FAQ

	Accounts
	Trading
	Computer & Systems
	Portfolio Management

Accounts

How do I open an account?
Fill out the new account information form on our web site and submit it. A TAIB customer service representative will call you to gain a better understanding of your unique investment needs and guide you through the account opening process. The customer service representative will then mail/email the appropriate account opening document set, comprising of the TAIB Bank B.S.C.(C) demand account opening form and the usdirect trading account forms to you. Alternatively, you could download the complete account opening set from our website. Return the signed account opening set along with the required documents to:

The Manager,
TAIB Securities W.L.L
TAIB Bank B.S.C.(C)
TAIB Tower
Diplomatic Area
P. O. Box 20485
Manama
Kingdom of Bahrain

I have mailed the completed forms and documents to you. What is the next step?
Upon receiving the forms:
We shall acknowledge receipt by email.
Check the forms to see of they are complete in every manner. If complete and approved we will open 2 accounts       for you:
       a demand account with TAIB Bank B.S.C.(C)
       a trading account with the custodian Pinnacle Capital Markets, Inc.
 Once the accounts have been opened, we will notify you through email with account details.

What if the forms are incomplete?
If the forms sent by you are incomplete in any detail, we will request you to resend the complete account application form to us.

I have received your email notifying me that 2 accounts have been opened for me. Why 2 accounts?
For using the usdirect service, you need to have 2 accounts set up:
1. usdirect trading account - which reflects the various stock positions that you have
2. Special demand account with TAIB Bank B.S.C.(C) - if you are already an account holder at TAIB Bank B.S.C.(C) , you would not need another demand account.

Why do I need 2 different accounts?
The trading account holds the securities positions and cash balances you have. The demand account with TAIB Bank B.S.C.(C) allows efficient remittances to and from the trading account. This is the account from which we would be conducting your fund transfers. You need to have only 1 demand account with TAIB Bank for all your relationships.

OK, both my demand and trading accounts have been set up. When can I start trading?
You can start trading as soon as your usdirect trading account is funded. Depending on the type of account that you have selected, you will have to remit a minimum deposit.

How do I transfer funds to the trading account?
1. Ensure your demand account has sufficient funds in it to wire out the minimum initial deposit to the usdirect trading     account.
2. Just fax us an instruction to transfer the money to your usdirect account.
If your demand account is not funded adequately (does not have sufficient funds) you will need to wire money into the demand account.

What is the minimum account opening balance?
There are account minimums set for each type of service. Currently the minimums for opening a cash account are US$25,000 and for opening a margin account are US$50,000.

What types of accounts are offered by usdirect?
You may open an Individual, Joint or Corporate Account.

Are usdirect accounts insured?
Securities Investment Protection Corporation (SIPC) provides $500,000 of insurance per account; $100,000 for cash and $400,000 for securities. For more information on SIPC click here www.sipc.org.

The custodian Pinnacle Capital Markets (CCS) provides supplemental insurance in the amount of US$ 10 million.

Coverage does not protect against market loss, depreciation of portfolio values or any other risk other than the failure of the broker-dealer and/or its clearing firm.

Demand and trading account

How does the demand account facilitate operating my usdirect account?
As mentioned above the demand account is the account between you and your trading account. We recommend you keep the demand account adequately funded at all times. Remitting and withdrawing funds from the trading account is extremely simple. All that it takes is a simple mailed / faxed instruction to us.

Do I get a cheque book for the demand account?
No you do not get a cheque book for the demand account.

Can I see my demand account online?
Yes, you can view your demand account balance on the Internet. Click on the 'TAIB Online' visible on our homepage - www.taibdirect.com.

What is a trading account?
The trading account is your active usdirect account, which holds the cash balances and securities positions that you create during the course of trading.

How can I get the details of the balances and positions that this account holds?
These details are available to you online at the usdirect website. You have to login with the userid and password given to you. You will be able to see detailed reports on the Account balance, Profit and Loss position and transactions placed. Click on the 'Portfolio login' link visible on all usdirect webpages.

