Hit by IB (and SEC)

Discussion in 'Retail Brokers' started by ChrisM, Aug 8, 2003.

  1. ChrisM

    ChrisM

    One of my small accounts is traded with IB where I experiment with certain option complex strategies. Few weeks ago incidentally I close few trades during the day which resulted in freezing my account for five days ("day trading pattern").
    Since then I have not been placing any day trade transactions.
    Today I have found out that I am not able to open new positions again, including hedging trades which I want to place to protect my position. This time account is frozen for 90 days (!) due to new SEC regulations and the way how IB implemented this.

    1. I wonder what happens with whole business philosophy in US ? Why new regulations apply to the past ?
    2. While no notification from IB was given, is it possible to conduct business in US like this ?
    3. And the last questions - why to trade in US markets when both Brokers and Regulators treat traders like slaves ?

    Is it only my impression that whole business ethics in US has been slowly sliding down through recent years ?
     
  2. Would you care to specifically state what happened. Nothing in your post is concrete. Also, did you knowingly break any rules and is your account balance currently over $25k USD?
     
  3. I can appreciate your frustration and I am the last the bash a fellow ET`er. But if you do not know the rules you are at fault.
     

  4. Bro... as a citizen of the USA.... my sincere but unfortunate reply is: there never was much ethics in the U.S. markets or the regulating bodies, to begin with!!!!!!!!

    :eek:

    Frankly, the SEC is a disgrace.... as are most Wall Street houses.

    IB happens to be a great firm however, and although they ought to offer an explanation so as not to hurt you unnecessarily..... and yes the new options rules "suck"... I am sure they are merely and unwittingly following (their own disclosed rules and) the overriding, governing SEC regulations.... for these types of matters.

    Why not write an email/PM to "DEF" here on ET. He might be of some help.

    Bonne chance!


    Ice
    :cool:
     
  5. ChrisM

    ChrisM

    Looks like I`m wrong, sorry, but...

    I broke the rules incidentally few weeks ago and they froze my acct for few days, fine. I deserved that, mea culpa.
    But after that everything was fine for weeks untill today, because "new system was implemented" without any notification.

    Is this also my fault ? Hm, looks I am really in wrong evironment.
     
  6. taodr

    taodr

    You have to understand the markets really are rackets with rats trying to screw other rats. The biggest rat of all is government. Just look whats happening with oil prices. When oil drops around $28 a barrel the US. government is coming in the market and buying thereby driving the price towards $33. This is done under the pretext that they need to build oil supplies but every dummy knows if they waited they could buy below $25. Go figure.
     
  7. ChrisM

    ChrisM

    Don`t get me wrong - I am not born in US, but I have been living in US my entire adult life, so it hurts me as much as anybody else.
    Also, once I lived for years around NYC I know pretty well Wall Street environment.
    My impression is however, that things go worse through the years.
     
  8. ChrisM

    ChrisM

    Believe or not but I have been trading for over 10 years and no matter how bad it is some arrogance in the biz has been growing progressively.
    Those accounting scandals from last couple years were only the tip of iceberg.
     
  9. A long, long time ago I bought some stock while freeriding (I thought it was a great loophole) and I got hit with a 90 day freeze. The account freeze has existed for many years, but many brokers have not enforced it.

    I thought IBs system made it impossible to enter the final trade that may or may not violate the daytrader pattern rule (depending on when you exit)? Guess with certain option plays, the system can't catch it yet.

    The 5 day wait is simply the period which defines the day trader pattern rule. The 90 freeze, I believe, is the consquence for violating it.
     
  10. A hit, you are not the first one and certainly will not be the last. It is not only a SEC problem but also an IB. Yes IB!!!

    No More.
     
    #10     Aug 8, 2003