Frequently Asked Questions

Find out if answers to your questions are here

About Folionet
Opening an Account
Deposits & Withdrawals
Using Folionet
Corporate Actions
Tips & Concepts
Tips & Concepts
Why Folionet?
  • To easily trade in the stock exchange.
  • Available for the US and Latin American citizens
  • $0 Commission & No minimums
  • Monitor your investment from anywhere
Why should I invest?

Investing is a great way to make your money work for you. When you invest you have the potential to earn interests and capital gains. The sooner you start investing, the greater your chance to increase your wealth.

Who can invest with Folionet?

US and Latin American citizens who would like to trade stocks in the capital markets. From beginners to experienced investors.

The only requirements are:

  • Be 18 years or older
  • A valid passport.
  • A bank account.
What is a Brokerage Account?

It is an account with a licensed brokerage firm permitting the individual to deposit funds and place investments in stocks, bonds, and other securities.

What is a Cash Account?

A cash account is a type of brokerage account in which the investor is required to pay the full amount for stocks purchased. In a cash account, you are not allowed to borrow funds from your broker.

What is a Margin Account?

A margin account is a brokerage account in which the broker lends the customer cash to purchase stocks. The loan in the account is collateralized by the stocks and cash.

What is the Buying Power?

The buying power is the amount of fully margined stocks that a margin client may use to purchase stocks.

What is a Stock?

Is a share in the ownership in a corporation and represents a claim on part of the corporation’s assets and earnings. 

What is a Dividend?

A dividend is a distribution of a corporations earnings to its investors.

What is an ETF?

An ETF (exchange-traded fund), is an asset that tracks a particular set of equities, similar to an index. It trades just as a normal stock would on an exchange.

What is a Leverage ETF?

A leveraged exchange-traded fund (ETF) is a fund that track the performance of an industry, sector or an index, but uses financial derivatives to magnify the returns of the underlying asset.

What is a Portfolio?

A portfolio is a combination of stocks that an investor holds in his account. These stocks could be from companies of different industries and regions, among others.

What is Diversification?

It is a technique used to decrease the risk of a portfolio, by mixing a variety of financial instruments, reducing the exposure to any particular asset within the portfolio. The rationale is that the portfolio yield will be higher and the risk lower compared to the return of a single instruments.

What is Day Trading?

Day trading is the buying and selling of stocks within the same trading day.

What is a Day Trader?

A day trader is one who buys and sells the same stock on the same day to try to take advantage of intraday price movements.

What is a Pattern Day Trader?

A Pattern day trader is one who executes four (4) or more day trades in a five (5) business day period.

The minimum equity requirement for a pattern day traders is $25,000; pattern day traders must have on deposit at least $25,000 on any day on which day trading occurs. The minimum maintenance margin requirement for pattern day traders is 25%, the same as for regular customers.

Placing four (4) day trades on a five (5) business day period will restrict your account from placing further day trades for 90 days.  This limit applies only to margin accounts, as cash accounts are not suited for pattern day traders.

For more information about Pattern Day Trading, please visit:

What is your net worth?

Net worth is the amount by which assets (what you own) exceed liabilities (what you owe). Net Worth= Assets - Liabilities

What is Compound Interest?

It is interest calculated on the initial deposit and also on the reinvested interest of previous periods. The sooner you start investing, the more time your interests have to compound.

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