Broker freezes my acct upon wiring out funds to <$25k!!

Discussion in 'Retail Brokers' started by Option Trader, Apr 8, 2008.

  1. Does this make sense that it's not sufficient to have $25k in your account "at the time of" the trades--rather, if you are a day trader, then anytime within the next 90 days if you wire out funds and are left with below $25k they freeze your account??

    Please confirm if this is what's supposed to happen--before I say with which broker.
  2. who do you clear with?
    its not the broker its the clearing firm policy usually
  3. Bend over sir, i think you are being taken for a ride.
  4. The broker is self-clearing.
    Are you sure it's the clearance firm, and not the pattern day trading rules?
  5. Ok. The broker is IB.
  6. Ask IB to clear PDT flag on your account, they can do that once in 180 day period (per NASD rule).
  7. Takes 5 days; also, I don't think it's smart just to give up one's merit unnecessarily. The real question is if IB blundered.
  8. Wasn't aware of this.

    So if you're pdt, (as almost all are), and you drop below 25k, you get frozen even if you don't do multiple trades in a day?

    Doesn't sound right.

    Whats the actual story here.
  9. I think this is a stretch... but... if they freeze 10000 accounts with 20K in them each for this same reason in one year then they receive the interest on this float sum of $200,000,000... and if its ALSO frozen for an exact time period they are aware of - then can they lend it for short term market account rates...??

    just color me a little too Anti-Bank... when you have had an account at the BOA like i have had, as an example, for over 10 years, you see every which way you can be nickeled to death while they make money hand over fist...

  10. #10     Apr 8, 2008