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Microcap & Penny Stocks : Dollar and Under Sleeper Stocks

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To: M, Anderson who wrote (8728)	2/7/2004 1:10:56 AM
From: Ga Bard	Read Replies (4) of 8835

I am leaving ETrade for the following reason which I just discovered through a friend of who got nailed by Etrade today. This post is to let everyone know of a situation that occurred today to a friend of mine that is just a hard working man and has only a cash account. He had a GTC order on a security he has owned for 4 months. The sell through Etrade of course was only partially filled twice again 2 partials on 7759 shares on a .10 stock. I have learned Etrade always seems to do this type of trading with believe me tons of excuses. I mean that is normal in my experience so they can get double the commission on a trade. Anyway once the sell and the money were completed and the money added to his account, he attempted to buy another security. However Etrade would not allow him to make the trade due to insufficient funds. Upon calling me I never heard of such nonsense ... So I called Etrade and as my friend stated ETrade now has a policy that if your sell you cannot use the cash in your account till the 3 day clearance. In other words they hold your money hostage ubtil the trade clears THEN you can buy another security. At first they hit me with the 2520 regulation which is the day trading reg and does not apply to cash accounts. Once I resolved that issue they came up with the lame excuse that reg T which is another day trading regulation to prevent trading on free money. The longer I talked to E8Trade I got the feeling that Etrade wants all accounts on margin so they can gain revenues in interest on the margin and whatever else they can come up with to take your hard earned money. I pulled up the regulations and no where does it state what Etrade is doing is even a part of it. Unless you trade in accordance with the regulation so your account is considered a day trading account these regulation have nothing what so ever to do with cash accounts.. Frustrated with reading the regulations on the phone and even making it to a supervisor E8Trade flat will not let you trade on and money until the trade is settled. SO my frind has money but cannot trade on it till the coming Wednesday ... Unbeleiveable. I call the first discount broker Ameritrade and sure enough they have the same policy. SO I made another call on this regulation to a professional and was informed I was right and both ETrade and Ameritrade are NOT following the regulations they state but sounds mor elike a stunt to get more margin account for the interest and/or fees and the deposit for a margin account. IN MY OPINION ETrade and Ameritrade wants all accounts on margin to gain the deposit and the interest. By doing this little clever misinterpretation they have been since December limiting the small investor to not be able trade until 3 days after a sell I would assume their margin account hve increased drastically. Of course which in fact they hold your money hostage whichAGAIN messes up your account if you are a mer joe public.jOE pUBLIC. As I continued on I was told to call Scotrade because they follow the regulation and their service and pricing are very good. I did and low and behold they read me their policy which was dead in line with the regulations. If you sell a security of course the clearance is 3 days. BUT at Scotrade, Citicorp & Siebernet they all have the same exact policy. When you sell yes it takes three days BUT you can trade on that money since the trade you make will also clear in 3 day so there is no penalty and no breech of a regulation it is a wash. Now the one problem is if you trade on the unclear money and decide to sell before the original money is cleared you will be on restriction and probably have to send in the money for the trade. SO do not buy and then sell to cover the purchase. Always sell to get the cash in the account before you spend what you do not have. This newest and totally unfair practice of ETrade I will be moving mine and several others who are not happy about this new policy that Etrade has been using since December to hold your cash available money hostage in a hope you will open a margin and then face all the interest and charges associated with a margin to Scotrade. After reviewing the charges (Fees Inerst & COnnisiions), Scotrade shines above them all but again I only found two that are trying to make the totally unfair practice law regardless of anything. Again I will definitely be moving my accounts starting as soon as possible to Scotrade and get away from Etrade and all their so called legal policies intrepretations. Research it yourself and you will discover E8Trade is one of the worse on line brokerages there is Further Scotrade is 7 dollar a trade and .0005 fee of the principal. A $2000.00 order regardless of market or price is 7 dollar plus $10 fee which is 17 dollars where E8Trade is 19.99 plus that 300 charge for the ticket or whatever it is for. Scotrade saving is 22% below ETrade Further which Etrade Etrade id s ntolrt zmm et. and Scotrade is not a MM either. Just thought you would like to know the development today which is why everyone I know is going to leave E8Trade so they can trade without having to or being forced to open a margin account and have to follow the day trading regulations. The contact at Scotrade is Jeremiah Clark & did not write down the contacts at Ameritrade, or SirberNet. or CIticorp. Do your homework on this matter and I think you are going to get a real surprise what is going on. Gary

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