606 & 607  Reporting

Pursuant to SEC Rule 607, SageTrader, LLC is required to disclose its payment for Order Flow practices. Sagetrader, LLC  sends certain equity stock orders to exchanges, broker dealers to and in comes instances electronic communication networks (“ECN”) during regular trading hours as well as pre and post trading market hours. In some instances, some of the applicable market centers provide payments to SageTrader, LLC, or charge access fees depending upon the order and applicable execution. SageTrader, LLC  may also execute certain equity stock orders the principal capacity. Upon written request, the details of these payments and/or applicable fees can be furnished.

Pursuant to a U.S. Securities and Exchange Commission Rule 606, requiring all brokerage firms to make available to the public quarterly reports about their order routing practices SageTrader, LLC claims exemption to this rule due to the fact it does not accept or route any customer orders on a “Held” basis. The report would provide information on the routing of "non-directed” and "held" customer orders- in U.S. exchange-listed equity securities and options where SageTrader has selected the execution venue on behalf of its customers.  Additionally, customers may request a report identifying the venues to which their orders were routed in the prior six-month period which SageTrader will furnish the customer upon request.

Furthermore; the Firm is required to disclose the nature of any relationship it has with the venues it selects to route to for execution. This disclosure will include information surrounding “payment for orderflow” which the SEC broadly defines as forms of arrangements compensating broker-dealers for directing order flow, including monetary payment, reciprocal agreements, services, property, or any other benefit that results in remuneration, compensation or consideration to a broker-dealer in return for routing of customer orders as well as exchange rebates and credits. Information pertaining to the Firm’s routing relationships is enclosed here and within the Firm’s 606 Report. 

In certain cases, SageTrader, LLC participates in programs which result in our receipt of remuneration, compensation or other consideration for having our customers place orders with other broker-dealers, exchanges and market centers for execution. SageTrader, LLC may also participate in programs which result in other broker- dealers' receipt of remuneration, compensation or other consideration for our customers placing orders with these executing brokers for execution.  Relevant information can be seen below.  Additional information regarding the source and nature of the compensation will be furnished upon written request to your customer service representative.

Rule 606(b)(3)

Effective January 1, 2020 the SEC began implementation of new Rule 606 which among other changes requires a broker-dealer, upon request of a customer that places not held orders, to provide specific disclosures, for the prior six months, regarding routing and execution of such orders as set forth under Rule 606(b)(3). Should you need information pertaining to Rule 606(b)(3) please contact compliance@sagetrader.com