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Gold/Mining/Energy : Canadian Warrants Only -- Ignore unavailable to you. Want to Upgrade?

To: onepath who wrote (22664)	3/16/2021 5:11:06 PM
From: russet	Read Replies (2) \| Respond to of 23102

All the banks are freezing accounts as a standard practice now. It is not for our protection, like they say. I believe it is for their protection and to increase profits. When trades are made the brokerage must put up money to the exchange to partially cover the trade until the trade settles, and they are getting high volumes from retail now so they are giving a lot of money to the exchange until the trades settle in 2 days. They want to make sure we don't sell until the trade settles in two days so they freeze the account. We can't get in touch with them for hours so they effectively stop us from trading. They may have to borrow the money overnight to pay the exchange costs before the trade settles, so it could reduce their profit. The banks are also scared chitless of thinly traded stocks and warrants because trades can change the value of a stock or warrant very quickly. That could snowball into a market crash if not checked quickly. It can also go the other way and balloon a stock up quickly and then their computer trading can force the stock or warrant higher which can then crash the next day, so they could potentially get caught on the wrong side of a trade. Their orderly computer manipulated markets become the wild wild west. The banks know shareprices are in a bubble and a small ripple in the bullish stock market force could send the whole thing careening down. So they "manage" us by freezing our accounts so we can't trade quickly when thinly traded stocks are rising or falling. BMO was freezing my accounts almost every time I traded a warrant from last last October on. I sold everything down to cash in December and transferred the cash to my BMO bank account because the bank does that in one day. I pulled all the accounts except the RRSPs. Then I re established the TFSAs and the margin accounts with other brokers and transferred the cash electronically from the bank account. The 30 day rule is something between you and Revenue Canada and is only relevant if you are claiming your trades as capital gains. If you're a trader for income tax purposes it does not apply. The bank should not know which you are, so why would they tell you it was because of the 30 day rule, wash trade, and why wouldn't they just send you an email instead of freezing your account? If their computers had to follow the wash trade rule they would all cease to operate in seconds :-)