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Three-Level Broker Accounts

Fully Disclosed Brokers can add the following types of institution accounts to their account structure:

• Advisor
• Proprietary Trading Group Separate Trading Limit (STL)
• Multiple Hedge Fund

These institution accounts can have their own client, sub or fund accounts, making your account structure a three-level account.

For detailed rules governing three-level Fully Disclosed Broker accounts, see Rules for Three-Level Fully Disclosed Broker Accounts in the Account Management Users' Guide.

Adding an Advisor Account

To add an Advisor to your Fully Disclosed Broker account

1. Click Manage Clients > Create and Link Accounts > Create > New. 
2. Click Client Invitation to send an invitation to initiate a fully electronic application process. Currently, only fully electronic applications are available for adding an advisor to a Fully Disclosed Broker account.
3. The client begins his or her application by selecting Financial Advisor as the account type, and then completes an Advisor Account application. Financial and trading criteria are applied separately at the advisor and advisor client levels.

4. After the advisor application has been approved, the advisor can log into Account Management with his own username and password, and then add one or more client accounts on the Manage Clients > Create and Link Accounts > Create > New page. Fully Disclosed Brokers cannot add client accounts to the Advisor account; these must be added by the advisor.

As a Fully Disclosed Broker, your trading qualifications (products you are qualified to trade) determine the trading qualifications that are available to the new advisor and the advisor's clients.

Adding an STL Account

To add an STL account to your Fully Disclosed Broker account

1. Click Manage Clients > Create and Link Accounts > Create > New. 
2. Click Client Invitation to send an invitation to initiate a fully electronic application process. Currently, only fully electronic applications are available for adding a Proprietary Trading Group STL account to a Fully Disclosed Broker account.
3. The client begins his or her application by selecting Institution as the account type, and then completes an account application. This client will be the Proprietary Trading Group STL Master user.

4. After the application has been approved, the new client can log into Account Management with his own username and password, and then add sub accounts from the Manage Traders > Traders > Create > Authorized Trader page. Fully Disclosed Brokers cannot add sub accounts to the STL account.

The STL and its sub accounts belong to the same beneficiary.

Adding a Multiple Hedge Fund Account

To add a Multiple Hedge Fund account to your Fully Disclosed Broker account

1. Click Manage Clients > Create and Link Accounts > Create > New. 
2. Click Client Invitation to send an invitation to initiate a fully electronic application process. Currently, only fully electronic applications are available for adding an advisor to a Fully Disclosed Broker account.
3. The intended Fund Investment Manager begins his or her application by selecting Multiple Funds as the account type, and then completes an account application. Financial and trading criteria are applied separately at the Fund Investment Manager and fund levels.

4. After the multiple hedge fund application has been approved, the Fund Investment Manager can log into Account Management with his own username and password, and then add one or more fund or SMA accounts on the Manage Funds > Funds > Create > New page. Fully Disclosed Brokers cannot add fund or SMA accounts to the Multiple Funds account; these must be added by the Fund Investment Manager.

For more information

• For additional information about three-level broker accounts, see the Account Management Users’ Guide.