Form CRS Relationship Summary
TAPP Engine Securities, LLC is registered with the Securities and Exchange Commission (SEC) as both a broker-dealer and is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC).
Brokerage and investment advisory services and fees differ, and it is important for you to understand these differences. A broker dealer is defined as a firm that acts as an intermediary between buyers and sellers of securities for which they will usually receive a commission and may purchase or sell those securities in/out of their own account. An investment advisor is generally any person or group that provides investment advice or conducts securities analysis in exchange for a fee.
Free and simple tools are available to research firms and financial professionals at www.Investor.gov/CRS, which also provides educational materials about broker/dealers, investment advisers, and investing. This document gives you a summary of the types of services we provide and how you pay.
TAPP Engine Securities, LLC. is a provider of an app-based brokerage business for financial intermediaries to offer commission-free trading to their customers/members. We allow our partners to offer to their customers/members the ability to trade stocks (including Exchange-Traded Funds (ETF)s) and Options.
All customers’ accounts are self-directed. TAPP Engine Securities does not make investment recommendations to customers. Our services involve effecting securities transactions for investors exclusively online. We buy and sell securities only at your direction and we do not offer recommendations of securities, strategies involving securities or securities accounts to you. We do not monitor your account or individual investments, unless we state otherwise in writing. We do not have any account minimums. We offer access to investment tools and education to help you make investment decisions, but this information is for informational and educational purposes only. All transactions are commission free. We will deliver electronic confirmations of each trade executed in your account. Account statements will be delivered to you no less than quarterly, in electronic format.
TAPP Engine Securities is an introducing broker-dealer. Your funds and securities will be custodied by Velocity Clearing, LLC. TAPP Engine Securities, LLC does not provide recommendations or advice on investments, portfolios, or account types.
TAPP Engine Advisors, LLC is our affiliate and a SEC-registered investment adviser which will offer advisory services. However, the entity is merely in the planning stages and are currently not offered to customers.
What services can you provide me?
- We offer brokerage services
- Custody of assets and execution of all securities transactions is provided by our clearing partner – Velocity Clearing, LLC.
- We do not offer investment advice or monitor the frequency or details of your transactions and investments on your behalf.
- If you open an account, we may receive fees from you and/or your introducing firm.
- If you have an investment advisor, they may make recommendations and transact in your account.
- We will deliver account statements to you each month or quarter electronically.
Investment Advisory Services
TAPP Engine Securities, LLC does not offer investment advisory services.
What Fees Will I Pay
You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.
Brokerage Service Fees
There are no transaction fees such as commissions for brokerage services. Our Broker Dealer makes its money from monthly account fees, overnight balances of customer funds held at its qualified custodian bank, payments from market centers for directing to them order flow as instructed by us or Velocity Clearing, and margin charged to your account when funds are lent to you to trade. For certain products, such as mutual funds and alternative investments, the fees are discussed and detailed in the “prospectus” or offering documents, respectively.
Investment Advisory Service Fees
TAPP Engine Securities, LLC does not offer investment advisory services and, therefore, does not charge such fees.
Other Fees and Costs
Other fees and costs are applicable to your brokerage account or accounts. These fees may include account maintenance fees, account inactivity fees and similar types of account fees. These fees are charged by our clearing firm. For more information on fees you may pay, please visit our website at https://www.tappengine.com.
What are your legal obligations to me when providing recommendations as my broker-dealer? How else does the firm make money and what conflicts of interest do you have?
We do not provide recommendations as your broker-dealer. At the same time, the way we make money creates some conflicts with your interest. You should understand and ask us about these conflicts because they can affect the services we provide you. Here are some examples to help you understand what this means. their return may also be based on the firm’s overall profitability.
Example of ways we make money and conflicts of interest
As noted above, one of the ways we make money from payments from market centers for directing to them – through our instruction or the instruction of our clearing firm and executing broker, Velocity Clearing – your order flow. This structure enable us to offer you commission-free trading in your account.
Payment for order flow has been described as a conflict of interest for various reasons. Orders that are executable may not get executed as they may be routed to market makers that do not have the highest liquidity. In addition, the quality of the prices on market or limit orders may be diminished due to the orders being routed to a particular market maker rather than the venue with the best execution price.
How do your financial professionals make money?
TAPP Engine Securities’ financial professionals are compensated by salary and discretionary bonus. Certain financial professionals are also owners in TAPP Engine Securities.
Do you or your financial professionals have legal or disciplinary history?
No. TAPP Engine Securities and its financial professionals do not have any legal or disciplinary history. Visit Investor.gov/CRS for a free and simple search tool to research TAPP Engine Securities and its financial professionals.
Questions you might wish to ask when considering our services:
- Given my financial situation, should I choose a brokerage service? Why or why not?
- What is your relevant experience, including your licenses, education, and other qualifications? What do these qualifications mean?
- How much would I pay per year for a typical brokerage account? What would make those fees more or less? What services will I receive for those fees? What additional costs should I expect in connection with my account?
- How might your conflicts of interest affect me, and how will you address them?
- As a financial professional, do you have any disciplinary history? For what type of conduct? What can you tell me about his or her legal obligations to me? If I have concerns about how this person is treating me, who can I talk to?
- Tell me how you and your firm make money in connection with my account. Do you or your firm receive any payments from anyone besides me in connection with my investments?
- Who is my primary contact person? Is he or she a representative of the broker-dealer? Whom can I talk to if I have concerns about how this person is treating me?
Information Regarding Typical Advisory Accounts
If you open an advisory account (also known as a discretionary account as defined below) with an investment adviser that maintains trading or monetary discretion over your account, you may pay an ongoing asset‐based fee that is based on the value of the cash and investments in your advisory account (an assets under management or “AUM” fee). Features of a typical advisory account include:
- Advisers provide advice, transact in your account, and may rebalance your account, on a regular basis. They design a strategy to achieve your investment goals and are responsible for monitoring your account.
- You can choose an account that allows the adviser to buy and sell investments in your account without asking you in advance (a “discretionary account”) or the adviser may give you advice and you decide what investments to buy and sell (a “non‐discretionary account”).
- Advisers are held to a fiduciary standard that covers the entire investment advisory relationship. For example, advisers are required to monitor your portfolio, investment strategy and investments on an ongoing basis.
- If you were to pay an asset‐based fee in an advisory account, you would pay the fee periodically even if you do not buy or sell. You may also choose to work with an investment adviser who provides investment advice for an hourly fee or provides a financial plan for a one‐time fee.
- For an adviser that charges an asset‐based fee, the more assets you have in an advisory account, often including cash, the more you will pay the adviser. So, the adviser may have an incentive to increase the assets in your account in order to increase its fees.
Where can I find additional information?
You can always ask us for more information and request a copy of this relationship summary by sending us an email at firstname.lastname@example.org. You may also access a copy of the Form CRS here: https://tappengine.com/disclosure-library/