Can I remit additional funds or withdraw profits from the account?
Yes you can remit and withdraw funds from this account. These procedures are explained in detail in the 'Remitting and withdrawing funds' section.

What is a margin account?
A margin account is an account that allows you to borrow money against the net equity of your account for the trading of specific securities. All clients by default trade on a cash basis on usdirect. Based on the trading history and performance of clients, TAIB could offer margin trading to certain select clients. This offer is purely at TAIB's discretion.

What is a short selling?
This is an investment strategy in a margin account whereby you sell a security you do not own in anticipation of a decline in the price of the security. A profit can be realized if the security sold decreases in value and is bought back at a lower price on some future date. You can borrow money against fully paid-for securities that you deposited.

What are the risks of a margin account?
Your potential losses are greater due to leverage if there is adverse market movement. If the market value of your securities declines, maintenance calls must be met on specified dates or usdirect will liquidate your securities to meet the call. The timing of such a sale could be unfavorable. The potential loss on short sales is without limit because there is no ceiling on the price of stock. You need to weigh the risk involved with margin trading before you decide to use this tool.

Please read the "Margin" section on our web site.

REMITTING AND WITHDRAWING FUNDS FROM THE TRADING ACCOUNT

How do I remit money to my trading account?
Remittances to the usdirect trading account can be made only out of your demand account with TAIB. It follows that if your demand account is sufficiently funded, a signed fax instruction to TAIB would be sufficient. If however your demand account does not have sufficient balance in it, then you would need to first remit funds into the demand account.

How do I withdraw funds from the trading account?
Mail/fax a withdrawal instruction to us - duly completed and signed. Subject to clear funds being available in your account, we will arrange the wire transfer into your demand account.

Withdrawing money from the trading account

Under what circumstances would my remittance request be refused?
Your instruction to withdraw funds might not be executed if the amount of clear unencumbered funds available in your trading account is less than the withdrawal amount you have requested.

If my withdrawal request is not executed, how will this be resolved?
We will notify you of our inability to execute your request. We will also indicate the maximum possible withdrawal that will be allowed. You will have to mail/fax us a revised instruction. Provided your new instructions satisfy the conditions described previously, the funds will be transferred to your demand account.

Trading

What is usdirect?
usdirect is an online stock trading service provided by TAIBDirect.com. It allows you direct access to trade on various US stock exchanges and ECNs. usdirect offers you 2 different trading platforms,

1. usdirect Web
2.usdirect Ultimate

Our trading platforms are some of the most advanced online trading systems in the industry. The softwares provide a fast point & click order entry mechanism. By using usdirect you can rout your orders to major exchanges, ECNs and market makers.

What is a broker assisted trade?
Our broker assisted trading program gives you access to our high-speed execution systems without the need of a computer or other electronic service. To place an order, all you will need to do is call one of our trained brokers on 00973-17 549499.

All usdirect customers can use our brokers to handle their trades. There is a fee, so please check our fees and commissions section. In the event we are unable to offer total web access service, we may make our brokers available for regular commissions. All calls to the trading desk are recorded for quality and integrity.

How do I know when my trade has been executed?
You will see a record of your executed order on-line via your web browser. You will also have the ability to access your account order history on a screen that records all executed orders and cancellations for any trading day.

To access your account, simply go to the "Portfolio Management" area on the usdirect website.

What happens if there are multiple fills on my order?
Multiple fills on one order qualify as one trade, and hence will be billed as one ticket. In other words, if you placed a market order for 5000 shares, and this trade was filled at 5 different prices in increments of 1000 shares each, it will count as one trade.

However, if after only 2000 shares were filled and you cancel the rest of the order and re-enter the other 3000 at a different price or with a limit, this will count as a second trade.

Who is the clearing agent for usdirect?
Pinnacle Capital Markets Inc. (CCLS) clears all securities transactions and handles all cash and securities for usdirect clients. CCLS is the clearing agent for many online brokerage service providers in the USA.

