About

Why Avenue?

We are an American online broker created for international investors and built to facilitate the access of our clients to a universe of investment possibilities.

Supported by a technologically advanced platform (with access to more than 3000 investment opportunities), our purpose is to introduce investors to the international markets.

Why Invest in the United States?

Every day your life is impacted a little bit more by overseas companies. The question is: Why not invest in a business that makes sense to you? Much more than just offering brokerage services, our mission is providing access internationally.

Avenue Securities LLC operates as broker and it is member of Financial Industry Regulatory Authority (FINRA). Avenue Securities LLC is not authorized by the Brazilian Securities and Exchange Commission (CMV) to offer securities distribution services to investors resident, domiciled or incorporated in the Federative Republic of Brazil. This page was not created for or directed to investors resident, domiciled or incorporated in the Federative Republic of Brazil and nothing should be understood as an offer of services directed to such investors.

Registration and Access

How do I Open an Account?

Our registration is 100% online. To open your account, simply click on "Open your account" on the homepage and follow the easy instructions.

Please be ready to provide a photo id (Driver's License, or an ID Card) and an updated proof of residency (last three months).

After completing your personal and professional information, your account will be validated in a few moments. If we cannot validate your information automatically, you will need to scan and upload the necessary documentation, this can be done immediately after completing your registration through our website.

What type of account will I have with Avenue Securities?

All accounts offered by Avenue Securities are Cash Accounts. In these accounts, leveraged transactions for the purchase of assets are not permitted. Purchase orders are allowed only when available cash to cover the cost of the purchase is in the account. Sell orders are allowed only when the securities to be sold are already in the account.

Joint Account (JTWROS) Vs. Individual Account

The joint accounts offered by Avenue Securities are Joint Tenants With Rights of Survivorship (JTWROS) - in which each party is entitled to equal parts of the account. Each party also has the right to "survival" - when a co-owner dies, all account assets pass to the other co-owner without going to the estate of the deceased.

In an individual account, the customer is the sole owner of the account. The owner is the only person authorized to control investments, deposits or withdrawals of money. In both cases (joint or individual account), deposits and withdrawals to/from your bank should be exclusively from a bank account with the same ownership.

What is the minimum amount needed to open an account on Avenue?

There is no minimum deposit required to open an account at Avenue Securities. Funds or securities will need to be in the account prior to submitting an order.

Please note that non-US residents, after opening an account and on the first transfer of funds in the account will be charged a one-time fee of US$2.00 to process the required W-8BEN form.

What is W8-BEN?

Form W8, issued by the IRS - Internal Revenue Service, is a Certificate of Foreign Status of Beneficial Owner. By filling out the form you confirm that you are not a taxpayer in the US (not a tax resident). Completion of the W8 form is required for all foreign investors.

This form will automatically be completed in according to the information submitted at the time of your registration and will be available for electronic signature along with your registration form.

Costs and Taxes

Is there a cost to open an account?

No. However, foreign residents at the time of the first deposit to their account, will be charged a one-time cost of US$2.00. This cost refers to processing of the W-8 Ben Form. This form is required for all non U.S. tax payers by U.S tax authorities.

What is the monthly maintenance cost?

The monthly maintenance fee is US$2.00. However, all accounts will be exempt from this fee until December 2019.

What are the transaction and commission costs?

The commission per transaction charged by Avenue for the orders executed through the online platform will be as follow:

Order total amount:

Up to US$2,000.00 will have a cost of US$5.00

Above US$2,000.00 will have a cost of US$10.00

**Execution of orders placed with a live representative over the phone will cost 0.5% of the value of the transaction or a minimum of US$ 20.00 per order. **

Income tax:

We offer general information and reports to assist with the declaration of investment income taxes.

Our main objective is to provide investors with practical and objective information on how to comply with the obligations related to investments held in the United States.

However, we always recommend that the client seeks the advice of a specialized and reliable professional to follow the required procedure of their country’s tax regulation.

Avenue Securities shall not be liable for any losses arising from misunderstandings in the calculation, collection and reporting of investments, income and capital gains earned abroad by the Investor.

This information is general in nature and not intended to be a substitute for specific individualized tax, legal or investment planning advice. Investors should inform themselves of and, when appropriate, consult a professional advisor concerning potential tax consequences associated with purchasing, buying, holding or disposing of Shares under the laws of their country of citizenship, residence, domicile or incorporation. Legislative, administrative or judicial changes may modify the tax consequences and as is the case with any investment, there can be no guarantee that the tax position or proposed tax position prevailing at the time an investment is made will endure indefinitely.

Products and Services

What assets can I invest with Avenue?

