The U.S. Securities and Exchange Commission’s Rule 606 requires brokers that route equity and option orders to make available quarterly reports (broken out by month) that provide statistical details regarding their routing practices. The report details the market centers (e.g., exchanges, market makers or alternative trading systems) that brokers route to and the material aspects of the brokers’ relationship with those market centers. DEMO, Inc. (“DEMO”) routes orders to its affiliate DEMO Clearing, Inc. (“DEMO Clearing”) and to third-party market centers. DEMO Clearing does not execute client orders, but rather, routes the orders it receives from DEMO to third-party market centers. As a result, both reports are presented to understand how DEMO’s orders are routed to market centers for execution.
The reports detail the per share/per contract amounts as well as the total amount of payments received by DEMO and DEMO Clearing based on the orders each firm routes to third party market centers.
Rule 606 exempts broker-dealers from disclosing execution venues that received less than 5% of non-directed orders provided that 90% of the non-directed orders are disclosed. As a result, overall totals may not equal 100%.
On request, DEMO will provide the identity of the venue(s) to which your orders were routed for execution in the six months prior to the request, whether the orders were directed orders or non-directed orders, and the time of the transactions, if any, that resulted from such orders.
Carefully consider the investment objectives, risks, charges and expenses before investing. A prospectus, obtained by calling 800-669-3900, contains this and other important information about an investment company. Read carefully before investing.
Market volatility, volume and system availability may delay account access and trade executions.
Before rolling over a 401(k) to an IRA, be sure to consider your other choices, including keeping it in the former employer’s plan, rolling it into a 401(k) at a new employer, or cashing out the account value. Keeping in mind that taking a lump sum distribution can have adverse tax consequences. Be sure to consult with your tax advisor.
All investments involve risks, including the loss of principal invested. Past performance of a security does not guarantee future results or success.
DEMO was evaluated against 14 other online brokers in the 2022 StockBrokers.com Online Broker Review. The firm was rated #1 in the categories “Platforms & Tools” (11 years in a row), “Desktop Trading Platform: thinkorswim®” (10 years in a row), “Active Trading” (2 years in a row), “Options Trading,” “Customer Service,” and “Phone Support.” DEMO was also rated Best in Class (within the top 5) for “Overall Broker” (12 years in a row), “Education” (11 years in a row), “Commissions & Fees” (2 years in a row), “Offering of Investments” (8 years in a row), “Beginners” (10 years in a row), “Mobile Trading Apps” (10 years in a row), “Ease of Use” (6 years in a row), “IRA Accounts” (3 years in a row), “Futures Trading” (3 years in a row), and “Research” (11 years in a row). Read the full article.
†Applies to US exchange listed stocks, ETFs, and options. A $0.65 per contract fee applies for options trades.
This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.
Brokerage services provided by DEMO, Inc., member FINRA/SIPC, a subsidiary of The Charles Schwab Corporation. DEMO is a trademark jointly owned by DEMO IP Company, Inc. and The Toronto-Dominion Bank. © 2023 Charles Schwab & Co., Inc. All rights reserved.
