Support and resources

Folionet is a US broker that offers individuals worldwide the ability to open an investment account in the US. Specifically, our mission is to give Latin Americans easy access to the largest stock market in the world. As a US financial institution, Folionet is regulated by FINRA and the SEC, and accounts are protected by the SIPC.

Folionet’s main income is received from cash balances and debit balances. Cash balances are funds not invested in the account and debit balances are funds we provide to clients for margin operations. Also, for clients seeking personalized service and advice, Folionet Private Wealth Management offers estate management services, and therefore charges commissions and fees for those transactions (for more information visit /).

In addition, another income comes from the payment of the markets for the flow of trades that are made in the app. Also, every executed trade has a $0.98 transaction fee.

See Folionet Rates for additional information.

Folionet is a service mark by Folionet Private Wealth Management, which is a registered and regulated broker of FINRA and SEC in the United States and is registered in the SIPC. Because Folionet is a mark and is in the United States, it is bound by the same entities that regulate Folionet Private Wealth Management. This means that both Folionet Private Wealth Management and Folionet clients have investment and capital security.

If you would like more information, we attach the links of our regulatory entities:

FINRA: https://brokercheck.finra.org/
SEC: https://sec.report/CIK/0001674055
SIPC: https://www.sipc.org/list-of-members/F

Folionet offers two types of accounts, each designed to suit your investment needs. Both of them allow you to trade with only a $0.98 processing fee.

Investing on margin means that you are borrowing money from Folionet to buy stocks. This lets you invest more money (your own money plus borrowed money) for greater potential of gains or losses. It also gives you flexibility with your cash: If you see an opportunity in the market and you want to invest more, you can invest right away without needing to make a deposit from your bank.

When you open a Folionet margin account, you will receive extra buying power. This represents the money that you can borrow from us to invest.

What are the risks of margin?
‍
With margin investing, the returns on any stocks bought on margin directly affect your account value, whatever they are positive or negative. If the stock loses value, the losses will be deducted from your account value – not the funds you borrowed – so it is possible for margin to increase your losses. The risks are resumed as follows:

Interest Rates: they may vary in time (can go up or down). In case of a rise, the cost of the loan may go up in price.
Stock Movement: if the shares in your portfolio substantially decrease in value, an alert can be triggered representing a margin call. You may need to sell positions to reduce the loan value.

What are the requirements to use margin in your account?

Federal regulators require that you have $2,000 in your account and a suitable investment profile to use margin. Suitability is determined by asking you a few questions about your experience, risk profile, among others.You can enable margin by contacting our support team support@folionet.com

How do I pay for margin lending?

‍Margin accounts do not have fees. You only pay interest if you have invested all your cash and are therefore using margin lending. The charges for using margin lending will be deducted from your account monthly. The interest rate you will pay is indicated on this website and it’s prorated based on the number of days that margin funds are used.

For example, if you use $1,000 of margin and the interest rate is 9%, the daily interest will be calculated as follows: 1000*9%/360= $0,25 daily.

How do I know when I am using margin?

You will start using margin once the cash in your account has been fully invested. This means that if you have upgraded to a margin account and you have cash in your account, you will not start using margin right away.

For example, suppose that you have $2,500 in your account – $2,000 in stocks and $500 cash. If you buy an additional $1,000 of XYZ stock, you will use your $500 in remaining cash and the remaining $500 would be on margin.

Once you buy your first shares on margin, we will update your account display to show the amount of margin you are using. You will see a negative amount in the cash field. This will represent the borrowed amount.

How do I stop using margin?

‍There are two ways to stop using margin:

1. First, you can deposit money into your account to reduce the margin you are borrowing. Using the previous example, you could stop using margin by depositing $500 in the account.
2. Second, you can sell shares to reduce the amount of money you are borrowing. Using the previous example, you could sell $500 worth of shares and apply the cash to reduce your margin to zero. You can sell any position in your account since margin is a feature for your entire account.

When you open a Folionet cash account, you will be able to place trades for only a $0.98 processing fee. You will not have access to the funds instantly when selling. Due to US regulation, funds will become available to use again after 48 business hours.

Open a minor account to access a portfolio designed for minors, aligned with the goal and time horizon defined by our advisors. The authorized representative can view the account at any time.

What are the costs?
‍
‍The annual advisory fee is 1% of the portfolio’s value, charged quarterly (0.25% per quarter).

Example: An account valued at $5,000 pays $50 per year (1%), collected in quarterly installments of $12.50.

How do I open the account?
‍
If you already have a Folionet account, log in and select the Minor Accounts option from the app or Web platform. (Certain jurisdictions not available.)If the minor has an ID document, you can upload it during registration. Approvals typically take 24–48 business hours.

Who manages the account?

Our advisors manage the account under a discretionary mandate: we build and manage a diversified portfolio tailored to the minor’s objective and time horizon. The authorized representative has full view access at all times and approves deposits and withdrawals.

‍Does the minor pay taxes? Who files them?

The legal representative is the account holder for tax purposes and is responsible for reporting taxes. Tax requirements vary by country, so please consult a qualified tax professional.

What happens when the minor reaches legal age?
‍When the minor reaches the legal age, they can open an investment account in their own name and transfer the portfolio at no cost.

‍How are my assets protected?

Folionet is a brand of Santos Capital Group, a broker-dealer based in Miami, Florida, founded in 2014. We are members of the Securities Investor Protection Corporation (SIPC), which protects customers up to $500,000 (including up to $250,000 for cash). For more information, visit sipc.org. Please also visit FINRA BrokerCheck for additional information about our firm.

‍Can I have more than one minor per representative, or more than one representative per minor?

A single representative can have accounts for more than one minor. However, a minor’s account cannot have more than one representative.

Can I change the portfolio?

Portfolios are designed by our advisors based on the minor’s objectives and time horizon. Changes are not available until the minor reaches the legal age.

To open your Folionet account you will have to complete the following steps:

1. Submit an application in your Folionet App.
2. You will receive an email in 24 hours either confirming your application’s been approved or asking for more information.
3. You are ready to deposit funds and start trading with Folionet.

Note: Folionet requests personal information, including financial and tax identification information, in order to comply with U.S government laws and FINRA rules.

At Folionet you can invest in over 10,000 stocks, including most U.S equities and exchange traded funds (ETFs) listed on U.S exchanges. Begin with as low as $5 through fractional shares.

‍Folionet currently supports the following assets:

Note: A low-priced stock or a Penny Stock, refers to a stock issued by a company that is valued at less than $5 per share and trades in an OTC market except Nasdaq.We at Folionet have restricted the purchase of shares from companies that are listed on the OTC market and have a market capitalization of less than $400M. This is a protective measure for clients, based on the excessive risk that is often associated with buying Penny Stocks.

To apply for a Folionet account, you will need to meet the following requirements

Note:

Laws and regulations, administered by the OFAC sanctions list and the FAFT-Identified Jurisdictions with AML/CFT Deficiencies list impose restrictions on the account opening for individuals and entities located in sanctioned jurisdictions, including Cuba, Panama, Iran, Syria, North Korea, and the Crimea region of Ukraine.

Folionet App is currently available on iOS and Android.

‍iOS
‍Folionet is available for iPhone and iPad on the App Store. We support all iOS devices running iOS 11 and newer.

‍Android
‍Folionet is available for Android on the Google play Store. We support all Android devices running 6.0 Marshmallow and newer.

Download the Folionet App and keep in touch with updates of our services. Checking accounts will soon be available worldwide.

Folionet is required to update costumers with important account information and documents, that way we can make sure that you are up to date with important account information.

We provide the opportunity to list a Trusted Contact, a person that you authorize to contact in limited circumstances, such as if your contact information becomes out of date or if you become incapacitated or in the event of your death.

‍Setting Your Trusted Contact

‍At the time of registration, you can choose the option to add a Trusted Contact, you will have to provide the following information:

-First and Last Name.
-Phone Number.
-Address

This information is precautionary, and you can change your Trusted Contact anytime by contacting our support team.

If you have forgotten your password, tap the Reset Password button on the login page to send a password reset email to your email address. If you do not see this email in your inbox, please check your spam folder.

When you are logging into your account or updating sensitive information, we may ask you for additional information via email just to confirm it is you.

If you ever feel your account security has been compromised or notice any unusual activity, please contact us at support@folionet.com.

For non-US citizens, foreign individuals must file their country of residence for tax purposes and certify that they qualify for a low rate of tax withholding.

Depending on your country of residence, Folionet provides a document with all the required information for you to declare taxes in your country. This is at your disposal, and it is your responsibility to comply with the tax commitments of your country of residency.

Selling in short is like buying and selling shares, but in the opposite way.You will sell a stock you do not own expecting to buy it back later at a lower price, and the difference is your profit.Short Selling requires a margin account with an account value of at least $2,000.To make the order you will have to:

A dividend is a corporate action that consists in shares or cash payment to stockholders. They are subject to approval by the company’s board of directors and is a distribution of the company’s profits to a specific class of shareholders.

Dividends are deposited in cash, and you can find it in your monthly statements though our mobile app.

Our custodian, Apex Clearing LLC, processes your dividends automatically. Cash dividends will be credited to you as cash in your account by default.

The dividend payment often results in withholding from the IRS. The withholding tax rate in effect usually depends on both your residence and the company’s base.

‍*It’s possible to activate automatic reinvestment of dividends.

A corporate action is an activity that brings substantial changes to an organization, affecting its participants, including bondholders, as well as shareholders, both preferential and common.

These shares are generally approved by the company’s board of directors, in some cases, shareholders may also be allowed to vote.

Dividends
‍
A stock dividend is a dividend payment to shareholders, it can be in cash or shares. They are subject to approval by the company’s board of directors and is a distribution of the company’s profits to a specific class of shareholders.
‍
‍Stock Split
‍
A Stock Split is a common corporate action that modifies a company’s existing shares. In a share split, the number of shares outstanding increases by a specified multiple, decreasing the nominal value of the shares. The market value of the total number of shares remains the same.
‍
‍Reverse Split
‍
A Reverse Split is a common corporate action that modifies a company’s existing shares. In a regroup, the number of shares outstanding is decreased by a specific multiple, increasing the nominal value of the shares. The market value of the total number of shares remains the same.

‍Merge and Acquisitions
‍
Mergers and acquisitions are other corporate actions that cause major changes to companies. In a merger two or more companies come together to form a new company. Existing shareholders of the merged companies retain a shared stake in the new company. Unlike the merger, the acquisition is a transaction in which one company, the acquirer, takes over another company. The object company ceases to exist, and the acquirer assumes the business being subject to it. The securities of the acquiring company continue to be traded.

‍Spin off
‍
It is a type of disposal in which a parent company sells all the shares of a subsidiary or distributes new shares of a company or division it owns to create a new company.

The issuing company’s Board of Directors sets out the terms and conditions of corporate actions.

Dividends, Stock Split, Reverse Split, mergers, acquisitions, and Spin-off are processed by Apex our compensating partner. All adjustments will be made to your portfolio in a timely manner.

Note: Sometimes certain shares will be restricted to be negotiated, while the Corporate Stock team works to process these changes.

Folionet does not require minimums or charges maintenance fees, only a $0.98 processing fee per transaction.

Folionet supports: Market orders, limit orders and stop orders.

The different orders type will be briefly explained as follows:

A market order is an order to trade shares at the current market price; without restrictions on the price or timeframe in which the order can be executed.

Additionally, you will be able to introduce market orders out of the trading hours. Nevertheless, these orders will be executed at the opening of the following trading day.

A limit order is an order either to buy or sell shares at a fixed price or better.

‍Buy Limit Order
‍
A limit purchase order can only be executed at the limit or lower price. Your limit price should be the maximum price you want to pay per share.

‍Example (These examples are shown for illustrative purposes only)ABC stock is currently trading in $20 per share, but you only want to pay $15 per share. You should set your limit price to $15.

‍Scenario 1: If ABC drops from $20 to $15 or lower, you will buy shares for $15 at most.
Scenario 2: If ABC does not drop to $15, your order will not be executed.

Sell Limit Order
‍
A sell limit order can only be executed at the limit or higher price. There is no guarantee that a limit order will be executed.

‍Example (These examples are shown for illustrative purposes only)ABC stock is currently trading in $20 per share, but you want to receive at least $25 per share. You should set your limit price to $25.

