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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: tom pope who wrote (83234)	4/18/2007 7:11:32 PM
From: Wyätt Gwyön	Read Replies (4) of 206325

this time it's with Fidelity, but i've had the same problem with Schwab. i decided the best thing is to keep accts in multiple places and then move money to the borker where i don't have a violation. these violations are actually quite difficult to avoid. let's say you already have 2000 shares of SU and buy another 1000 with settled funds. then tomorrow you sell 1000 shares and use the funds to buy COS. Schwab (and probably Fido) will say you sold the 1000 shares of SU you bought yesterday (where the funds are not settled) and put the proceeds into COS, and therefore your new purchase of COS is a settled funds violation, even though you have 2000 settled shares of SU which they could draw from to avoid the restriction. this is beyond idiotic. one interesting twist this time around is Fidelity put the trade restriction on ALL my cash accounts with them (i have several IRAs with them). every one of the accounts has this restriction even though the violation just occurred within one acct. i discovered this the other day when i sold SU out of a small IRA i have there and tried to buy COS with the proceeds. even though i haven't done a trade in that acct in over a year, it had the same trading restriction (can only buy with settled funds). LOL! that is just ridiculous. before at Schwab, they only put the restriction on the acct where the violation occurred. i complained to Fido about this and they said Schwab does the same thing as Fido, but not in my experience. Fido "sympathizes" with me and says they don't make money when i don't trade (in the acct with the violation, i have something like 358 trades on a rolling 12-month basis). but the reality is with this violation in place, i am forced to keep extra money in their stupid MMF that i would rather have deployed in currency ETFs or T-bills. because they swipe 45bp off the top of this MMF cash, they are actually making more money off me in the MMF than they are by my trades. they would rather i never trade at all and just stay in FDRXX all the time, LOL! this is why i believe my only solution for cash accts is to have multiple accts at different borkers, and shuttle the cash between them. now THAT costs them money.

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