Can this document be signed electronically?

Yes. Electronic signatures meet U.S. legal standards under the ESIGN Act (15 U.S.C. ch. 96, 2000) and UETA (1999) when intent, consent, attribution, and reliable record retention are present.

Is notarization or witnesses required?

It depends. If the document functions as a power of attorney, some states require notarization and witnesses (for example, Florida requires two witnesses). Check the applicable state rules before submission.

How can I revoke or cancel an authorization?

Issue a written revocation signed by the account owner, deliver it to the broker and authorized party, and confirm receipt; follow any broker-specific revocation procedures to ensure trades are blocked.

What authentication strength is appropriate?

Use multi-factor authentication for high-risk accounts: email + SMS, knowledge-based authentication (KBA), or ID credential analysis; stronger authentication reduces fraud and supports auditability.

How should I store executed documents?

Retain signed originals or certified copies in secure storage with encryption in transit (TLS 1.2/1.3) and at rest (AES-256). Maintain accessible audit records for the applicable retention period.

Which supporting documents are typically required?

Attach government-issued ID, corporate resolution or board minutes for entities, TIN/EIN verification, and any broker-specified forms such as medallion signature guarantees or compliance attestations.

Electronic Signature
Templates
Miscellaneous
Trading Authority Document

Trading Authority Document

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

TRADING AUTHORITY DOCUMENT

Effective Date:

Parties

Client Name Client Address Client Entity Type

Individual Corporation LLC Trust Other

Authorized Trader / Broker Name Authorized Trader Firm Account Number(s) Covered

WHEREAS

WHEREAS, Client desires to grant the Authorized Trader limited authority to place and manage securities transactions and related activities on Client's account(s) identified above, subject to the terms and limitations set forth in this Trading Authority Document; and

WHEREAS, Authorized Trader represents that it is duly authorized, licensed and qualified, where required, to execute transactions and to perform the services contemplated by this agreement and will act in accordance with applicable statutes, regulations and the terms of this document; and

WHEREAS, the parties intend for this document to constitute a binding authorization and contract governing the relationship between Client and Authorized Trader.

Scope of Authority

Client hereby grants Authorized Trader the authority to perform the following services on the Client's account(s). Unless explicitly checked, such powers are not granted.

Execute buy and sell orders for cash securities Authorize short sales Trade options and exercise options

Use margin and margin loans Transfer, deposit, or withdraw funds and securities Place, modify, or cancel orders

Specific Limitations and Instructions

Trading Limits

Per-Trade Dollar Limit Daily Aggregate Limit

Payment Terms

Client agrees to compensate Authorized Trader as follows. Fees and payment schedules are binding and payable when due.

Compensation Structure (describe) Fee Schedule Late Payment Fee Payment Instructions / Remittance

Term and Termination

This Trading Authority commences on and continues until unless earlier terminated as provided herein.

Notice Period for Termination

Either party may terminate this agreement for material breach that remains uncured for the notice period set forth above. Termination shall not relieve Client of obligation to pay fees accrued prior to termination, nor shall it affect liabilities for acts undertaken in reliance on this authority prior to receipt of termination notice by the other party.

Confidentiality

Authorized Trader shall hold confidential all non-public information concerning Client's accounts, strategies, financial condition and holdings, and shall not disclose such information except as required by law, regulation, or pursuant to authorized services under this agreement. This obligation shall survive termination for a period of two (2) years.

Representations, Indemnity and Limitation of Liability

Each party represents that it has the authority to enter into this agreement. Client acknowledges the risks of securities trading. Client agrees to indemnify and hold harmless Authorized Trader and its agents from and against any losses, liabilities or expenses arising from acts or omissions in good faith under this authority, except for losses resulting from Authorized Trader's gross negligence, willful misconduct or fraudulent acts. Except as required by applicable law, neither party will be liable to the other for consequential or punitive damages.

Compliance with Laws and Policies

Authorized Trader shall conduct activities under this agreement in compliance with all applicable statutes, rules, and regulations and in accordance with the trading platform, clearing firm, and brokerage policies governing Client's account. Client shall provide all information and documentation necessary to permit Authorized Trader to perform the authorized services and shall notify Authorized Trader promptly of any material changes.

Governing Law

This agreement shall be governed by and construed in accordance with the laws of the State of without regard to principles of conflict of laws.

Entire Agreement

This Trading Authority Document, including any schedules or addenda executed by the parties, constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior oral or written agreements. Any modification must be in writing and signed by both parties.

Miscellaneous Provisions

If any provision of this agreement is held invalid or unenforceable, the remaining provisions shall remain in full force. Notices required hereunder shall be in writing and delivered to the addresses set forth above or such other address as a party designates in writing.

Client:

By:

Date:

Authorized Trader:

By:

Date:

What a Trading Authority Document Is and when it applies

A Trading Authority Document is a written authorization that lets an individual or entity instruct a broker, custodian, or financial institution to place trades, manage a securities account, or perform specified investment activities on behalf of an account holder. It defines who may act, what actions are permitted, applicable account identifiers, and the effective period. Firms typically require the document to open discretionary accounts, enable third-party traders, or permit external advisors to execute transactions under defined limits and conditions.

Why a clear Trading Authority Document matters for compliance and control

A precise Trading Authority Document reduces operational risk by specifying authorization scope, authentication expectations, and retention requirements. It creates an audit trail and helps firms meet regulatory oversight while clarifying liability among parties under ESIGN (15 U.S.C. ch. 96, 2000) and UETA (1999).

Who typically completes or signs a Trading Authority Document

The precise signer set depends on account type and internal policies; brokerage and advisory firms will often require specific titles, notarization, or additional documentation.

