Only ‘Day’ orders will be accepted.

Friday, December 1, 2023

  • The last day Equity Trust retail customers can contact ETCB by phone to place orders.
  • Only ‘Day’ orders will be accepted.
  • No trading will be permitted after 4 pm EST, the close of regular market trading hours.
  • Online account access will be disabled.

Weekend of December 2, 2023

  • Conversion takes place and accounts are transferred to ETCB.

Monday December 4, 2023

  • Accounts will be accessible online in the new trading portal.
  • Trades may be entered through the new portal.
  • ETCB will resume accepting GTC orders.
  • Open Orders can be entered, if desired.
  • Incoming and outgoing transfer requests will resume.
  • Brokerage account applications will once again be accepted.

After the Transfer Date

Account Statements and Tax Documents

ETC Retail Customers
You will receive two account statements for the month in which your Axos account(s) are transferred to ETCB:

  1. One from Axos reflecting any account activity that took place prior to the transfer and the movement of all securities, funds, and balances to ETCB; and
  2. Another from ETCB detailing any account activity that took place after the transfer, as well as the receipt of all securities and funds from your Axos account(s).

Customers may receive additional account statements from Axos if there is any residual activity (e.g. interest payments or dividends) that happens after the transfer date. After the conversion, you will continue to receive your brokerage account statements no less frequently than quarterly.

Advisor Managed/Accounts with a Designated Financial Professional
Depending on your account type, you could receive account statements for the last reporting period of 2023 from Axos Clearing, Equity Trust, and ETCB. In the future, you will only receive your brokerage account statement from ETCB. Similarly, you could receive Internal Revenue Service (IRS) tax forms reflecting reportable activity in your account for the 2023 tax year from Axos, Equity Trust, and/or ETCB. You may be required to utilize information from all tax forms when completing your tax returns. Please consult your tax advisor with questions regarding tax reporting.

New Statement Format – Sample

<Coming Soon!>

Trade Confirmations- Sample

<Coming Soon!>

SIPC

ETCB is a member of the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). An explanatory brochure is available upon request or at sipc.org. Account protection applies when a SIPC-member firm fails financially and is unable to meet obligations to securities clients, but it does not protect against market fluctuations, securities fraud claims or other losses that are unrelated to our solvency.

Important Documents & Agreements

FAQs

Frequently Asked Questions (FAQ) for Self-Directed Retail Brokerage Accounts

Q1. How can I view ETC Brokerage’s Customer Relationship Summary (Form CRS)?
To view ETC Brokerage’s current Customer Relationship Summary (Form CRS), please click here.  To view ETC Brokerage’s future Customer Relationship Summary (Form CRS), effective on the Conversion Date, please click here.
Q2. Will my account remain with Equity Trust Company?

Yes. Equity Trust Company will remain the custodian on your account. The relationship with Equity Trust Company will not change.

The asset number for your ETC Brokerage account position within your Equity Trust account will be changing from 076719 to a new Asset Number. This will be visible within the Portfolio Positions page in myEQUITY and on your Equity Trust quarterly statements.

Q3. Can I still access my ETC Brokerage account from myEQUITY?

Yes.  You will still be able to access your ETC Brokerage account through myEQUITY via a single sign on like you do today.

Q4. Will my account number change?
No. Your ETC Brokerage account number and your Equity Trust account number will both remain the same.
Q5. Are there any new agreements that I need to be aware of as a result of the conversion?
Yes. Effective with the Conversion Date, your ETCB account(s) will be governed by ETCB’s updated Account Owner Agreement.

By not exercising your right to opt out of the Transfer and continuing to maintain your account, you are agreeing to terms in the above referenced Agreement and the Disclosures and Notices, all of which can found here. To request a free paper copy of these Agreements or disclosures, please contact us at: 877-403-0369 or email [email protected].

Q6. How is the transfer going to work?

Axos will transfer your positions to ETCB, at no cost to you (the “transfer”). The transfer will automatically and securely occur during the weekend of December 2, 2023 (the “conversion date”). You do not need to take any action to participate in the transfer.

Q7. Can I opt out of the transfer?

You have the right to object from the transfer by taking the following steps:

  1. Email [email protected] to inform us of your intent to opt out; and
  2. Close or move your account(s) to another custodian of your choice. If closing your account, you will liquidate your positions on or before November 29, 2023 and any cash proceeds will be swept to your Equity Trust account. If transferring to a new custodian, that custodian must provide ETCB with transfer instructions that are in good order, on or before November 29, 2023. These requests can be faxed to 440-365-1447 or mailed to ETCB, Attn: ETC Brokerage, PO Box 451340, Westlake, OH 44145.