Avenue offers its clients access to more than 3000 securities traded on major US, NYSE and Nasdaq exchanges that include:

Stocks

ADRs (American Depositary Receipts)

REITs (Real Estate Investment Trust)

ETFs (Exchange Traded Fund)

The current criteria for inclusion of new assets are:

- US exchange listed (OTC securities are not available)

- Market capitalization greater than US$1 billion

- If market capitalization is below US$1 billion, then 3-month average daily dollar volume must be greater than US$0.5 million

- Exchange listed sponsored ADRs (American Depositary Receipts)

- Non-leveraged ETFs

- Share price greater than US$1*

What types of stock are available on Avenue?

All shares traded on the Avenue Securities platform are known as common shares, and there are currently no preferred shares as an investment option. Although all shares are of the same type, some companies may submit two or more different classes of shares with different voting rights for each category. The structure of more than one share class is common for companies that want to keep equity control in the hands of founders or specific executives.

What are REITs (Real Estate Investment Trust)?

A REIT (Real Estate Investment Trust) is an investment company that owns or finances real estate that generates income. REITs allow anyone to invest in large-scale real estate portfolios in the same way that they do with other sectors, that is, through the purchase of shares in the financial market.

Be sure to consider your own financial situation, perform thorough research and consult with a qualified tax professional before making any investment decisions concerning REITs. Investments in REITs and other real estate securities are subject to the same risks as direct investments in real estate. The real estate industry is particularly sensitive to economic downturns.

What are American Depositary Receipts (ADRs)?

ADRs (American Depositary Receipts) are certificates of deposit, issued and traded, bearing on securities issued by foreign companies. In the case of the US market, these assets are denominated as ADRs. These certificates of deposit permit the investment in foreign stocks without having to open an account in a brokerage firm in the country where the shares are traded and dealing with currencies operations other than the US dollar and transfer funds to another country besides the US.

American Depositary Receipts (ADRs) involve additional risks, which include differences in financial accounting standards, currency fluctuations, political instability, foreign taxes and regulations, and the potential for illiquid markets.

Investors should carefully consider information contained in the <b>prospectus</b>, including investment objectives, risks, charges, fees and expenses. ADR investors are subject to commissions and custody fees referred to as 'ADR pass-through fees' which vary by ADR. See the prospectus for specific information.

An ADR represents a certain amount of shares in a non-US company listed on a U.S. stock exchange or available in the Over The Counter market. ADRs can allow for geographical diversification, access and availability, cost effectiveness & flexibility.

ADRs in the American market enable you to invest in established companies even if they aren't based in the U.S. Avenue provides international clients access to over 2,100 established companies from over 80 countries listed in the U.S. These help you to diversify your portfolio across the globe even while focusing on the American market.

What are ETFs?

Exchange Traded Fund ETFs from various industries and countries are investment funds traded on the stock exchange, which may consist of several different assets (stocks, REITs, fixed income securities, commodities, options, currencies, swap, etc.).

Investors should consider the investment objectives, risks, and charges and expenses of a mutual fund or Exchange Traded Fund (“ETF”) carefully before investing. Before investing in any mutual fund or ETF, you should consider its investment objective, risks, charges and expenses. Contact us at cs@avenue.us for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully. ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund. Investment returns will fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth more or less than their original cost. ETFs are subject to risks similar to those of stocks. Some specialized exchange-traded funds can be subject to additional market risks. Leveraged and inverse exchange traded products are not designed for buy and hold investors or investors who do not intend to manage their investment on a daily basis. These products are for sophisticated investors who understand their risks (including the effect of daily compounding of leveraged investment results), and who intend to actively monitor and manage their investments on a daily basis.

Types of Orders

Limit Order - A limit order is an order to buy or sell a stock at a specific price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. A limit order is not guaranteed to execute. A limit order can only be filled if the stock’s market price reaches the limit price. While limit orders do not guarantee execution, they help ensure that an investor does not pay more than a pre-determined price for a stock.

Market Order – A market order is an order to buy or sell a security immediately. This type of order guarantees that the order will be executed, but does not guarantee the execution price. A market order generally will execute at or near the current bid (for a sell order) or ask (for a buy order) price. However, it is important for investors to remember that the last-traded price is not necessarily the price at which a market order will be executed.

Stop Order – A Stop Order is an order to buy or sell a stock once the price of the stock reaches the specified price, known as the stop price. When the stop price is reached, a stop order becomes a market order.

IMPORTANT - orders will not be accepted via chat nor via email. Orders must be executed through our online platform in the customer’s account. Or, if necessary, contact us through our service telephone numbers.

* Orders requested by phone will be subject to different charges – please read the Costs section for additional information

Fractional Shares Purchase:

With Avenue it is possible to purchase fraction of securities. For example, if a stock is priced at $ 1,000.00 you may request the purchase of US$ 300.00 worth of that stock. In this example your purchase will correspond to 0.30 shares.

