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Scottrade

Nick of Herndon, VA January 27, 2009

Nick of Herndon VA (01/27/09)
After my complaint to ConsumerAffairs on 1-21-2009, I have filed my complaint to SEC on 1-22-2009 to get their attention, because what Scottrade did might cause their customer loss like me. After Scottrade rejected my request for their response in writing (They said that they only give me when SEC inquiry to them), I faxed my written request to Scottrade branch and ask them to forward to their compliance department for writing their response.

I have sold some of my stocks on 1-21-2009 and sold all rest stock on 1-27-2009. Those fund about 3,000 from sold stocks on 1-21-2009 should be available in yesterday (1-26-2009, T+3), but today (1-27-2009) I have found that my fund is still not available to me due to Scottrade freezing those fund. I called Scottrade branch and they said that those fund should have available but then they changed to that my fund, including those sold on 1-21-2009, will only available to me on 1-29-2009 (T+3 for my second stocks selling).

Scottrade freezes all my fund without any legitimated reason. And I plan to pull all my fund out and to file a second complaint to SEC. I believe that this event should let all investors know, therefore, I file this complaint to ConsumerAffairs again.

Nick of Herndon, VA January 21, 2009

Nick of Herndon VA (01/21/09)
Scottrade sent me an alert that I was PDT (Pattern day trade) yesterday 1-20-1009. But, I had only one partial closed position in same day yesterday within five business days due to an understandable personal reason. Another two trades were repurchase only and should not be counted as day trades at all and Scottrade admitted that today 1-21-2009. Therefore, just one trade and now they still insisted on their restriction on my account and asked me to put more fund into my Scottrade account. SEC-NYSE 2001 rule 431: 1.

The term pattern day-trader is defined as any customer who executes four or more day trades within five business days. 2. The minimum equity requirement for pattern day traders is 25,000. 3. The amendments redefine the term day trading to treat the sale of an existing position held from the previous day as a liquidation, and the subsequent repurchase of that position as the establishment of a new position not subject to day trading margin requirements.

There were another same alert in November 2008 after I had pulled fund and left only little over 25,000 in my account, and in that time they included those trades when my account was still above 25,000 and also included my repurchase that should not be counted as day trades. Scottrade branch staff insisted that repurchase must be counted as day trades and I must put more fund back into my account. I didn't check SEC-NYSE rule 431 at that time and I just added more fund into my account. Now, with only one trade on the same day with a particular personal reason, they put on restrictions on my account immediately even without 1 week waiting fund adding time like in November, and just asked for more fund.

Now they claimed that this is due to my previous PDT alert in November, which should not exist neither if they really follow SEC-NYSE 431 rules. With these two (faked?) PDT alerts, I start to doubt that Scottrade might just try to collect more cash fund from their customers in current credit freezing financial environment. When market went unstable, I have started to pull out profit and fund from Scottrade since last October. I don't know if this is the way they are trying to force me to put fund back into my Scottrade account, and rule 431 has just become their excuse only. But, they definitely should never do this.

Eddie of Malden, MA October 30, 2008

Eddie of Malden MA (10/30/08)
They are offering ReferAll program that if you refer a friend and open a new account with Scottrad, both of you will get 7 free treads. Part of is is a lie!!

1st, you have to be a person never Open an account with Scottrade before! If you have an account with Scottrade say 5 years ago, even you close that account and open a new one, they will not give you any free tread! Lie Two, you have to call to local office to ask for the free treads! If you forgot to call, you will not get any free tread!!

Michael of Henderson, NV October 11, 2008

Michael of Henderson NV (10/11/08)
i placed a buy to open option and sold it at a profit an hour later, and then 5 or 6 hours later a trade shows up as negative, (sell to close WITHOUT a corresponding buy to open) which is impossible but they took aprox. 4,000 from me to close it and their compliance dept. Randy said makes no difference if it it 4 thousand, 4 hundred thousand or 4 hundred million they have no responsibility and when i complained after 10 years with them they immediatley PUNISHED ME BY DECLARING ME A DAY TRADER AND DEMANDING AND ADDITIONAL 21,400.00 TO MAINTAIN THE ACCOUNT. Michael

Brad of Rancho Cordova, CA August 20, 2008

Brad of Rancho Cordova CA (08/20/08)
Scottrade looks for any excuse they can to restrict opening transactions. This ranges from forms (even those that their lawyers have come up with since you opened your account) to owner verificiation (they will deposit your money...you just can't use it to buy anything). It unbelievable. All I can figure out is they want to keep my money in a cash account paying almost no interest so they can profit off of the spread.

It's difficult to determine the amount of money I have lost due to their deliberate obstructive actions. I have not tracked the potential value of my trades....water under the bridge.

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