If you contact us to object but do not take the necessary steps as outlined above to close or transfer your account, then you will participate in the transfer and your account(s) will securely and automatically transfer to ETCB on the conversion date. If you object to the transfer in accordance with the steps above, then your ETCB transfer fees will be waived.  ETCB will also waive your ACAT fee for 60 days after the conversion date if you are unsatisfied with the services offered or submitted your transfer after the conversion date. Note that other applicable fees, consistent with the new Fee Schedule, may apply.

Please note, after November 29, 2023, we will reject any requests to transfer assets to another firm/custodian or close an account. If this happens, we will instruct you to have your new firm/custodian resubmit the request on or after December 4, 2023. We will also not accept incoming transfers after November 24, 2023. We will resume accepting new transfer requests the week of December 4, 2023.

Q8. Can I continue to place orders through the conversion date?

On Wednesday, November 29, 2023, after market close, we will cancel any order to purchase or sell securities that remain open in your account. Please note that cancelled orders will not automatically be reentered. If you would like to reenter an order, you will need to contact us to reenter the order on December 4, 2023. We encourage you to review all your open orders in advance of the transfer.

Orders can continue to be placed in your account from the current trading portal through market close, 4 pm ET, on Wednesday, November 29, 2023. After that, online trading will be disabled and orders can only be placed by calling ETCB through market close, Friday, December 1, 2023. To give us time to prepare for the transfer, access to your existing account will be restricted over the conversion weekend. Starting on Monday, December 4, 2023, when the market opens, access to your new account will be available and trading through ETCB’s trading portal will resume. Please note that although trading can continue through Friday, December 1, 2023, only ‘Day’ orders will be accepted. Good-til-Canceled (GTC) orders will not be accepted until Monday, December 4, 2023.

Q9. How are my orders going to be handled during the week of conversion?

Through Wednesday, November 29, 2023, orders will be routed to Axos Clearing, our current clearing firm, for execution and settlement. Beginning Thursday, November 30, 2023, all equity orders will continue to be placed with ETCB as described above in Q8, but they will be executed and settled by ETCB. All mutual fund orders will continue to be placed with ETCB as described in Q8, but will be executed and settled by Axos Clearing

 

Q10. Will there be a new fee schedule as part of the conversion?
Yes. Please click here to view the updated fee schedule.
Q11. Will the new brokerage account platform look and operate differently than it does today?
In general, no. The trading platform is essentially the same design and set up as it is today. You will continue to have the same features available to you.
Q12. What securities am I able to trade post conversion?
ETC Brokerage offers stock, bond, mutual fund, and option trading to existing Equity Trust Company clients. Options trading will require an additional Options Agreement be completed and approved before the account can trade options. If your account has already been approved for options trading prior to the conversion, your account will carry forward that approval.
Q13. Will my paperless (e-delivery) preferences move to ETC Brokerage?
Yes, your paperless preferences will move to ETC Brokerage. Please ensure that your account’s contact information and delivery preferences are up to date with ETCB before November 1, 2023.
Q14. If I have a position that does not immediately transfer to ETCB on the conversion date, what happens?

Axos will continue to send statements on a regular basis, monthly or quarterly, for any position that remains at Axos until the account reflects a $0.00 balance. Please review your Axos account statements for additional information.

If any of your securities are impacted by a voluntary corporate action (e.g., a tender offer) on or around the conversion date, those securities will likely remain in your Axos account until the corporate action is completed. Upon completion (and with no action on your part), the securities or cash proceeds will move to your ETCB account. Until then, they will not be reflected in your ETCB account. Therefore, you will not be able to trade these securities at ETCB and we will not be able to provide you with reporting on these securities. Please review your Axos account statements for additional information. If you request to transfer your assets/opt out of the transfer, corporate actions could impact the ability to move your asset. In that case, the asset(s) will remain with Axos until the corporate action is complete.

The value of any securities or resulting cash proceeds for corporate action events that remain in your current Axos account will not be included in your ETCB account.  You will not be able to trade these securities at ETCB, nor will ETCB be able to provide you with any reporting on these securities.  Please consult your Axos account statements for information about any securities affected by a corporate action.

