AutoTrading Risk Information

Q: What is AutoTrading?

A: AutoTrading is an arrangement where you request AutoShares to accept trade alerts published by third party publications you subscribe to. Under the AutoTrade program, you give AutoShares the authority to enter and exit trades based on the publications trade alerts according to pre-determined instructions and parameters you set for your self-directed online brokerage account. This enhances your ability to execute trade alerts efficiently, even if you are unable to keep in touch with current market conditions.

Q: Are there special risks associated with AutoTrading?

A: While there are risks associated with all investments and investment programs, there are special risks associated with AutoTrading. You should both be familiar with those risks and willing to accept them before you direct us to accept trading instructions from a Newsletter publisher. For example, AutoTrading frequently involves short-term trading of stocks and options that are based on short-term fluctuations in the overall market, particular industries, or particular issuers. There can be no assurances that such trading will be profitable. And because you will be charged a commission on each transaction effected for your account, the costs associated with frequent short-term trading can become significant. Similarly, there are risks associated with engaging in AutoTrading using margin. You should not engage in AutoTrading unless you are willing to accept the inherent risks, which may include the loss of all the funds you have invested.

Q: What are the Risks and Terms for Service for AutoTrade Execution?

Before making a decision to engage in Auto Trading you should perform the due diligence necessary to ensure that the concept of AutoTrading is compatible with your investment strategy. 

AutoShares will not review, in any manner, your choice of any publisher, newsletter, or any investment strategy you implement for your autotrading account. Before getting started with Autotrading, remember there is no “safe” or “guaranteed” trading strategy.

No current or prospective user should assume that the future performance of any specific investment, investment strategy (including the investments trading methodologies/systems discussed on the Site) or any other Site content will be suitable or profitable for a user’s portfolio, equal historical or anticipated performance level(s), or prove to be correct.

Autotrading users do not receive investment advisory, investment supervisory or investment management services, nor the initial or ongoing review or monitoring of the user’s individual investment portfolio or individual particular needs. Therefore, no user should assume that his/her/its use of Publishers or Trade Alert Services serves as a substitute for individual personalized advice from an investment professional of the user’s choosing.

It is the user’s exclusive responsibility to determine if any portion of the investment-related information and trading methodologies/system on this site or on any third party site, if any, is suitable or appropriate for his/her financial situation and/or investment objectives, both initially and on an ongoing basis.

It is solely the customer’s responsibility to review the financial newsletter publisher’s experience, credentials, and performance and determine if the strategy is in line with your investment or trading objectives. AutoShares does not review these factors, and does not rate, rank, or endorse any financial newsletter or publisher. Inclusion of or listing of a financial newsletter in the AutoShares AutoTrade program does not constitute a recommendation or an endorsement of any kind.You are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional before you make any investment or trade. None of the information contained in newsletter publications trade alerts, is intended to constitute a recommendation by us of any particular security or trading strategy or a determination by us that any security or trading strategy is suitable for any specific person or investment objective.

Any transactions you set for autotrade execution based off of a Trade Alert, Publication, or Third Party Opinion is solely at your discretion. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a user or prospective user’s investment portfolio. Trading in any security can result in immediate and substantial losses or entire loss of the amount invested.

Newsletters Publishers are Independent and Non Affiliated. 

You should not consider a newsletter publication as a substitute for a financial advisor or financial advice.

You should carefully assess your participation in Autotrading based off of any trade alert before you make a trade based on any opinion or recommendation in a financial newsletter publishers publications or trade alert services.

A publisher may or may not registered as investment advisor under the Investment Advisor Act of 1940. Inclusion in the Autotrade program does not imply that a newsletter publisher is or is not required to be so registered. AutoShares does not require that a newsletter publisher is registered.

AutoShares is an online brokerage firm offering trade automation and trade execution services to self-directed investors. Newsletter Publishers are separate and independent third parties and not affiliated with AutoShares Brokerage. AutoShares does not have any ownership in any publisher.

AutoShares acts only upon specific instructions and in an executing broker capacity.

AutoShares does not exercise any discretion over customers' accounts. Customers are responsible for evaluating any recommendations, advice, instructions and other information and for understanding all such information, including the underlying trading strategies, risks and obligations (including capital requirements) associated with the information and are responsible to set the automation settings in their self-directed AutoShares Online Brokerage Accounts. Participation in autotrading relies on instructions and parameters set by customers for automated trading.

AutoTrade customers must consent to the terms of AutoShares AutoTrade Agreement and must provide accurate information and instructions. 

It is the customer’s responsibility to review and immediately notify AutoShares in the event that the customer’s personal and/or financial information changes. It is the customer’s responsibility to monitor and review all trade activity, including updating and maintaining accurate information and instructions on file.

AutoTrade is only offered to accounts that have designated their investment objective as “Speculation” and you accept, and are requesting that your account investment objective be updated to “Speculation”.  

AutoTrade accounts are subject to additional risks, including but not limited to, those listed above and in the AutoShares AutoTrade Authorization.

Options involve risk and are not suitable for all investors. 

The customer understands that there are special risks associated with engaging in options transactions and that options can be volatile and could possibly subject the customer to a risk of total loss. The customer understands and acknowledges that options are suitable only for knowledgeable investors who understand the risks inherent in such securities, have the financial capacity and willingness to incur losses, and have sufficient liquid assets to meet applicable margin requirements. Please read Characteristics and Risks of Standardized Options before investing in options. Options trading privileges are subject to AutoShares review and approval. Not all account applicants will qualify. Execution price, speed, and liquidity are affected by many factors, including system performance, market volatility, size and type of order and available market centers. 

For more information, please Contact Us. 


AutoShares recomends you read the following SEC release concerning the risks of AutoTrading.