‍Scenario 1: If ABC rises from $20 to $25 or higher, your stocks will be sold at least $25.
Scenario 2: If ABC does not rise to $25, your order will not be executed.

A stop order is an order to buy or sell only after a certain price level (the stop level) has been reached. If stocks go down and the price is reached, stop orders help minimize losses by closing the position at the market price. Although stop orders are commonly used when selling securities, stop orders can also be used to buy shares.

‍Buy Stop Order
‍
A Stop purchase order is used to buy shares for more than a certain price at which the investor thinks the share price will break a barrier to continue the increase. If the stock rises to your stop price, your buy stop order becomes a buy market order.

‍Example (These examples are shown for illustrative purposes only)ABC stock is currently trading in $20 per share, but you want to wait to purchase ABC because you believe an upward trend could begin shortly after a rise in the price. Also, you think that if ABC reaches $24 it may go higher. Therefore, if you set up a stop price at $24, the order will be triggered after it reaches that level.

‍Scenario 1: If ABC rises to $24 or higher, your buy stop order becomes a buy market order and then the stock will be purchased at the following best price available.
Scenario 2: If ABC stays below $24, a market order is not executed, and no shares are purchased.

‍Sell Stop Order
‍
A sell stop order allows you to set a stop price below the current price of the stock. If that stock falls to your stop price, your sell stop order becomes a sell market order.
‍
‍Example (These examples are shown for illustrative purposes only)ABC stock is currently trading in $20 per share. But you want to wait to sell ABC because you think it will rise. To protect yourself in case ABC begins falling, you can set your stop price to $15.

‍Scenario 1: If ABC falls to $15 or lower, your sell stop order becomes a sell market order and then the stock will be sold at the best price available after is triggered.
Scenario 2:If ABC stays at or above $15, a market order is not executed, and no shares will be sold.

A Day Trader is someone who buys and sales the same stock the same day to try to take advantage of the price movement during the day.

A Pattern Day trader is someone who performs four (4) or more intraday transactions during a period of five (5) market days.

The minimum capital requirement for the “Pattern Day Trader” is $25,000, the “Pattern Day Trader” must have at least $25,000 deposited on any of the days on which the transaction occurs. The minimum maintenance margin requirements for the “Pattern Day Trader” are 25% as for regular customers.

If you do not have this amount in your account, you can only make three (3) day trades every five (5) market days. And if you exceed this limit your account will be restricted for 90 days.

For more information of “Pattern Day Trader” visit:

‍http://www.sec.gov/investor/alerts/daytrading.pdf

‍http://www.sec.gov/answers/patterndaytrader.htm

To add a stock to your watchlist on your app:

To remove a Stock from your Watchlist:

Market Price
‍
The market price is the current price at which an asset or service can be bought or sold.

‍Bid & Ask Spread
‍
The Bid-ask spread is the amount by which the ask price exceeds the bid price for an asset in the market, is the difference between the highest price and the lowest price that the buyer or seller is willing to accept.

The Chart

‍In the graph shown in the dashboard, you can see your assets value over time. You only have to tap the range of time you want to see.

If you have an open position, you can see various information of the stock.

They’re the stats you see about a stock you want to buy or sell.

If you want to close your account, please contact us at support@folionet.com and we will help you with your request.

Before asking to close your account, please be sure you complete the following:

Sell all your positions > Withdraw the balance.

While you use the app or make some trades, error messages could appear that could mean a variety of things. Some errors are normal parts of the app, such as messages regarding day trade protection.

‍If you receive confusing error messages, please contact us at support@folionet.com.

There are two types of brokerage firms: introducing brokers and clearing brokers, which have different regulatory oversight requirements.

‍Folionet is considered an introducing broker, whose clearing broker is Apex Clearing.

An introducing broker is a broker-dealer that contracts with a clearing firm (Apex Clearing) to handle the execution and settlement of orders that the introducing firm receives from its clients.

They have three main tasks:

Here is some investment terminology you may come across:

‍ADR (American Depository Receipts): They make it easier for investors to buy shares of foreign companies not listed on U.S exchanges.

‍Bid-Ask Spread: Represents the supply and demand for a stock or option. The bid price is the highest price other traders in the market are willing to pay, and the ask price is the lowest price traders are willing to accept for the asset.