It is important to understand that the trading of fractional shares has additional risks and limitations that you must understand before executing.

Cost: The execution of a fractional order (less than 1 share) will have the same execution cost of a regular order.

Adjustment of fractional shares: You can purchase and own in your account down to the nearest four decimal places. This may affect your purchase of a fixed dollar amount order. For example, if you order $100 worth of a security, your transaction may not total exactly $100 of a share. Your transaction may not total exactly $ 100 because of rounding (it could be a penny less, but would never be more than the order amount, prior to commission charges).

Rounding may also affect your ability to be credited for cash dividends, stock dividends and stock splits. For example, if you own .0001 of a share of stock that pays a one cent dividend per share, we will not credit your cash balance a fraction of a cent.

Avenue will only accept market orders for fractional shares. Orders entered outside normal trading hours cannot be executed.

Transfer of Fractional Shares: Fractional shares are not transferrable. If you close your account or transfer your account to another company, the fractional share will need to be liquidated, resulting in potential commission charges. Fractional shares cannot be put into certificate form and mailed. They will need to be sold. The commission charge for liquidation may match the value of the fractional share if less than our minimum commission.

Voting Rights: The fractional share holders will not be entitled to vote for the fraction of a share held, even if you have more than 0.50 shares in your account.

What are the rules that involve cash account settlements?

Prior to placing an order there must be sufficient funds in the account to pay in full for the purchase.

Avenue’s customers can only invest with settled funds on the day the order is executed.

Short sales are not allowed through Avenue.

Asset settlement flow:

The settlement date for both purchases and sales of assets is two (2) business days after the trade date, usually referred to as T + 2.

What is a Good Faith Violation?

If a security purchased in your cash account is sold prior to being paid for with settled funds in the account, a good faith violation has occurred. The reason it is referred to as a good faith violation is that trade activity is giving the appearance that sales proceeds are being used to cover buy orders when there is insufficient settled cash to cover these purchases. Basically, trade activity indicates that a good faith effort to deposit additional cash into the account will not happen.

IMPORTANT! Accounts with three good faith violations in a 12-month period must be restricted to purchasing securities with settled cash only for a period of 12 months.

Good faith violation example 1:

Cash available to trade = $0.00

On Monday morning, a customer sells Y stock netting $5,000 in cash account proceeds.

On Monday afternoon, the customer buys X stock for $5,000.

If the X stock is sold prior to Wednesday (settlement date of the Y sale), a good faith violation would be charged as the X stock is not considered fully paid for prior to sale.

Good faith violation example 2:

Settled cash = $5,000

On Monday morning, a purchase is made for $5,000 of X stock.

On Monday mid-day, the customer sells the X stock for $5,500.

Near market close, the customer purchases $5,500 of Y stock.

At this point no good faith violation has occurred because the customer had sufficient funds for the purchase of X.

If Y is sold prior to being paid for (settlement) then a good faith violation will have occurred.

Good faith violation example 3:

Cash available to trade = $10,000 minus cash credit from unsettled activity = $5,000 (proceeds from a sale of stock the prior Friday – trade settles on Tuesday)

On Monday morning, customer purchases $15,000 of Y stock.

A good faith violation occurs if this customer sells the Y stock on Monday.

The purchase is not considered fully paid for because the $5,000 proceeds are not considered sufficient funds until they are settled on Tuesday.

Why do I have less cash available for withdrawal than my cash balance?

If you have recently sold any of your positions, it will take 2 business days for the funds to be settled before they become available for withdrawal. This is related to the T (transaction) + 2-day settlement process of the Securities and Exchange Commission (SEC).

Two business days after the trade date, the total cash value in your account will be available for withdrawal.

Avenue’s Customer Service

Hours and service channels:

Our service is available Monday through Friday from 8:00 AM to 5:00 PM (EST time) through chat, phone and email. Our service follows the standard calendar of US national holidays, always available on stock exchange trading days (NYSE and NASDAQ).

Will I have some support when it comes to investing?

We offer a wide selection of content aimed at investors who want to know more about investmenting abroad. You can access it through our website and on our social networks. Avenue does not provide investment advice to its clients, but we are always available to provide all the necessary support to carry out your orders

What are the trading hours and US market holidays?

NYSE/NASDAQ Market trading hours: Monday through Friday from 9:30 am to 4:00 pm New York (EST time)

Avenue does not offer After Hours (Post Market) trading

2019 NYSE/NASDAQ - U.S. Equity and Options Markets Holiday Schedule (closed market):

January 1, 2019 - New Year's Day (Observed)

January 21, 2019 - Martin Luther King, Jr. Day

February 18, 2019 - President's Day - U.S.

