All positions at Safeguard Securities require sufficient settled funds or approved margin before an order can be executed. This pre-trade compliance requirement protects both you and the integrity of the market.

REGULATORY REQUIREMENTS

Under SEC Rule 15c3-1 and FINRA regulations, broker-dealers must ensure that every trade is properly capitalized before execution. This means your account must have enough available buying power—either settled cash or approved margin capacity—to cover the full cost of your order, including any applicable commissions.

This requirement prevents failed settlements (known as “free riding”), which can result in account restrictions and regulatory penalties. By enforcing pre-trade funding checks, Safeguard Securities ensures seamless settlement and protects your account standing.

SETTLEMENT CYCLES

U.S. equities and ETFs settle on a T+1 basis (one business day after the trade date). If you sell a position and wish to use the proceeds for a new purchase, the funds from your sale will typically be available the following business day.

For margin-approved accounts, you may have additional buying power beyond your cash balance. To check your available buying power or request margin approval, visit the Account Settings section of your client portal or contact our trading desk.