Investment club account

An investment club account operates like a standard joint account, but it allows for more than three holders. This group of holders are able to pool their money to make investments. Investment club accounts are typically organized as partnerships, wherein the group decides to buy or sell based on a majority vote by its members. People open club accounts for a variety of reasons, such as to learn to trade by relying on the other traders’ knowledge and experience, or to take advantage of the additional buying power that comes with multiple investors.

Is there a limit as to how many people can be in our club?

No. You can have as many people in your investment club as you would like. Each individual is required to sign some documentation to participate.

What can we trade?

Short answer: everything. In a margin account, your club can trade stocks (including OTC penny stocks), options (standard and mini lots), ETFs, mutual funds, bonds, exempt market products, and physical gold.

Forex and CFD trading is available in your club’s FX and CFD account.

Is an agreement required for an investment club?

Yes. Every member of your club must sign an agreement with the brokerage as well as an investment club trading authorization form. Additional documents may be required depending on the number of members in your club.

What is the easiest way to build the club’s investment?

When you’re investing as a group, there is a benefit to automating new cash contributions. There are a number of ways to help you build your club account, including PACCs (pre-authorized cash contribution), automatic deposits, and dividend re-investment plans (DRIPs – only available in margin/equities accounts).