Suit filed against Ameritrade for slow execution Suit says Ameritrade was too slow BY STEVE JORDON WORLD-HERALD STAFF WRITER A telecommunications company has filed suit against Ameritrade Holding Corp., alleging that the Omaha online brokerage caused losses by carrying out stock trades too slowly. Telco Group Inc., of Flushing, N.Y., had filed the complaint in New York in April, but it was transferred this month to U.S. District Court in Omaha. An Ameritrade spokeswoman said Wednesday the company does not comment on pending litigation. Telco said it had placed orders to buy or sell stock through an Ameritrade account, expecting the orders to be carried out within a few seconds as Ameritrade promised. But the orders were delayed, sometimes for more than an hour, and as a result the prices were less favorable, the lawsuit said. In one example listed in the lawsuit, Telco placed an order to buy 175,000 shares of NASDAQ stock on Jan. 7, 2004. The high price when the trade order was received was $37.54 per share, while the low price was $37.53. The transaction was received at approximately 3:05 p.m. but was not executed until 4:20 p.m., according to the lawsuit. "As a result of Ameritrade's failure to process the trade promptly and at the best possible price under the circumstances . . . Telco lost $26,250," according to the lawsuit. Trading delays violate Ameritrade's contract with its account holders, Telco said, asking the federal court to declare the lawsuit as being filed on behalf of all Ameritrade account holders as a class and to award damages of $100 million or more. Another class-action lawsuit against Ameritrade is pending. That lawsuit was filed by David Zannini of Angier, N.C., and three other Ameritrade customers who said the glitches in Ameritrade's online system were caused by "antiquated and inadequate systems and an insufficient number of employees" to help customers make trades. That action is pending in Douglas County District Court. The dismissal of another class-action lawsuit against Ameritrade is on appeal to the Nebraska Court of Appeals. That lawsuit was filed by Mitchell Green of Los Angeles, who agreed in 1998 to pay $20 a month for an Ameritrade service to get real-time information on stocks and options. His lawsuit, however, alleged that the information on the options - agreements to buy or sell a stock at a certain time or price - was "stale." Douglas County District Judge Gary Randall recently ruled that Ameritrade's promise to make "real time" trades did not amount to a contract with its customers.
I get it, so they promise something, they screw you, then you have no recourse because "a promise is not a contract". Who would want to keep money with this firm?
Leave it to you to post "claims" from 5 and 10 years ago . . . Buzzy, you clearly sound like you have an "axe" to grind.
it's very clear from this thread that if ameritrade doesn't maintain all of tos' tangibles and intangibles, they will lose 95% of their customers. in which case you have to ask, what did they just pay $600m for? some software apps, some employees, a website, and investools? there's no way those things are worth $600m.
As someone that was a former floor trader on the NYBOT, I would say that you are rather naive in claiming that ES and CL futures tax a date-feed more than some equity quotes . . . Thus, the premise that you are using ( Futures vs Equity quotes ) is absurdly naive. Ever watch the SPY's trade? Ever see how many quotes need to be refreshed, not too mention by tons of market-makers? Ever see how fast the SPY's trade when programs hit the market? Guess not. Cause if you had first hand experience with this, you wouldn't be making the absurd premise ( and conclusion ) that you claim.
Whatever, TD Ameritrade is the broker from hell. They are not only incompetent they are bullshitters and liars. I would not keep money with anything or anyone associated with that firm. Even eTrade is better than Ameritrade. Not that I would open an account with eTrade either.
I'm sorry, but I must have missed the post in which you said you were a CURRENT TD Ameritrade customer. Thus, your claims have absolutely ZERO relevance whatsoever to current AMTD customers such as myself, and your "cut and paste" article from a telco company ( NOT A TRADER ) that is 5 years old is a total joke. I have first-hand experience with trading very aggressively with AMTD via Quotetracker. Moreover, I have used their platform since last April and referenced their quote feed with a subscription to DTN's "IQ-Feed" for the last several months, unlike you . . . who simply throws a bunch of third-hand 5 and 10 year old claims against the wall, praying and hoping that your slander will stick in the mind of some unsuspecting Trader. Congrats! You act like a 2 year old crying in the corner because his Mommy took his candy bar away.
I must have missed the post where you identify yourself as the resident TD Ameritrade shill... All your posts are biased in favour of AMTD... so we know you are not being completely honest. So if I post I don't like AMTD it was only a matter of time the resident AMTD shill started to personally attack me. Why not use Ameritrade? http://www.elitetrader.com/vb/showthread.php?s=&threadid=122427 incompetants at Ameritrade still streaming BADLY LAGGED L2 http://www.elitetrader.com/vb/showthread.php?s=&threadid=117073 Do folks like TDAmeritrade? http://www.elitetrader.com/vb/showthread.php?s=&threadid=86160