Tradestation: Anyone who works in insurance is a Professional

Discussion in 'Retail Brokers' started by Actuarial_Fun, May 28, 2024.

  1. So I just heard from Tradestation that I will transferred to be a Professional subscriber starting end of month. I clearly emailed them the response of my job and position, told them I'm not a professional, and they came back and said I was.

    I called customer service to withdrawal my cash and cancel my account, but first asked why I was professional. They said they didn't know but they said EVERYONE that works in insurance is a professional. I asked marketing people, sales people, custodians, all professionals? They confirmed. This is not a joke.

    On a side note, I was using Futures Plus which was a nightmare anyway. I sometimes did some Futures options there. There balances were always incorrect and it would be impossible to understand current buying power, current balance, etc. Only EOD trade confirmations were clear. So it was a garbage site but I had 10K in there so I occasionally did some trades. I'm not paying professional fees when I'm clearly not a professional. Just nuts.

    Should I be reporting this massive misunderstanding (e.g. all people in insurance our professionals) to CFTC or SEC? My money is already out but I do care about integrity of future customers.
     
    zdreg and murray t turtle like this.
  2. zdreg

    zdreg

    Google imsurance ....+professional investor
    Call compliance
    Call another brokerage firm

    rinse and repeat.
     
  3. SunTrader

    SunTrader

    https://www.sec.gov/tm/faq-regulation-best-interest

    Q: For purposes of the definition of retail customer, who would be considered a legal representative?

    A: The Commission interpreted the term “legal representative” to only cover non-professional (i.e., non-regulated) legal representatives. Examples of non-professional legal representatives are non-professional trustees that represent the assets of natural persons and similar representatives such as executors, conservators, and persons holding a power of attorney for a natural person. A non-professional legal representative is covered pursuant to this rule even if another person is a trustee or managing agent of the trust. A workplace retirement plan representative (e.g., plan sponsor, trustee, other fiduciary) generally is not considered a non-professional legal representative of a natural person, except in limited circumstances (e.g., where the plan representative is a sole proprietor or other self-employed individual who will participate in the plan).

    If a legal representative is a regulated financial services industry professional, he or she would not be covered by the definition of “retail customer.” Examples of regulated financial services industry professionals include registered investment advisers and broker-dealers, corporate fiduciaries (e.g., banks, trust companies and similar financial institutions) and insurance companies, and the employees or other regulated representatives of such advisers, broker-dealers, corporate fiduciaries and insurance companies. In the staff’s view, a legal representative who is formerly a regulated financial services industry professional, but who is not currently regulated, would be considered a “non-professional” legal representative that would be covered by the definition of “retail customer.” (Posted February 11, 2020)

    + + +

    I read that as; if one is not a retail customer they are a professional. But I have no expertise in the matter whatsoever.
     
  4. mervyn

    mervyn

    you probably fill out your annual statement wrong. no-pro vs pro has nothing to do with your profession but affiliation.
     
    murray t turtle likes this.
  5. schizo

    schizo

    This is a guideline from Interactive Brokers. I think the only one that might apply to you is the line that's in large font ("acting on behalf of an institution that engages in..."), but I ain't sure acting on behalf can be construed as being employeed by.


    If any of the following criteria are met, the user/usage is classified as Commercial (aka Professional):
    https://ibkrguides.com/kb/guidelines-on-market-data-subscriber-classifications.htm

    • Is registered/qualified with any national or state exchange, regulatory authority, professional association or recognized professional body (e.g. FINRA, NFA, CSA, IAPD, et al.).

    • Has a job that entails the buying or selling of securities or commodities on behalf of their employer.

    • Has a job analyzing market data to make investment/trading decisions on behalf of their employer.

    • Is employed as a broker/dealer, Financial Advisor/Investment Advisor/Money Manager or Wealth Manager.

    • Account is not in the name of a Natural Person (i.e. in the name of an entity, commercial business, or public organization etc.).

    • Is acting on behalf of an institution that engages in brokerage, banking, investment, or financial activities.

    • Is a subcontractor or independent contractor for a company, where they use market data to make investment/trading decisions.

    • Is an ORG accounts (all will be marked as Commercial (i.e. Family Office Account/Small Business Account/Fully or Proprietary Trading Group Account/Hedge & Mutual Fund Accounts or other ORG accounts)).

    • Account is an investment club that receives or does not receive compensation.
     
  6. Robert Morse

    Robert Morse Sponsor

    Do you hold any insurance license? What is your role?

     
    murray t turtle likes this.
  7. No, I don't hold any insurance licenses. I am an actuary and certainly have never worked with financial securities. This is from their email, "A review of your account has identified you as a registered broker or qualified with a securities or commodities regulatory, self-regulatory, or state agency. All registered brokers are to be classified as professional."

    I explained that I am not a professional and gave them my company name and my title. They said I was a professional. Just makes no sense to me.
     
    murray t turtle and athlonmank8 like this.
  8. maxinger

    maxinger

    There are hundreds of brokers in this world.

    It is not good for your health to try to argue about the
    professional title.


    Have you tried other brokers?
     
    Actuarial_Fun and athlonmank8 like this.
  9. Thanks. Agree that would be the only one that could apply, but as you are say in the message, I'm not acting on behalf of an institution, I'm just employed there. So custodial staff at insurance company are professional traders now? Makes no sense. It was a gift. I should have pulled my money from Tradestation months ago when I saw how horrible their account balances were.
     
  10. Robert Morse

    Robert Morse Sponsor

    I agree with you.

     
    #10     May 28, 2024
    Actuarial_Fun likes this.