Beware CyberTrader PDT jail! I'm in it...

J

JimBecker17

....and must be a criminal! At least I feel like one..

Two months ago I accidently triggered the PDT rules closing out some trades shortly after opening them.

This triggered an email saying I had to change my target from Growth to Speculation, which I did - figured no big deal.

However they locked out my account, which I found out only five weeks later - when next tried to trade.

This resulted in multiple instances of having to "resubmit my financials" and being denied for not having "minimum account requirements".. I've also told them am not intending to be a Day Trader.

Of course they will not tell me, or Schwab representatives, why "the man behind the curtain" denies me access. They will not inform either of us what the problem is. I am a full time trader with my own company and funds.

So now have removed Margin and now PDT status from my account, and perhaps will be able to use it...

My account balance is a significant multiple of $25K, my only use of margin has been a few short positions, and of course have had money with Schwab for twenty or so years....

They will not tell me _why_ I am denied, and keep telling me to resubmit financials. The definition of insanity is expecting a different result from the same input, thank you...

Their assumption is the customer will "game" their financials if they knew the rules used to obtain approval. Yes, we are all liars.

SO WHATEVER THEIR RULES ARE, ASSUME YOU ARE NOT AWARE OF THEM IF YOU FALL UNDER PDT STATUS AND MIGHT LAND IN JAIL AS WELL.... Hopefully your experience will vary.

As a compliment the Customer Service people have been professional and friendly, but Mr. Wizard in the back room seems to not like me and will not talk to me... :)
 
I dont get it. If you have multiples of $25k in your account, why do they care if you are PDT as long as you meet the $25k minimum?
 
Well first they say they need to meet the SEC requirements, but then say they have "stricter" requirements as well. However they are opaque in terms of these. This is what bugs me more than anything.

I've tried to get a hint what the problem might be, but have not been successful. It may have something to do with my accounts being under my personal name but also DBA my company name.

Would be strange though that someone going through the rigor of creating a business for trading would be denied compared to someone trading "on the side" of another profession.
 
I trade with Cybertrader. My recollection of their rules is that in order to daytrade, you must declare yourself as a pattern daytrader upfront. Also, I believe that you need to set the account up as a margin account. I think this has something to do with how the trades are cleared. A cash account takes longer to clear the funds ( I think). So you need to declare yourself a pattern daytrader (there may be a form) and also fill out the forms designating the account as a margin account. I have way less money than you do, and I have never had any problem.
 
They won't cooperate with you; dump 'em.
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Plenty of other brokers, why waste your valuable time arguing with them. Just open an account elsewhere and transfer your money.
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With the kidna money you're toss'in around, I don't know what you're wait'in for :confused: ??#!?

Are you afraid to leave them or something? Do they have some kinda hold on you? Do they have extra special charts or data feed services or brokerage fees?

Get real. :(

Later,

Jimmy
 
I agree. I do not think your past "prison" record will follow you like a credit report does.

Say bye to Chuck and work with a firm that is more trader friendly.
 
Quote from JimBecker17:

....and must be a criminal! At least I feel like one..

Two months ago I accidently triggered the PDT rules closing out some trades shortly after opening them.

This triggered an email saying I had to change my target from Growth to Speculation, which I did - figured no big deal.

However they locked out my account, which I found out only five weeks later - when next tried to trade.

This resulted in multiple instances of having to "resubmit my financials" and being denied for not having "minimum account requirements".. I've also told them am not intending to be a Day Trader.

Of course they will not tell me, or Schwab representatives, why "the man behind the curtain" denies me access. They will not inform either of us what the problem is. I am a full time trader with my own company and funds.

So now have removed Margin and now PDT status from my account, and perhaps will be able to use it...

My account balance is a significant multiple of $25K, my only use of margin has been a few short positions, and of course have had money with Schwab for twenty or so years....

They will not tell me _why_ I am denied, and keep telling me to resubmit financials. The definition of insanity is expecting a different result from the same input, thank you...

Their assumption is the customer will "game" their financials if they knew the rules used to obtain approval. Yes, we are all liars.

SO WHATEVER THEIR RULES ARE, ASSUME YOU ARE NOT AWARE OF THEM IF YOU FALL UNDER PDT STATUS AND MIGHT LAND IN JAIL AS WELL.... Hopefully your experience will vary.

As a compliment the Customer Service people have been professional and friendly, but Mr. Wizard in the back room seems to not like me and will not talk to me... :)
More...

Would your account balance still be in excess of $25,000, if all your shorts and other positions were liquidated?
 
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