10b5-1 trading plans

A 10b5-1 trading plan can help you diversify your stock plan holdings with pre-scheduled sales of company shares, while maintaining an affirmative defense against insider trading allegations.


As one of the first firms to provide automated 10b5-1 plans to stock plan participants, E*TRADE offers customizable solutions, superior service, and industry leadership. Our automated platform lets you create your plan, manage it, and access important documents—all online.

benefits of a 10b5-1 plan

Benefits of a 10b5-1 Plan

A well-designed 10b5-1 plan can be a powerful component of your overall financial strategy by allowing you to leverage your equity awards through pre-determined trading instructions. With a 10b5-1 plan, you can:

  • Trade company stock with our help to comply with security laws
  • Minimize your concentration risk
  • Sell stock at regular intervals and potentially benefit from dollar-cost averaging
  • Pre-schedule trades to coincide with important life events (e.g. home purchase, college expense, or retirement planning)

For executives with more complex situations, we offer fully customizable 10b5-1 plans to ensure you trading plan is aligned with your unique financial needs and goals.

getting started with a 10b5-1 plan

Getting started

There are several things to consider when setting up a 10b5-1 plan, and our automated platform makes it easy to set the parameters of your plan. You’ll need to:

  • Set up the plan prior to your knowledge of material non-public information
  • Specify the share amount, price and timing of the sale(s), as well as the duration of the plan
  • Enter into the plan in good faith
  • Have no further influence over the trades outlined in the plan once implemented