Q15. If I currently invest some cash into the Axos Clearing Insured Deposits Program, what will happen to this cash upon conversion?
If you invest your available cash into Axos’ Clearing Insured Deposits Program, your funds will be redeemed from the Axos program and then transferred and deposited into the ETCB FDIC Insured Deposit Program. We encourage you to review the disclosures concerning this Program here. This does not impact any cash in your Equity Trust account.

The table below outlines the key differences between the two products.

Program Name Identifier Description Annual Percentage Yield (APY)
Axos Cash Sweep Program DLD Axos Clearing Insured Deposit Program 0.01%
ETCB Cash Sweep Program FDICT1SWP ETCB FDIC Insured Deposit Program 0.01%
Program Name Axos Cash Sweep Program ETCB Cash Sweep Program
Identifier DLD FDICT1SWP
Description Axos Clearing Insured Deposit Program ETCB FDIC Insured Deposit Program
Annual Percentage Yield (APY) 0.01% 0.01%
Q16. If I currently invest my cash with Equity Trust Company, what will happen to this cash upon conversion?

If you currently invest your cash with Equity Trust Company, this will not change. Additionally, unless otherwise directed by you, cash will continue to sweep back to your Equity Trust Company account.

Q17. Will there be a blackout period for opening a new brokerage account?
Yes. The last date ETCB will open a new brokerage account is November 1, 2023. After this date, ETCB will not accept any brokerage account applications until after the conversion. Additionally, please note that only our new Brokerage Applications containing the new Account Owner Agreement and appropriate disclosures will be accepted. ETCB will not be able to accept any outdated versions of our applications after the conversion.

Additionally, please note that the last day to add options trading to your existing brokerage account is November 1, 2023. After this date, ETCB will not accept any options applications until after the conversion. Additionally, please note that only our new Options Agreement containing the new appropriate disclosures will be accepted. ETCB will not be able to accept any outdated versions of our forms after the conversion.

Q18. Will I be able to access historical Information?

No. You will need to refer to your historical Axos account statements or you can email [email protected] and make a specific request for historical information.

Q19. How can I view ETC Brokerage’s Privacy Notice?
Please click here to view ETC Brokerage’s Privacy Notice
Q20. What do I need to know about account statements?
You will receive two account statements for the month in which your Axos account(s) are transferred to ETCB:

  1. One from Axos Clearing, displaying a zero balance along with any account activity details that took place prior to the transfer, as well as the movement of all securities, funds, and balances to ETCB; and
  2. Another from ETCB detailing any account activity that took place after the transfer, as well as the receipt of all securities and funds from your Axos account(s).

After the conversion, you will continue to receive your brokerage account statements no less frequently than quarterly.

Q21. What else do I need to know about my new account with ETCB, effective with the conversion date?

In addition to accessing your ETCB account through your myEQUITY account like you do today, you also have direct access to your account through a link on the ETCB website.

Your existing username for this direct access will remain the same, but you will be sent a new temporary password upon conversion. More information on this temporary password will be communicated at a later date. Please be on the lookout for future communications or updates to these FAQs.

Additionally, the existing URL for direct access will be changing so it will be important to discontinue using any bookmarked websites for ETCB upon the conversion.

Frequently Asked Questions (FAQ) for Advisor-Managed Brokerage Accounts with Equity Advisor Solutions

Q1. How can I view ETC Brokerage’s Customer Relationship Summary (Form CRS)?
To view ETC Brokerage’s current Customer Relationship Summary (Form CRS), please click here.  To view ETC Brokerage’s future Customer Relationship Summary (Form CRS), effective on the conversion date, please click here.
Q2. Who is going to act as the custodian of my account?

Your account will move from your current custodian, Equity Trust Company, to the new custodian, ETC Brokerage (ETCB), an Equity Trust Company affiliate.

Q3. Will my account number change?

If you have an existing ETC Brokerage account, that account number will not change. Your Equity Trust account number starting with “D” and/ or “200” will change. We will be sending you additional information in the future, and you can consult with your financial professional.

Q4. Where can I find the Directed Trustee Agreement?
Please click here to view the Directed Trustee Agreements and select your account type.
Q5. Will my relationship and any agreements with my financial representative or advisor change as a result of this conversion?

No. All relationships with your existing financial representative or advisor will remain the same.

Q6. Are there any new agreements that I need to be aware of as a result of the conversion?

