wait until the market closes.. at 5:30pm, in Account A enter order to BUY 3000 shares of TQNT on ecn MKXT 5 dollars below the current market price.. in Account B, Sell short those 3000 shares on MKXT.. now, in Account A enter a SELL order on MKXT for 3000 shares of TQNT at 10 dollars higher than the previous transaction.. then enter a buy to cover in Account B on MKXT.. you have just transferred 30k from account B to account A.. =) of course, the NASD looks very unfavorably on that type of thing.. a friend of mine used a similar technique to transfer money from his IRA account to his trading account.. his broker saw it and closed both of his accounts.. -qwik
I sent a $4400 bank check to them. Their cashier took it as $44. It took a while for them to "investigate" and then they simply told me to deal with that on my bank side(my bank, of course, already deduct the full $4400 from my account and had to wait for the check to clear and then resubmit to them.. Yes, each time, it took IB 10 business days. I wrote to their management to urge them use ACH.. They implement ACH but withdraw only, not deposit.
Don't get any ideas - if a broker suspects suspicious activity they will report it to the SEC. Here is a better source of the story. the SEC: The following comes from: http://www.sec.gov/litigation/litreleases/lr16852.htm SECURITIES AND EXCHANGE COMMISSION Washington, D.C. LITIGATION RELEASE NO. 16852 / January 3, 2001 SECURITIES AND EXCHANGE COMMISSION v. IN SHIG AHN, Case No. 00 Civ. 4416 (RCC) (S.D.N.Y.) INTERNET CROSS-TRADER IN SHIG AHN PERMANENTLY ENJOINED FROM COMMITTING SECURITIES FRAUD The Securities and Exchange Commission today announced that on December 29, 2000, Internet stock trader In Shig Ahn was permanently enjoined from violating the antifraud provisions of the federal securities laws by Judge Richard Conway Casey of the United States District Court for the Southern District of New York. According to the Commission's complaint, in early June 2000 Ahn fraudulently obtained over $180,000 by cross-trading between two on-line accounts he maintained at two different Internet brokers, Terra Nova Trading and Interactive Brokers. Ahn funded his Terra Nova account with $351,950 in bad checks, and in the several days before the checks bounced, he traded stocks with himself over an electronic communications network to intentionally create losses in his Terra Nova account and corresponding gains in his Interactive Brokers account. Interactive Brokers froze his account before he could withdraw the illegal proceeds. The SEC filed this action on June 15, 2000. At the same time, and for the same conduct, the U.S. Attorney's Office for the Southern District of New York indicted Ahn on criminal charges. In July Ahn pled guilty to securities fraud and wire fraud. In November he was sentenced to a year and a day of incarceration and ordered to pay $12,500 in restitution. To resolve the SEC action, Ahn consented to a final judgment permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Exchange Act Rule 10b-5. He had already disgorged $186, 401 -- all of his ill-gotten gains -- to the victim of his fraud, Terra Nova Trading. The Court did not impose civil money penalties based on Ahn's showing that he lacked the financial resources to pay. http://www.sec.gov/litigation/litreleases/lr16852.htm . ---- As for ACH, I think it is in the works (unless I am mistaken ACH for withdrawl and deposit should work the same). I don't know the time frame, cost of setting up, priority, details etc.
qwiktrade Did your friend actually get the money transferred to his trading account? I can't see why this would be illegal. Doesn't everyone trade amongst themselves? I thought this was normal trading behavior... Just kidding...
version77 yes, he was able to make the trades, and his broker did not break them before they gave him the boot.. but he created two problems.. first, because he was trading outside what had been the "market price" for the stock, it looked like he might be trying to "paint the tape".. if i remember right the NASD called his broker about the trades and thats why they closed him down.. second, when you take money from your IRA there are certain tax liabilities.. you arent allowed to circumvent the IRS.. =) he was not trying to break any rules he just didnt think it through clearly before he acted.. -qwik
qwiktrade I bet it was no fun paying the taxes on this one. Probably a 10% tax on the IRA, plus it could of put him/her into a higher tax bracket where the IRA would be taxed as ordinary income. Costly manuever. Plus painting the tape. Oops... :eek: