Friday, December 3, 2010

Final Scottrade Post

Some of you will likely be happy today because I will no longer be talking about Scottrade after today.  I guess this whole mess has in a way come to a conclusion today after I talked on the phone to Scottrade's compliance office this afternoon.   I was informed that there was a mistake execution of my original stop loss back on November 7 or 8 and that they had to "bust" the execution (reverse it) because it was an error.   I was then told that they do attempt to tell customers when this occurs but are not required to do so.  For some reason, "the ball was dropped" and I was never informed.

I asked the officer what I exactly I did wrong in this whole mess, and he told me "nothing".   He also told me that Scottrade will not be reimbursing me for my losses - basically I am out of luck.  I can try and write a letter requesting reimbursement, but realistically, nothing will happen.  I am out the money lost because of an error on their part.

So to review, an execution of a stop loss order was first messed up (by either Scottrade or their trading/executing partners) and then the attempt to contact me about the first mess up was messed up as well.  I am out over $1000 on this position through no fault of my own, and even though Scottrade admitted it was their fault, there is nothing that they will do about it. $1000 may not be big a big amount to a lot of traders out there, but my accounts are only in the low five-figures so for me, when you lose 5-10% of your account on one trade (through no fault of your own), it does suck.

I apologize if my market posts have been shorter or less focused recently, but this event has really thrown me for a loop, so much that trading hasn't really been something I would have wanted to do anyway over the past week even if I was able.   Those of you who suggested brokers for me to check out, I do thank you - that research will begin in earnest I guess now.  Have a good weekend and I'll be back with a video at some point.   Take care.

10 comments:

Anonymous said...

Can't you take them to arbitration?

tbird2252 said...

Sorry this happened to you. The proper response for Scott... to retain and grow your bus. w/them is to eat the loss but I surmise Roger Riney is too busy flying around in that damn helicopter to care...

FWIW, i have been w/Scott... for fifteen year with three accounts. Last month I closed one and switched to Think or Swim for the trading platform and research tools. Been there a month and still learning but very impressed. There is a link with TOS where you can monitor daily live trades with Shadow Trader...Much better platform and all around experience @ least so far. Good Luck...

Anonymous said...

I have an account in the low seven figures, and if my brokerage tried to stick me with a thousand dollar loss of that nature (or a hundred dollar loss of that nature) I would react most ungraciously...visualize the way Jack Nicholson responded to Faye Dunaway regarding her sister/daughter.

As previously mentioned, Siebert is relatively expensive BUT good as gold when it comes to rectifying mistakes. I pay extra for the peace of mind that accompanies dealing with ethical people.

I am sorry about what happened to you and wish you well. And thank you for your analysis, which is greatly appreciated.

Anonymous said...

i can tell you that with the great work you do on stocks, that $1000 kick in the a$$ will be a tiny rounding error on your future account value and success - keep up the great work

Anonymous said...

This I know for sure, the amount of business they lose from your posts will definitely be over $1000. I personally will never use scottrade after hearing about this.

Anonymous said...

Thank you for sharing this story with us. This is what every trader needs to know - who is who in the brokers' world.

Thank you and good luck in your trading.

Anonymous said...

its mini-me from hong kong again. the result pissed me off.

we in hong kong, all brokers are under SFC (securities n futures committee), if u make no mistake and the broker reverses it without your conscent, u get compensation.

im angry with your case that, u are unprotected by any scottrade policies.

Mac said...

Thanks everyone for your comments - I am going to try and file an arbitration claim with FINRA - I just have to do some research on how the procedure goes.

Bottom line is Scottrade's customer service is an absolute joke and their execution is spotty because that's what caused this whole mess in the first place.

If you can pass these posts on to any friends or fellow traders, please do - I would like as many people as possible to know about this situation so hopefully no one has to go through it again. Thanks.

Anon Y. Mous said...

Mac,

First, let me please apologize to you & your readers for bringing up an old thread. I wish I had been following your site long ago. If I would have seen your posts about Scottrade, I might also now have my account with a different broker.

Yesterday (Jan. 5, 2011), Scottrade implemented their new Java interface for charting. As I am a novice trader, I rely on their charts using my own custom set of indicators to time my executions when I do trade (I do not have a margin account and trade weekly at most).

Since Scottrade implemented their new system, NONE of the chart functions have worked properly. I have contacted the national customer service line, my local broker office, and have had contact with their tech support via their in-account email system. All I've gotten is hollow "apologies" with no explanation of why they did not stick with the old, functioning system before implementing an improperly debugged new system.

From what I've read on your site, not only do they screw up on executions, follow-up, grievance resolution, and customer service, but now they have also effectively left their clients blind.

Thanks for your analyses. I will definitely look into the other brokers recommended here.

Does anyone know how to sabotage that Scottrade helicopter? (Joking...joking...)

Cheers & Good Luck to all!

Mac said...

Thanks for your comments - your story doesn't surprise me. They supposedly "pride" themselves on customer service. I didn't happen to see that in my time there. I have switched and don't think I will miss them. I still have to switch my IRA accounts though. Best of luck and get out while you, I guess.