The real problem for you is that you DID put a limit order in. Also did you have the order GTC or just put it in as the index fell (or went higher). Had you put a market order in, the execution should have been instantaneous although possibly suffering the same loss. When you say "popped it out of system" what do you mean? Your order was not accepted immediately? With a limit order you never know if you will be filled, as a retail customer you are ahead of BD's but other retail customers may have been in the que before you and filled while the index dropped like a rock. re-read all your agreements that you signed when moving your money there. Arbitration will most likely not be in your favor as most cases are settled in favor of the brokers. However persistence does pay and if you have been a good customer they may want to keep you.
If your limit order was marketable, and your story seems to imply that it was in fact marketable, then the fact that you entered a marketable limit order instead of a market order should not have prevented you from getting executed and should not affect your legal rights.
hi, they have done the same thing with market orders. Last week I had a market order they reviewed for 9 minutes. By sheer chance I was not hurt. When Schwab decides to review an order they do not let the customer know. With a market order they will not let you cancel no matter how long they review. Pretty dangerous !! My understanding is that they have an old main frame system that scares them to death. So they review a lot. If they are going to be in the options business and they advertise their great services perhaps their service should match their claims. I have been with them for 15 years (not for options though) and have a substancial account; they have not accomadated.
It is a fast moving index, but I assume you have to call market direction accurately under your method. How do you reliably take advantage of the NDX near expiration? Don't you ever get slain choosing a market direction?
So this is going to sound really rude and cruel but, if you've been with them for 15 years and know that they occasionally review orders for no apparent reason and for long periods of time (long relative to how fast the market moves), then there's no reason they should reimburse you and there's no reason for you to complain. At this point for you it's a known risk that you are for whatever reason accepting by staying with them.
I think the broker has a fiduciary duty to make reasonable efforts to execute orders in a timely fashion. I think the customer's past tolerance of a broker apparently breaching this duty did not cancel the customer's rights. I think it merely reflected the fact that the customer was naive and did not understand its rights. I think that the customer is entitled to reimbursement and should demand it. I think that the customer should pursue arbitration, but should also pursue official complaints to the exchanges which regulate the broker, and have the power and the duty to take disciplinary action against the broker.
mostly really nice ,smart people here and some who speak without knowledge. i have only been doing OPTIONS for the last 8 or 9 months with them. i complained at the highest levels and they promised to see what they could do, including offering me direct access which they generally do not do. But I have a substancial account with them. Obviously I followed up but shortly thereafter I had this 17 k problem. The gentlemen who said they have a fiduciary obligation is right. I made them aware of the problem, they did not follow thru. i asked them repeatedly how to limit the problem. if anyone thinks that it is reasonable for any client to wait up to 9 minutes is not in touch with reality. As amatter of fact I saw a message from Friday from Schwabs attorney seeing if we can settle before the preconference hearing. for all of you who understand the problem i appreciate your thoughts
Please don't get me wrong, I really do hope you get your money back because it's ridiculous what they did. I was just saying that you might have a harder time since you knew that they do things like that and that you can't plead ignorance... Good luck though. Sincerely, MPO