I'd say this is an important risk management tool for brokers. A stock that closed at 157.17 that traded as high as 189.40, should be treated differently than a stock that trades in a 3% range. We have not changed it yet, but I would not be surprised if we do later today or tomorrow. We have done that in the past.
I think they all will do it from time to time. I have a PM account and my broker will sometimes switch a stock to Reg T so I will no longer get PM benefits. Just happened to Kodak. I think its just a way for the broker to manage risk. I agree that some brokers may be more aggressive then others, though.
%% And since brokers tend to make more with margin; no doubt there is a real good reason for that. Put it simple; no money down[low or no risk to borrower] is a much higher home foreclosure rate . Its common sense.....................................................................