Can I place an order when I do not have access to my computer or my ISP is down?
Yes. Just call one of our brokers. The commission rates for Broker-Assisted trades are different from those of Direct Trading. However, in event of a systems outage we shall do our best to accommodate you fairly. (We haven't had one yet.)

Can I trade outside of market hours?
Yes. usdirect enables you to execute your orders before the market opens and after the market is closed. Trading is available from 8:00AM TO 8:00PM (US Eastern Time).
After regular trading hours we provide access to several non-traditional exchanges like, Instinet, Nextrade, Island, and SelectNet.

When entering an order outside of market hours, remember that liquidity may be limited and you may be subject to some additional risks. Please read the "Risks and Disclosures" section on the usdirect web site.

What securities can I trade through usdirect?
You can trade U.S. stocks and options through usdirect.

Can I practice on usdirect before I begin trading?
Yes. In our Direct Access trading area, you can enable your account for mock trades with real prices. This gives you a realistic evaluation of your trading performance. When you open your account, ask our Customer Service Representatives to permit your account to mock trade. That way you will only be billed for the data and not charged a commission. As soon as you switch your account from mock trading to regular trading, you will be billed at the normal commission rates.

What are your commissions?
We have formulated a sliding brokerage scale. Volume discounts are available for frequent traders. Please refer to the commissions' structure for more details.

Which are the preferred browsers for usdirect?
taibdirect.com works most efficiently when using either the latest version of Microsoft Internet Explorer 5.0 or later version. If you are experiencing difficulty with your current browser, you may want to download an updated copy of your browser.

Download Internet Explorer here

What is Adobe Acrobat Reader? Why do I need it?
With Acrobat Reader, you can download, view and print account statements in their original format (called Portable Document Format or PDF for short). The Acrobat Reader software, including instructions for installation, can be downloaded for free from the Adobe Systems web site.

Adobe Acrobat is the new standard in paperless publishing. We use it for all of our applications, research documents and statements.

Download Adobe Acrobat Reader here

Do I have to connect via the Internet?
If you would like to direct your own trades then you do need an Internet connection. usdirect Web can be accessed using the web browsers over the Internet. usdirect Web & usdirect Ultimate clients use TCP/IP protocol over the Internet. You do need to have a regular and reliable Internet Service Provider.

However, you can still use our advanced trading systems by calling our brokers and doing a Broker Assisted Trade.

What is an ISP and why should it matter which service provider I use?
An ISP is an Internet Service Provider. The ISP provides you with a connection to the Internet. Hence the ISP directly determines the speed of you connection. A good ISP should be able to connect you at speeds in excess of 28.8 kbps.

What are minimum system requirements for usdirect?
The software requires at least a Pentium II processor with 300 MHz speed, 64 MB RAM, with Windows 95/98 or Windows NT 4.0 operating system.

A dial-up or leased line Internet connection of at least 28.8 kbps.

How secure is usdirect?
Very. Security is among our highest priorities. We offer our clients some of the most advanced security technology available. We employ 128-bit Secure Socket Layer (SSL) encryption software. Clients are advised to upgrade their web browsers from time to time, to keep up with the technology.

What are the important features?
usdirect gives you access to online margin reports, daily econfirms, trade breakdown on a daily, monthly, and yearly basis. Our position Information shows all positions held overnight including closing price and total number of shares carried overnight. Updated and Accurate Cash Entries. A record of cash receipts and disbursements.

Can I review my trade history?
Most traders have enough to worry about with the day's activities. They should not have to worry about trying to remember what they traded four weeks ago. We make all your trade records available for you on a daily, monthly, and yearly basis. (This information comes in real handy around tax time.) We even offer daily trade blotters. Having your trade records easily accessible and easy to read will free up time for you to do what you should be doing - trading.

What are econfirms?
econfirms are end of day electronic confirmations of your trading activity for the day.

Can I track my cash history?
Yes. By accessing your account online, you can track all cash entries and disbursements. All cash movements can be queried right down to the day or month it happened. You have all that information, right at your fingertips.

So what does all this mean?
No more calling. No more being put on hold to see if a transfer or check request went through. Just quick and easy access to all your reports and financial records.