Online trading system having real-time account opening

• US 8,538,857 B2
• Filed: 07/09/2010
• Issued: 09/17/2013
• Est. Priority Date: 03/09/2001
• Status: Expired due to Term

• Current Assignee: Morgan Stanley Services Group Inc. (Morgan Stanley)
• Original Assignee: E*Trade Financial Corporation (Morgan Stanley)
• Inventors: Greene, David, Mierzwa, Dennis, Abukhater, Ayman, Sievert, Michael
• Primary Examiner(s): Kazimi, Hani M
• Application Number:
  US12/833,111
• Publication Number:
  US 20100274707A1
• Time in Patent Office: 1,166 Days
• Field of Search: 705/36.R, 705/37
• US Class Current: 705/37
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

In one embodiment, the online trading system having a real-time account opening process comprises one or more computers coupled to a network. The computers maintain a brokerage account database, and service web page requests received over the network. The web pages are preferably configured to implement a real-time account opening (RTAO) process that establishes new brokerage accounts in the account database. The RTAO process may include (a) obtaining contact information; (b) creating a new record in the brokerage account database for the contact information; (c) obtaining brokerage account application information; (d) updating the new record with the application information; (e) displaying a brokerage account contract; and (f) securing online agreement to said brokerage account contract. The process preferably also includes obtaining funding information to automatically initiate a transfer of funds to the brokerage account.

Claims

1. A method, comprising

principalling, by a processor, online brokerage accounts, wherein the principalling comprises:

obtaining an account type selection;

presenting electronically a list of new brokerage accounts having the selected account type to at least one principal, the principal representing a brokerage;

obtaining from the at least one principal an individual status designation for each of the new brokerage accounts listed, wherein said designation is indicative of acceptance or non-acceptance of the new brokerage accounts;

obtaining a password from the at least one principal; and

if the password is valid, updating records of the new brokerage accounts to reflect the individual status designations.

2. The method of claim 1, further comprising receiving authorization for a real-time transfer of funds, wherein the real-time transfer of funds is an automated clearing house (ACH) transfer from a checking account.

3. The method of claim 1, further comprising receiving authorization for a real-time transfer of funds, wherein the real-time transfer of funds is a credit card charge.

4. The method of claim 1, further comprising presenting an electronically signable account agreement, wherein said presenting comprises presenting an agreement indicator displayed adjacent to the account agreement, wherein the account agreement specifies a named individual.

5. The method of claim 4, wherein said agreement indicator is one of a plurality of indicators displayed adjacent to said account agreement, wherein the plurality of indicators includes a selectable disagreement indicator.

6. An online trading system that comprises:

at least one computer coupled to a network and configured to maintain a brokerage account database; and

at least one computer coupled to the network and configured to execute a principalling process on new brokerage accounts in the brokerage account database, the process comprising;

principalling online brokerage accounts, wherein the principalling process comprises;

obtaining an account type selection;

presenting electronically a list of new brokerage accounts having the selected account type to at least one principal, the principal representing a brokerage;

obtaining from the at least one principal an individual status designation for each of the new brokerage accounts listed, wherein said designation is indicative of acceptance or non-acceptance of the new brokerage accounts;

obtaining a password from the at least one principal; and

if the password is valid, updating records of the new brokerage accounts to reflect the individual status designations.

7. The system of claim 6, further comprising at least one computer coupled to the network and configured to use a plurality of web page templates to service web page requests received over the network, wherein the web page templates are configured to implement a real-time account opening process that establishes new brokerage accounts in the brokerage account database and wherein the real-time account opening process includes:

obtaining contact information;

creating a new record in the brokerage account database reflecting said contact information;

obtaining brokerage account application information;

updating said new record in accordance with said brokerage account application information;

displaying a brokerage account contract; and

securing online agreement to said brokerage account contract.

8. The system of claim 7, wherein the real-time account opening process further includes:

after securing said online agreement, obtaining funding information relating to a financial account;

automatically initiating a transfer of funds from said financial account; and

updating said new record with a buying power greater than zero.

9. The system of claim 8, wherein the real-time account opening process further includes:

displaying a confirmation page indicating successful completion of the real-time account opening process.

10. The system of claim 8, wherein the financial account is a checking account.

11. The system of claim 8, wherein the financial account is a credit card account.

12. The system of claim 7, wherein said securing is accomplished by an electronic signature.

13. The system of claim 6, wherein the web page templates are further configured to implement a trading order placement process.

14. The system of claim 6, wherein the principalling process further comprises:

storing application information of accepted new brokerage accounts on archival media.

15. The system of claim 6, further comprising:

at least one computer coupled to the network and configured to execute a fraud checking process on new brokerage accounts in the brokerage account database.

16. A non-transitory computer-readable storage device comprising instructions that, when executed, cause one or more processors to:

principal online brokerage accounts, wherein the principalling causes the one or more processors to;

obtain an account type selection;

present electronically a list of new brokerage accounts having the selected account type to at least one principal, the principal representing a brokerage;

obtain from the at least one principal an individual status designation for each of the new brokerage accounts listed, wherein said designation is indicative of acceptance or non-acceptance of the new brokerage accounts;

obtain a password from the at least one principal; and

if the password is valid, initialize an update of records of the new brokerage accounts to reflect the individual status designations.