Td ameritrade refuses to upgrade option Tier 2 – Standard Margin!

Discussion in 'Options' started by jaylon, Jun 11, 2019.

  1. jaylon


    Td ameritrade rejects the option Tier 2 – Standard Margin upgrade, need to provide labor certification, salary scale, low-level options can not use platform trading strategy, who has such experience?
  2. Robert Morse

    Robert Morse Sponsor

    We have financial requires for each option level except level 1, most brokers do. You need a minimum income, net worth and net liquidating equity.
    coplii likes this.
  3. What are those different tiers you are speaking of? You mean level 1 and level 2 market depth? Never heard of any level or tier when it comes to categorizing options traders.

  4. Robert Morse

    Robert Morse Sponsor

    Option levels.

    coplii likes this.
  5. This is ridiculous if true. So, brokers try to glean whether there is any money to be collected should a client bust his account and then some? Perhaps limiting risk in the first place is a more prudent option.

    Last edited: Jun 11, 2019
  6. Robert Morse

    Robert Morse Sponsor

    FINRA requires suitability for each level.
  7. the land of the free where people have free personal choices is not that free after all. The government dictates what is suitable for each individual. Funny. No suitability tests for buying alcohol and gambling but can't trade futures options and fx and and and. Perhaps suitability is better assessed by testing the knowledge of the product not money in the checking account that can't be touched by financial firms in almost all cases anyway.

    Anyway, thanks for explaining.

    d08 likes this.
  8. jaylon


    Yes, the platform determines the customer investment, the index can not be traded, the option can only choose the lowest level, the upgrade needs to provide the labor certificate, the salary scale, the low-level option can not use the strategy, can only buy the unilateral put option ~ customer service will also require You do more unilateral quotes, the review team decides to review based on the position of the position after you open the position! I chose a margin account transaction and still do~~
  9. jaylon


    This is TD Ameritrade email reply, who has the same experience as me~

    Your account ending in——
    Important information about your recent options application

    Thank you for sending your request to trade options in your account ending in——. However, based on a careful review of your investment objectives, risk tolerance, experience, and other information you provided on your application, we are unable to approve your account for options trading at this time. You can verify the information you provided by logging in to your account and going to Client Services > My Profile > Investor Profile. You will also receive a letter containing that information within the next few days.

    If the information is complete and correct, and you would still like to add options privileges to your account, you can reapply 90 days after your first request.

    If any information is missing or incorrect, or if you have any questions, please log in to your account and go to Client Services > Message Center to write us. You can also call Client Services at 800-669-3900. We're available 24 hours a day, seven days a week. With new information, we may be able to reevaluate your request.

    If the financial information on file is incorrect, please submit a copy of a:
    • Current W-2 or
    • Pay stub or
    • Bank/brokerage statement.
    If the experience information on file is incorrect, please submit a copy of a:
    • Brokerage trading statement matching the number of years listed as your experience.
    Please include a signed Letter of Instruction stating that the support document is being submitted for options upgrade review.

    You can fax the requested paperwork to 866-468-6268 or mail it to:

    TD Ameritrade
    PO Box 2760
    Omaha, NE 68103-2760
  10. gaussian


    Why is this a problem? They can't limit the ever present risk of the client being a degenerate gambler and blowing their cash on a stupid play. They can only insure the person can cover up to their losses.

    You want to trade with the broker. The broker's requirements are that they (really the clearing corporation) isn't stuck with a bounced check and nothing to pay out. Are you implying it should be okay for you to not fulfill your end of a contract? How would you feel if the other end of your massive SPX play didn't get paid out because the guy didn't have enough money? You'd probably be livid!

    When I buy a bottle of whisky at the local liquor store I pay in full. I don't get margin to buy 9,000 bottles of whisky deliverable in 3 months. You'd be certain to have some financial checks if that was true. When I gamble at the casino I pay in full, if I am staked they will credit check me (cage staking at least) and I can be certain to have people collecting on me if I fail to pay my debts. Another (better) case you could've used was housing - but after 2007 the level of financial checks required to get a mortgage is absolutely insane.

    As for the OP, sounds like you need more cash in your bank account and a better job to trade spreads. You might be able to ask them exactly what it was that made them reject.
    Last edited: Jun 11, 2019
    #10     Jun 11, 2019
    eo1989 and dealmaker like this.