Exceptional Account Protection

Invest with peace of mind knowing that your Firstrade account is protected up to $150 million.

Your personal goals and financial objectives are critical factors in determining how your portfolio should be invested. Of equal importance is the assurance that the assets in your account are properly safeguarded. You can take comfort in knowing that we offer one of the highest level of coverage available in the financial services industry.

Your clearing firm Penson Financial Services, Inc. has purchased an additional insurance policy through a group of London Underwriters (with Lloyd's of London Syndicates as the Lead Underwriter) to supplement SIPC protection. This additional insurance policy becomes available to customers in the event that SIPC limits are exhausted and provides protection for securities and cash up to an aggregate of $600 million. This is provided to pay amounts in addition to those returned in a SIPC liquidation. This additional insurance policy is limited to a combined return to any customer from a Trustee, SIPC and London Underwriters of $150 million, including cash of up to $2 million. This coverage does not protect against loss of the market value of securities.

Banking features with check-writing privileges are provided to all Firstrade Smart Account customers. The first box of wallet style checks (25 checks) is provided at no additional cost to you. You can enjoy unlimited check writing with no minimum dollar amount requirement. Expense code monitoring is also available with twenty-two (22) pre-defined categories. Your monthly consolidated statement will include details such as the payee, amount, and expense code category. Check writing details for the calendar year are also provided on the year-end statement for your convenience. Direct Deposit is also available for payroll and Social Security benefit payments.

About SIPC

SIPC was created in 1970 as a non-profit, non-government, membership organization, funded by member broker/dealers. Its primary role is to return funds and securities to customers if the broker/dealers holding their assets become insolvent.

It is important to understand that SIPC and "Excess SIPC" protect customer accounts against losses caused by the financial failure of the broker-dealer, but not against an increase or decrease in the market value of securities in customers' accounts. SIPC does not protect against market risk, which is the risk inherent in a fluctuating market.

SIPC protects most types of securities, such as notes, stocks, bonds, mutual funds and other investment company shares, and other registered securities. It does not cover instruments such as unregistered investment contracts, unregistered limited partnerships, and interests in gold, silver, or other commodity contracts or commodity options.

*Member of SIPC. Securities in your account protected up to $500,000. For details, please see www.sipc.org.