April 19, 2019 - Good Friday

May 27, 2019 - Memorial Day - U.S.

July 4, 2019 - Independence Day - U.S.*

September 2, 2019 - Labor Day - U.S.

November 28, 2019 - Thanksgiving Day - U.S.**

December 25, 2019 - Christmas Day***

* The market will close early at 1:00 pm on Wednesday, July 3, 2019. Shares of NYSE American Equities, NYSE Arca Equities and NYSE National will close at 5:00 pm on Wednesday, July 3, 2019. New York (EST time).

** Market will close early at 1:00 pm. On Friday, November 29, 2019 (the day after Thanksgiving). Shares of NYSE American Equities, NYSE Arca Equities and NYSE National will close at 5:00 pm. New York (EST time).

*** Market will close early at 1:00 pm on Tuesday, December 24, 2019. Shares of NYSE American Equities, NYSE Arca Equities and NYSE National will close at 5:00 pm. New York (EST time).

Asset Protection

How do I retrieve my login information for my Avenue account?

If you have started your registration and do not remember your password, you can click on "forgot password" submit your e-mail and you will receive via SMS to your registered mobile phone a token that will enable the setting of a new password.

Registration of Stocks in the United States - What is Street Name?

This is a term used when securities of a client are held under the broker or clearing firm’s name, rather than the name of the individual who is the legal owner of a security.

Although the name on a certificate is not that of the individual, it is still listed as the actual owner and beneficiary and has the rights associated with the asset.

In almost all cases, when you buy or sell securities at an American brokerage firm, your name is not actually in the stock certificate or securities. The name that appears on the certificate is the name of the brokerage or clearing firm, and this is called in the US as "street name".

In this way, whenever a customer needs to buy or sell shares, the brokerage firm is readily able to allocate a portion of its stock as needed.

Why are the securities held by the brokers in "Street Name"?

Avenue Securities is a fully disclosed introducing broker to its clearing firm DriveWealth. Avenue Securities does not hold any of its clients assets or cash. Investors who open an account at Avenue Securities will be holding their funds and assets at DriveWealth.

Brokerage or clearing firms usually hold street name titles because of the complexity of tracking each share certificate for each individual. Almost all brokers or clearing firms hold securities electronically, not possessing the physical certificates.

The custody of individual titles in street name is done for several reasons, we highlight the two main reasons:

Convenience: It is much more convenient for brokerage or clearing firms to carry securities on their behalf, as securities can be easily transferred between the parties. Imagine the additional amount of work that would occur if the actions were individually on behalf of each client. Whenever the client had to sell shares, the broker would have to find the exact actions that the broker possesses and give them to the buyer, who would then have to send the shares back to the company so that the name in the certificates could be changed to the new name of the owners. By maintaining the titles on street name, the broker can avoid most delays associated with the transfer of ownership and quickly settle the negotiations.

Security: If the brokerage houses had physical security certificates, there would be a greater risk of physical damage, loss and theft. By keeping them on street name, brokerages are able to hold the bonds electronically, effectively reducing the likelihood of anything negative happening. This security is also extended to secure payment. By maintaining the titles on street name, the brokerage firm is ensuring that a security will be delivered immediately when a transaction occurs. This eliminates any uncertainty that would exist if the customer were responsible for delivering security every time a transaction occurred.

What happens if the brokerage firm fails or closes?

Often, when a brokerage firm ceases to operate, the assets of the clients are transferred in an orderly manner to another registered brokerage firm. Multiple layers of protection are designed to protect investor assets. For example, registered brokerages or clearing firms keep their clients’securities and money separate from their own so that even if a company fails, the clients' assets are safe. Brokers are also required to meet minimum net capital requirements to reduce the likelihood of insolvency and to be a member of the Securities Investor Protection Corporation (SIPC), which protects client securities accounts of up to $ 500,000 being the maximum $ 250,000 in cash.

SIPC

SIPC is a non-profit organization created in 1970 under the Securities Investor Protection Act (SIPA) that provides limited coverage to investors’brokerage accounts if its brokerage becomes insolvent. All brokerages that do business with the investing public should be members of SIPC. SIPC protection is limited. It covers the replacement of defaulted shares and other securities up to (maximum) $ 500,000, with a maximum of $ 250,000 in cash. However, it only does so when a business is deactivated because of financial circumstances in which the customer's assets are absent - due to theft, conversion or unauthorized trading - or are at risk because of the company's failure.

Avenue Securities is a member of the Securities Investor Protection Corporation (SIPC), which protects customers up to $ 500,000 (maximum of $ 250,000 in cash). More information is available upon request at www.sipc.com

Member FINRA

Avenue is a member of FINRA. Avenue's background can be found at FINRA's BrokerCheck.