Yes. To view your updated agreements and disclosures, see: Important Documents and Agreements.

Q7. How is the transfer going to work?

At no cost to you, your brokerage positions cleared through Axos will transfer to ETCB and your Equity Trust account will transfer to ETCB (the “transfer”).

You do not need to take any action to participate in the transfer. However, if you do not have an existing ETCB account as of the date of this Notification, please contact your Designated Financial Advisor who has additional information for you.

The transfer will automatically and securely occur during the weekend of December 2, 2023 (the “conversion date”).

Q8. Can I opt out of the transfer?

You have the right to object to the transfer by taking the following steps:

Email [email protected] to inform us of your intent to opt out; and

Close or move your account(s) to another custodian of your choice. If closing your account, your distribution/withdrawal[1] paperwork must be in good order and received on or before November 29, 2023. If transferring to a new custodian, that custodian must provide Equity Trust with transfer instructions that are in good order, on or before November 29, 2023. These requests can be submitted to your Designated Financial Advisor, via fax 440-365-1447, or mailed to Equity Trust Company, Attn: EAS Operations, PO Box 451249, Westlake, OH 44145.

Please note, a distribution from a retirement account could result in a taxable consequence. Please contact your Designated Financial Advisor and/or your tax professional for more information.

Additionally, if you contact us to object (via email) but do not take the necessary steps to close or transfer your account as outlined above, then you will participate in the Transfer and your account(s) will securely and automatically transfer to ETCB on the Conversion Date. If you object to the Transfer in accordance with the steps above, then your transfer fees will be waived. ETCB will also waive your ACAT fee for 60 days after the conversion date if you are unsatisfied with the services offered or submitted your transfer after the conversion date. Note that other applicable fees, consistent with the new Fee Schedule, may apply.

After November 29, 2023, we will reject any requests to transfer assets to another firm/custodian or close an account. If this happens, we will instruct you to have your new firm/custodian resubmit the request on or after December 4, 2023. Note, we will also not process new incoming transfers after November 24, 2023. We will resume accepting new transfer requests the week of December 4, 2023.

Q9. Can my financial professional continue to place orders in my account through the conversion?

On Wednesday, November 29, 2023, after market close, we will cancel any order to purchase or sell securities that remains open in your account.  Please note that cancelled orders will not automatically be reentered.  If you would like to reenter an order, you will need to contact us or your Designated Financial Advisor to reenter the order on December 4, 2023. We encourage you to review your open orders with your Designated Financial Advisor in advance of the transfer.

To give us time to prepare for the transfer, your Designated Financial Advisor will be able to place orders in your account(s) through market close on Friday, December 1, 2023. After that, access will be restricted. Starting on Monday, December 4, 2023, when the market opens, access will be restored, and your Designated Financial Advisor can log into ETCB’s new trading portal to transact in your account(s). Please note that although trading can continue through Friday, December 1, 2023, only ‘Day’ orders will be accepted. Good-til-Canceled (GTC) orders will not be accepted until Monday, December 4, 2023.

Q10. How are my orders going to be handled during the week of conversion?

Through Wednesday, November 29, 2023, orders will be routed to Axos Clearing, our current clearing firm, for execution and settlement. Beginning Thursday, November 30, 2023, orders can continue to placed with ETCB, but they will be executed and settled by ETCB.

Q11. Will there be a new fee schedule as part of the conversion?
A general fee schedule can be found here but please consult with your Designated Financial Advisor for specific information applicable to your account.
Q12. I have multiple accounts in a household; will all the accounts move at the same time?
Yes, all accounts will move at the same time.
Q13. How can I access my ETC Brokerage account?

You can access your ETC Brokerage account by visiting our website, www.etcbrokerage.com and clicking on the ETC Brokerage Account Login link at the top right of the page. You will be required to use your new username and temporary password. This information will be communicated to you at a later date. Please be on the lookout for future communications or updates to these FAQs.

Note that an email address is required to gain access to your account online. Please provide an email address to us if you have not already.

Q14. Where will I get my statements, confirms, and tax documents after the change?

After you establish new login credentials through the ETC Brokerage portal, you will have access to view certain statements, confirms, and tax documents. Please see Q13 above for information on how to access your account. You may also contact your representative/advisor who can provide additional information.

