In rare cases, stocks can be subject to settlement fees if they are non-DTC-eligible securities. Usually these are stocks listed on the OTC market or foreign, with a 5-letter symbol ending in "F".
The Depository Trust Company (DTC) provides clearing, settlement and information services for certain securities. Certain securities are not DTC-eligible or have had their eligibility revoked. As a result, the settlement of these physical positions can carry significant pass-through charges for our clearing firm, Apex Clearing Corp, including execution fees, DTC fees, deposit fees, New York window fees, and transfer agent fees. These fees, which can vary and may be substantial, increase the cost that Apex Clearing Corp passes through for clearing and execution.
Customers who trade penny stocks and non-DTC-eligible securities are responsible for these charges, which can be as high as 10 times the value of the trade. Orders that require executions with multiple contra-parties will result in settlement fees for each separate transaction. Neither All of Us nor Apex Clearing Corp mark up any of these fees before they are passed through to customers. These pass-through charges may not be immediately charged to a customer account following a trade in non-DTC-eligible securities, as our clearing firm may receive notice of such fees several weeks following the trade. We reserve the right to withhold funds in a customer account pending potential assessment of fees associated with trading in penny stocks. It is your responsibility to investigate the eligibility status of an equity before trading it. We recommend that you contact the specific company whose equity you intend to trade to confirm eligibility.