Individual investors granting discretionary authority to a financial advisor or registered representative.
Corporate treasury or family office designating an authorized trader or broker-dealer.
Investment advisory firms registering client trading delegations and internal compliance officers.

Typical signers and their roles

Authorized Trader — Portfolio Manager

A portfolio manager signs when given discretionary trading rights. They execute trades within the limits and types of securities defined in the document and must comply with broker onboarding checks and the account holder’s written instructions.

Account Owner — Chief Financial Officer

A corporate account owner or CFO provides approval to delegate trading authority, specifies internal limits and reporting cadence, and remains responsible for oversight and retention of the executed authorization.

Core components to include in a professional Trading Authority Document

Include clear, unambiguous clauses so brokers and regulators can confirm the scope and limits of authority.

Parties Identified

Full legal names, business or individual details, and contact information for the account owner and each authorized agent; include legal entity type and TIN where applicable.

Scope of Authority

Precise description of permitted activities (buy/sell/short/options/cash transfers), any security classes excluded, and dollar or percentage limits on trades or exposures.

Account Details

Brokerage account number, account title exactly as held, clearing firm identifiers, and custodian name to avoid misrouting or processing delays.

Effective Period and Termination

Effective date, expiration or renewal terms, and the mechanism for early revocation or automatic termination on account closure.

Authentication and Verification

Required signer identity checks, acceptable authentication methods, notary or witness needs, and any electronic signature provisions consistent with ESIGN/UETA.

Reporting and Records

Required trade confirmations, periodic reporting frequencies, and retention responsibilities for both the account owner and the authorized party.

Step-by-step: filling and submitting a Trading Authority Document

Follow these steps in order to complete the form accurately and minimize processing delays.

01

Collect information: Assemble IDs, account numbers, and TINs.
02

Specify limits: Define permitted instruments and exposure caps.
03

Sign and verify: Complete signatures, notarization, or witness steps.
04

Submit to broker: Send completed document via broker’s accepted channel.

Typical online configuration when completing the form electronically

Common field settings and workflow choices for digital completion and routing.

Field	Configuration
Signature Field	Required; date-stamped; signer role enforced
Authentication	Email + SMS code or KBA for high-risk accounts
Conditional Fields	Show additional limits if discretionary box checked
Routing	Sequential: account owner → compliance → broker

Where to send the completed Trading Authority Document

Choose the destination that matches the broker’s onboarding and compliance process to avoid rejections.

Brokerage Upload: Submit via broker portal upload.
Secure Email: Use encrypted email if broker permits.
Fax or Mail: Use only if broker requires physical copy.
Custodian Delivery: Send to custodian for custodial accounts.

Digital signing and platform interoperability considerations

Validate that exported audit trails, signer IP/timestamp, and verification records meet the broker’s compliance checklist before transmission.

File formats: PDF and DOCX accepted by most brokers
Authentication: Email + SMS or KBA often required
Integrations: Common integrations: Salesforce, NetSuite, Google Workspace

Typical timelines and processing expectations

Understand average processing windows so trading access is not delayed and compliance reviews are completed on time.

Broker review:

1–3 business days

Compliance checks:

3–7 business days

Notary or witness scheduling:

Varies; allow 2–5 business days

Account activation:

Often within 24–48 hours after approval

Record retention start:

Date of signed document

Key processing milestones from submission to trading

Follow this milestone sequence to track where the document is in the onboarding lifecycle.

01

Submission

Document delivered to broker or custodian for intake.

02

Identity Verification

Broker completes ID checks and KYC screening.

03

Compliance Approval

Compliance reviews scope and limits for discretionary trading.

04

Activation

Trading rights applied to the account and confirmed.

Common mistakes to avoid when preparing the document

Submitting a mismatched name or TIN that fails broker identity verification and delays onboarding.
Leaving scope vague (e.g., 'manage account') which can lead to rejected trades or compliance escalation.
Forgetting notarization or witness requirements in states that treat it as a power of attorney.
Failing to include account number or exact account title, causing misapplied authority.

Risks and potential penalties from incorrect or missing information

Account Rejection: Processing decline

Trade Reversal: Executed trades may be reversed

Regulatory Inquiry: Compliance investigations possible

Financial Loss: Unauthorized trades create liability

Backup Withholding: 24% withholding risk

Contract Dispute: Enforceability challenges

Comparing eSignature vendors for Trading Authority Document workflows

Vendor pricing and compliance features influence how you collect signatures and store verifiable audit trails; signNow appears first for parity with platform data.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently asked questions about Trading Authority Documents

Answers to common questions about e-signing, notarization, revocation, and recordkeeping for trading authorizations.

Need help? Contact support

Can this document be signed electronically?
Yes. Electronic signatures meet U.S. legal standards under the ESIGN Act (15 U.S.C. ch. 96, 2000) and UETA (1999) when intent, consent, attribution, and reliable record retention are present.
Is notarization or witnesses required?
It depends. If the document functions as a power of attorney, some states require notarization and witnesses (for example, Florida requires two witnesses). Check the applicable state rules before submission.
How can I revoke or cancel an authorization?
Issue a written revocation signed by the account owner, deliver it to the broker and authorized party, and confirm receipt; follow any broker-specific revocation procedures to ensure trades are blocked.
What authentication strength is appropriate?
Use multi-factor authentication for high-risk accounts: email + SMS, knowledge-based authentication (KBA), or ID credential analysis; stronger authentication reduces fraud and supports auditability.
How should I store executed documents?
Retain signed originals or certified copies in secure storage with encryption in transit (TLS 1.2/1.3) and at rest (AES-256). Maintain accessible audit records for the applicable retention period.
Which supporting documents are typically required?
Attach government-issued ID, corporate resolution or board minutes for entities, TIN/EIN verification, and any broker-specified forms such as medallion signature guarantees or compliance attestations.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now