Additionally, if you are unable to access your ETCB account online, you can access your brokerage documents by directly logging into your Investor Mailbox. The URL for this direct login is https://im.mediantonline.com/invmailbox/ETCB/login. You will need to self-register your account upon your first login. The account number to enter will be your eight (8) digit ETCB account number without any dashes. Should you need any assistance, please contact ETCB directly at 877-819-8918.

Q15. Will my paperless (e-delivery) preferences move to ETC Brokerage?
Yes, your paperless preferences will move to ETC Brokerage. Please ensure that your account’s contact information and delivery preferences are up to date with your advisor and EAS/ETCB before November 1, 2023.
Q16. If I have a position that does not immediately transfer to ETCB on the conversion date, what happens?

Axos will continue to send statements on a regular basis, monthly or quarterly, for any position that remains at Axos until the account reflects a $0.00 balance. You will need to review your Axos account statements for additional information.

If any of your securities are impacted by a voluntary corporate action (e.g., a tender offer) on or around the conversion date, those securities will likely remain in your Axos account until the corporate action is completed. Upon completion (and with no action on your part), the securities or cash proceeds will move to your ETCB account. Until then, they will not be reflected in your ETCB account. Therefore, you will not be able to trade these securities at ETCB and we will not be able to provide you with reporting on these securities. Please review your Axos account statements or consult your Designated Financial Advisor for additional information. If you request to transfer your assets to opt out of the transfer, corporate actions could impact the ability to move your asset. In that case, the asset(s) will remain in your Axos account until the corporate action is complete.

The value of any securities or resulting cash proceeds for corporate action events that remain in your current Axos account will not be included in your ETCB account.  You will not be able to trade these securities at ETCB, nor will ETCB be able to provide you with any reporting on these securities.   Please consult your financial representative for additional information.

Q17. What is going to happen to the cash in my account?
After the transfer, we will deposit your cash in our FDIC Insured Deposit Program. We encourage you to review the disclosures concerning this program in your new Account Owner Agreement and the FDIC Insured Deposit Program materials found here.

If you elected to have your excess cash swept and invested into the Axos Clearing Insured Deposits Program, these funds will be redeemed from the Axos program and then transferred and deposited into the ETC Brokerage Services FDIC Insured Deposit Program.

The table below outlines the key differences between the two products.

Program Name Identifier Description Annual Percentage Yield (APY)
Axos Cash Sweep Program DLD Axos Clearing Insured Deposit Program 0.01%
ETCB Cash Sweep Program FDICT1SWP ETCB FDIC Insured Deposit Program 0.01%
Program Name Axos Cash Sweep Program ETCB Cash Sweep Program
Identifier DLD FDICT1SWP
Description Axos Clearing Insured Deposit Program ETCB FDIC Insured Deposit Program
Annual Percentage Yield (APY) 0.01% 0.01%
Q18. Will there be a blackout period for opening a new brokerage account?

Yes. The last date ETCB will open a new brokerage account is November 1, 2023. After this date, ETCB will not accept any brokerage account applications until after the conversion. Additionally, please note that only our new Brokerage Applications containing the new Brokerage Account Agreement and appropriate disclosures will be accepted. ETCB will not be able to accept any outdated versions of our applications after the conversion.

Additionally, please note that the last day to add options trading to your existing brokerage account is November 1, 2023. After this date, ETCB will not accept any options applications until after the conversion. Additionally, please note that only our new Options Agreement containing the new appropriate disclosures will be accepted. ETCB will not be able to accept any outdated versions of our forms after the conversion.

Q19. How can I view ETC Brokerage’s Privacy Notice?

Please click here to view ETC Brokerage’s Privacy Notice.

Q20. What do I need to know about Account Statements and Tax Forms?

Depending on your account type, you could receive account statements for the last reporting period of 2023 from Axos Clearing, Equity Trust, and ETCB. These statements will show account activities and the transfer of your assets. Going forward, you will receive your brokerage account statements from ETCB. Similarly, you could receive Internal Revenue Service (“IRS”) tax forms reflecting reportable activity in your account for the 2023 tax year from Equity Trust and/or ETCB. You may be required to account for information from all tax forms when completing your tax returns. Please consult your tax advisor with questions regarding tax reporting.

Q21. What assets in my Equity Trust account will not transfer to ETCB?

Some assets in your Equity Trust account will not move to ETCB in the transfer. Equity Trust will continue to custody precious metals, physical real estate, cryptocurrency, and a small subset of investments that cannot transfer at this time (generally due to a bankruptcy, receivership, or litigation). If you are invested in one of these assets, Equity Trust will be providing more information.

