Sprott Global Resource Investments Ltd. Frequently Asked Questions

Sprott Global Resource Investments Ltd. is a U.S. broker-dealer focused on the natural resources sectors including precious metals, base metals, oil & gas, agriculture, water and alternative energy.

  • How long have you been in business?

    Sprott Global commenced operations in December 1994.

  • What types of accounts do you offer?

    Answer: Sprott Global offers a variety of account types, including Individual, Joint, Trust, Corporate, Partnership, LLC, Sole Proprietorship, UGMA, and Retirement (IRA, Pension, Profit Sharing, Money Purchase).

  • Do you offer IRAs?

    Yes, including Traditional, ROTH, SEP, Custodial, and Rollovers.

  • Is my account insured and secure?

    Our clearing firm, RBC Correspondent Services, is a division of RBC Capital Markets, LLC. RBC Capital Markets, LLC is a member of the Securities Investor Protection Corporation (SIPC) which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org.

    RBC Capital Markets, LLC, has purchased an additional policy that offers coverage in excess of the protection provided by SIPC. This coverage covers additional securities and cash protection up to $99.5 million per client, of which $900,000 may be in cash. A $400 million aggregate limit applies to this additional coverage.

    RBC Capital Markets, LLC also offers protection if a client’s securities are missing because of the theft by an outsider, computer fraud or theft by an employee for personal gain. In such cases, the firm’s CAN$310 million Financial Institution Bond coverage would cover the client’s losses, subject to that policy’s terms, conditions, and limits.

    Note: Neither SIPC protection, nor protection in excess of that offered by SIPC, covers a decline in the value of a client’s assets due to market loss. Additional information is available upon request or at www.sipc.org.

  • Can I do partial transfers of portfolios held elsewhere?

    Yes.

  • Can I trade online?

    While you cannot trade online, you can access your Sprott Global account using a proprietary ID and password. This will allow you to view your portfolio, current market prices, activity, statements, trade confirmations, tax filings, realized and unrealized gains/losses, etc.

  • How often do I get a statement?

    Statements are mailed to clients monthly. In lieu of receiving a hard copy by mail, you can also request to be notified by email that your most recent statement is available for viewing online by visiting www.investor-connect.com.

  • Do you sell Mutual Funds?

    Through our clearing firm, Sprott Global can buy and sell most mutual funds. However, we are of the opinion that with proper guidance from us, you can construct a higher quality portfolio than most funds. We believe that mutual funds are appropriate for investors who wish to spend little or no time managing their money. Like most things in life, the success you achieve from investing is a function of the effort you dedicate to it.

  • Do I have access to Rick Rule?

    At the time you open your account, you will be assigned to a registered representative who is part of an investment team made up of knowledgeable resource specialists. As you would expect, all members of the Sprott Global investment team have full access to the research ideas generated by our in-house geologist, consulting analysts and Rick Rule, and regularly share information related to specific stocks as well as the markets as a whole.

    Rick’s greatest use of time and energy is researching high potential resource investments, a process that often includes international travel to personally inspect mining sites. His findings are then shared with the investment teams back in the office. While your actual interaction with Rick may be minimal, please rest assured his ideas are always communicated to Sprott Global’s brokers and, as such, are available to you with just a phone call.

  • Do you publish research reports?

    No. Because of improprieties discovered within the research departments at certain large brokerage firms, FINRA implemented regulations that make it difficult for a small firm like Sprott Global, which also conducts investment banking to publish research. However, these regulations do not preclude us from conducting research and disseminating it to our clients verbally.

  • Are all investments speculative?

    By our definition, speculative means an investment with the potential for a very high return. However, as risk and return are almost always closely correlated, speculative investments also carry a higher degree of risk. This is true of many investments in the natural resource sector.

    While our firm does its best to reduce risk through careful securities analysis, there can never be a guarantee against loss. This is why we generally require clients who invest in speculative stocks to have a minimum net income and net worth, depending upon age, employment status, and various other factors.

    At the beginning of our relationship, one of our registered representatives will discuss your personal level of risk tolerance. They will also review your current financial position and goals. This is an important step in helping to determine if natural resource investments are suitable for your portfolio and, if so, how much exposure to these investments makes sense. By asking important questions, we hope to support you in making the best possible decisions for you and your family.

  • What is your commission structure?

    We believe that our commissions are very competitive, especially in light of our specialized services. They generally fall somewhere between those of the "discount brokers" and the larger, full-service brokerage firms. In percentage terms, you can expect to pay somewhere between 0.5% and 3.5% depending on the price of the shares and the number of shares traded, subject to a minimum of $60 per trade. There is a minimum opening transaction requirement of $1,500. Additionally, there will be a $35 charge deducted from your account annually unless you make at least two trades per year or maintain a cash balance over $10,000. To receive a commission-rate quote on a specific transaction, please don’t hesitate to call and speak with a Sprott Global registered representative at 800.477.7853.

  • How secure is my account information?

    To protect your information and assets, Sprott Global and RBC employ extensive physical, electronic, and procedural security controls, regularly adapting them as technology and threats evolve. Although we cannot fully disclose all of our tactics, here are just a few of the measures we take.

    Customer ID and Password
    When you sign up for online access to investor-connect.com, you create your own personal password. Together with your Customer IDs, your secret password allows you encrypted, secure access to your accounts.

    Firewalls
    To block unauthorized access, all our computer systems are protected by firewalls, electronic barriers that prevent unauthorized access to our networks.

    Encryption
    All online activity involving personal or sensitive information is encrypted from the point it leaves your computer until it enters our systems. For your general online security, be sure you see the letter “s” at the end of “https” at the beginning of the URL address after logging in, indicating the site is secure (e.g., “https://www.investor-connect.com”).

    Employee Education
    Sprott Global employees receive thorough training on our security policy and are held accountable for adhering to the policy. Employees who work directly with customers also receive training on emerging risks, such as Identity Theft.

 

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