Are brokerages supposed to compensate for system outages?

Discussion in 'Retail Brokers' started by dtryan, Feb 1, 2020.

  1. dtryan

    dtryan

    Hit submit and my order was a pending limit order for 8 minutes before it hit the market. When the server unfroze and it finally went through, the stock was trading below my limit and I had to sell it for an extra $5 a share loss as it was dropping. Cost me $15k
     
  2. TD?

    • TD in Canada was out during the market open today.
    • Wednesday there was a delay in trade confirmations.
     
  3. dtryan

    dtryan

    How did you know? Lately, their servers always freeze constantly as they have been overwhelmed during market open. For the past 2 weeks during the first 30 minutes of market open, I have to pray their system is up. It really is killing my overnight holds
     
  4. dtryan

    dtryan

    So as a client that trades large lots of volatile stocks, is it even possible to get compensation?
     
    • I don't think so because they have a 800 number to call trades in.
    • 1-800-465-5463
     
  5. dtryan

    dtryan

    I am actually PCS so I have a direct line and when I called it still took them 20 minutes or so to research what the problem was. For volatile stocks, 20 minutes is an eternity during market open. TD has been a mess of a brokerage lately. This is coming from an elite client

    Might give other brokerages a try. So basically I should accept that any outages will come out of my pocket right?
     
  6. ajacobson

    ajacobson

    Maybe. What did they say? File a written complaint - document everything and send a copy to FINRA.
    Generally, on very volatile openings/closes they are not liable unless they were negligent in some fashion.
    You can always take them to arbitration.
     
    Last edited: Feb 1, 2020
  7. Doubt it. I recall acknowledging with signature something like, "..broker has zero responsibility for anything that happens over the net". IOW, all of the responsibility is born by the customer... and if that's not satisfactory, place your trades over the phone with a rep.

    I don't know what the brokers do when their computers go on the fritz and it "costs you". (??)
     
  8. You wont get anything, in their terms and conditions it states that they arent responsible for anything ... gotta love those terms
     
    TommyR likes this.
  9. trend2009

    trend2009

    in 2008, my order was expired but still filled by IB. I lost 8000 due to this, IB compensated 4000.
     
    #10     Feb 1, 2020