Frequently Asked Questions (FAQ) for Self-Directed Brokerage Accounts with No Relationship to Equity Trust Company

Q1. How can I view ETC Brokerage’s Customer Relationship Summary (Form CRS)?

To view ETC Brokerage’s current Customer Relationship Summary (Form CRS), please click here.  To view ETC Brokerage’s future Customer Relationship Summary (Form CRS), effective on the Conversion Date, please click here.

Q2. Will my account number change?
No. Your ETC Brokerage account number will remain the same.
Q3. Are there any new agreements that I need to be aware of as a result of the conversion?
Yes. Effective with the Conversion Date, your ETCB account(s) will be governed by ETCB’s updated Account Owner Agreement.

By not exercising your right to opt out of the Transfer and continuing to maintain your account, you are agreeing to terms in the above referenced Agreement and the Disclosures and Notices, all of which can be found here. To request a free paper copy of these Agreements or disclosures, please contact us at: 877-403-0369 or email [email protected].

Q4. How is the transfer going to work?

Axos will transfer your positions to ETCB, at no cost to you (the “transfer”). The transfer will automatically and securely occur during the weekend of December 2, 2023 (the “conversion date”). You do not need to take any action to participate in the transfer.

Q5. Can I opt out of the transfer?

You have the right to object from the transfer by taking the following steps:

  1. Email [email protected] to inform us of your intent to opt out; and
  2. Close or move your account(s) to another custodian of your choice. If closing your account, you will liquidate your positions on or before November 29, 2023 and any cash proceeds will be swept to your Equity Trust account. If transferring to a new custodian, that custodian must provide ETCB with transfer instructions that are in good order, on or before November 29, 2023. These requests can be faxed to 440-365-1447 or mailed to ETCB, Attn: ETC Brokerage, PO Box 451340, Westlake, OH 44145.

If you contact us to object but do not take the necessary steps as outlined above to close or transfer your account, then you will participate in the transfer and your account(s) will securely and automatically transfer to ETCB on the conversion date. If you object to the transfer in accordance with the steps above, then your ETCB transfer fees will be waived. ETCB will also waive your ACAT fee for 60 days after the conversion date if you are unsatisfied with the services offered or submitted your transfer after the conversion date. Note that other applicable fees, consistent with the new Fee Schedule, may apply.

Please note, after November 29, 2023, we will reject any requests to transfer assets to another firm/custodian or close an account. If this happens, we will instruct you to have your new firm/custodian resubmit the request on or after December 4, 2023. We will also not accept incoming transfers after November 24, 2023. We will resume accepting new transfer requests the week of December 4, 2023.

Q6. Can I continue to place orders through the conversion date?

On Wednesday, November 29, 2023, after market close, we will cancel any order to purchase or sell securities that remain open in your account. Please note that cancelled orders will not automatically be reentered. If you would like to reenter an order, you will need to contact us to reenter the order on December 4, 2023. We encourage you to review all your open orders in advance of the transfer.

Orders can continue to be placed in your account from the current trading portal through market close, 4 pm ET, on Wednesday, November 29, 2023. After that, online trading will be disabled and orders can only be placed by calling ETCB through market close, Friday, December 1, 2023. To give us time to prepare for the transfer, access to your existing account will be restricted over the conversion weekend. Starting on Monday, December 4, 2023, when the market opens, access to your new account will be available and trading through ETCB’s trading portal will resume. Please note that although trading can continue through Friday, December 1, 2023, only ‘Day’ orders will be accepted. Good-til-Canceled (GTC) orders will not be accepted until Monday, December 4, 2023.

Q7. How are my orders going to be handled during the week of conversion?

Through Wednesday, November 29, 2023, orders will be routed to Axos Clearing, our current clearing firm, for execution and settlement. Beginning Thursday, November 30, 2023, orders can continue to placed with ETCB as described above in Q6, but they will be executed and settled by ETCB.

Q8. Will there be a new fee schedule as part of the conversion?
Yes. Please click here to view the updated fee schedule.
Q9. Can I access my ETC Brokerage account directly from the ETC Brokerage website?
Yes. The ETC Brokerage website will provide a direct link to the ETC Brokerage login page.  If you have an online account with ETCB today, your existing username will remain the same, but you will be sent a new temporary password upon conversion. More information on this temporary password will be communicated at a later date. Please be on the lookout for future communications or updates to these FAQs.

