Account Types
  • 1. Cash Account

    A cash account is the most basic type of account. It does not support margin operations. It follows the T+3 clearing system. Day trades are also limited. After an order is executed, the funds are usually not immediately available for trading since it has to follow the T+3 system. Therefore, a cash account usually cannot operate T+0 trades.

  • 2. Limited Margin Account

    A limited margin account cannot utilize margin for trading, but trades follow the T+0 clearing system. Once the total value of the account exceeds $2,000 the limitation on the margin account is lifted, and the account can utilize margin for trading. To raise the total value of a margin account above $2,000, the owner can either deposit additional funds or reinvest the profits from trades.

  • 3. Margin Account

    A margin account can utilize margin to trade securities, as long as the total value of the account is above $2,000. A margin account can also utilize margin to short stocks.

    If a Margin Account's net value is greater than $2,000, but below $25,000, TradeUP will limit the account's T+0 trades to 3 trades within 5 consecutive trading days. If the account operates a 4th T+0 trade, the account will be suspended from all trading for 90 trading days.

    Once the account value returns to $25,000 or more, the account can start T+0 trades with no limitation.

    Note:

    TradeUP recognizes all open accounts as margin accounts, unless the account owner does not meet the age requirements. Regulations require that investors between 18 and 21 cannot open margin accounts.