‍Buying Power: The amount of money you can use to purchase stocks.

‍Corporate Action: Any activity a company takes that results in a notable change to the company’s stock.

‍Delisting: A stock is “delisted” when it has been removed from the stock exchange.

‍ETF: Group of assets pulled together that trades like a normal stock, they could be a collection of stocks, bonds or derivates.

‍FINRA: Folionet is a member of the Financial Industry Regulatory Authority, Inc. (FINRA), which is a self-regulatory organization that promotes honesty and fairness in the broker-dealer industry.

‍First In First Out (FIFO): This refers to how the cost basis is calculated.

‍Forward Stock Split: If a company executes a forward stock split, it is increasing the number of shares outstanding without changing the overall market value of the shares.

‍Fractional Shares: Is a piece of one whole share of stock.

‍Good-til-Canceled (GTC): Refers to a type of order you can place in the market. This type of order will remain open until you cancel it.

‍Good-for-Day (GFD): Refers to a type of order you can place in the market. This type of order will remain open until market close on the day you place it.

‍High-Volatility Stocks: They are considered riskier investments; volatility is a measure of how dramatically the value of a stock changes in a period.

‍Instant Settlement: If you have a margin account, this means that if you sell a stock today, you can use the funds right away, instead of waiting two trading days.

‍Interest Payments: Folionet pays you interest generated from your stocks and cash.

‍IPO: Is the process of raising capital by offering shares of the company to the public for the first time.

‍Last Sale Price: Is the most recent price at which a trade was executed in the market.

‍Limit Order: Allows you to choose the price you would like to pay for an asset, so that if the asset rises or falls within that range you will get executed at that price or better.

‍Limit Price: Lets you choose a specific price that you are willing to buy or receive for an asset.

‍Low-Volume Stock: A stock has low volume if there are not many people trading it in the market.

‍Margin: Buying stocks on margin means that you have borrowed money from your brokerage to fund your purchase.

‍Margin Maintenance: The margin maintenance requirement in Folionet is the minimum portfolio value you can have before you are at risk of getting into a margin call.

‍Margin Call: Is a warning that your portfolio value is below your margin maintenance requirement.

‍Market Hours: The stock market opens for trading at 9:30 AM EST and closes at 4 PM EST.

‍Market Order: Is an order that will execute at the next price in the market.

‍Merger: If two companies merge, there are almost always significant implications for the shareholders of both companies.

‍Nasdaq: Is a stock exchange where buyers and sellers can trade stocks, it is an electronic trading network.

‍NYSE: It is the biggest stock exchange in the world.

‍Partial Execution: This happens when only some of your order gets filled.

‍Penny Stock: Refers to a stock issued by a company that is valued at less than $5 per share.

‍Regulation T Call: Your account might get a Regulation T Call if it does not meet the initial margin requirement for stocks you have purchased.

‍Reverse Stock Split: When a company executes a reverse stock split, it is decreasing the number of shares outstanding without changing the overall market value.

‍SEC: It oversees and regulates financial institution on behalf of the United States government.
Settlement: It is the time it takes stocks or cash to move from one place to the next.

‍Spinoff: A company’s board may decide to create a new subsidiary of their company, and they award shareholders of the parent company shares of the new company.

‍Stock Split: A company decides to execute a stock split when they want to increase or decrease the number of shares outstanding.

‍Stock Transfer: Allows you to transfer shares of stock from other brokerages into your Folionet account and vice versa.

‍Stop Price: An order will only be placed on the market if the price of the asset reaches or passes your stop price.

‍Stop Order: Is an order type that triggers a market order to buy or sell when a stock reaches your designated stop price.

‍Stop Limit Order: This type or order allows you to set a stop price. The difference is that it will trigger a specified limit order when your stock reaches your stop price.

‍Time-in-Force: It indicates how long your market, limit, or stop order will remain active. It includes Good-for-Day (GFD) and Good-til-Canceled (GTC).

‍Untradable: If a stock is untradable on Folionet you will not be able to buy or sell shares of it.

‍Wash Sale: If you sell a stock for a loss, and then buy the same stock or a similar stock within thirty calendar days, you have executed a wash sale.