If you do not have an online account today but would like to create one, please contact ETCB directly at 877-403-0369 for more information.

Q10. Will the new brokerage account platform look and operate differently than it does today?
In general, no. The trading platform is essentially the same design and set up as it is today. You will continue to have the same features available to you.
Q11. What securities am I able to trade post conversion?
ETC Brokerage offers stock, bond, mutual fund, and option trading to existing Equity Trust Company clients. Options trading will require an additional Options Agreement be completed and approved before the account can trade options. If your account has already been approved for options trading prior to the conversion, your account will carry forward that approval.
Q12. Will my paperless (e-delivery) preferences move to ETC Brokerage?
Yes, your paperless preferences will move to ETC Brokerage. Please ensure that your account’s contact information and delivery preferences are up to date with ETCB before November 1, 2023.
Q13. If I have a position that does not immediately transfer to ETCB on the Conversion Date, what happens?

Axos will continue to send statements on a regular basis, monthly or quarterly, for any position that remains at Axos until the account reflects a $0.00 balance. Please review your Axos account statements for additional information.

If any of your securities are impacted by a voluntary corporate action (e.g., a tender offer) on or around the conversion date, those securities will likely remain in your Axos account until the corporate action is completed. Upon completion (and with no action on your part), the securities or cash proceeds will move to your ETCB account. Until then, they will not be reflected in your ETCB account. Therefore, you will not be able to trade these securities at ETCB and we will not be able to provide you with reporting on these securities. Please review your Axos account statements for additional information. If you request to transfer your assets/opt out of the transfer, corporate actions could impact the ability to move your asset. In that case, the asset(s) will remain with Axos until the corporate action is complete.

The value of any securities or resulting cash proceeds for corporate action events that remain in your current Axos account will not be included in your ETCB account.  You will not be able to trade these securities at ETCB, nor will ETCB be able to provide you with any reporting on these securities.  Please consult your Axos account statements for information about any securities affected by a corporate action.

Q14. If I currently invest some cash into the Axos Clearing Insured Deposits Program, what will happen to this cash upon conversion?
If you invest your available cash into Axos’ Clearing Insured Deposits Program, your funds will be redeemed from the Axos program and then transferred and deposited into the ETCB FDIC Insured Deposit Program. We encourage you to review the disclosures concerning this Program here.

The table below outlines the key differences between the two products.

Program Name Identifier Description Annual Percentage Yield (APY)
Axos Cash Sweep Program DLD Axos Clearing Insured Deposit Program 0.01%
ETCB Cash Sweep Program FDICT1SWP ETCB FDIC Insured Deposit Program 0.01%
Program Name Axos Cash Sweep Program ETCB Cash Sweep Program
Identifier DLD FDICT1SWP
Description Axos Clearing Insured Deposit Program ETCB FDIC Insured Deposit Program
Annual Percentage Yield (APY) 0.01% 0.01%
Q15. Will there be a blackout period for opening a new brokerage account?
Yes. The last date ETCB will open a new brokerage account is November 1, 2023. After this date, ETCB will not accept any brokerage account applications until after the conversion. Additionally, please note that only our new Brokerage Applications containing the new Account Owner Agreement and appropriate disclosures will be accepted. ETCB will not be able to accept any outdated versions of our applications after the conversion.

Additionally, please note that the last day to add options trading to your existing brokerage account is November 1, 2023. After this date, ETCB will not accept any options applications until after the conversion. Additionally, please note that only our new Options Agreement containing the new appropriate disclosures will be accepted. ETCB will not be able to accept any outdated versions of our forms after the conversion.

Q16. Will I be able to access historical Information?

No. You will need to refer to your historical Axos account statements or you can email [email protected] and make a specific request for historical information.

Q17. How can I view ETC Brokerage’s Privacy Notice?

Please click here to view ETC Brokerage’s Privacy Notice.

Q18. What do I need to know about account statements?
You will receive two account statements for the month in which your Axos account(s) are transferred to ETCB:

  1. One from Axos Clearing, displaying a zero balance along with any account activity details that took place prior to the transfer, as well as the movement of all securities, funds, and balances to ETCB; and
  2. Another from ETCB detailing any account activity that took place after the transfer, as well as the receipt of all securities and funds from your Axos account(s).

After the conversion, you will continue to receive your brokerage account statements no less frequently than quarterly.