Etrade horror story

F

fencerd4

There are serious issues with etrade's platform that needs to be
addressed and how the company will lie and deceive their best
customers to avoid eating a loss. Before the market closed on Friday,
I placed 50 put option orders on FAS with the Etrade Power Pro.
Immediately after placing the market order, the platform froze on me.
After checking my order status, I saw that I was a proud owner of 150
puts. I immediately contacted their trading desk and spoke to Phil
Mihylo, and he (swear on my family's life) reassured me that the trade
would be reversed and there is nothing to worry about because they
kept a record of me calling in last week to complain about the same
platform issues. I called again that night and was reassured by
another representative that they are working on the matter and I would
have to wait on Monday. After seeing 23 puts reversed, I thought they
are just waiting for the market to open on Monday so they can reverse
the trades.

Yesterday morning, after a sleepless Sunday night, I called and Phil
told me they are working on the problem, and I can take market action
if I want and they would write the loss, if there is one, off in their
expense account. I just got off the phone with them, they refused to
write-off the extra trades caused by their system.


Result I lost $1540 from the extra 77 puts. I am a very active trader
and has already traded 89 times in one month, generating over $2000 of
commissions for this company. I don't want to comment further, but I
will make it my mission to post my horror story in every message board
I can find.


My Commission: $9.99
My Options Contract Fee: 0.75
My Trades this quarter: 89
End of quarter: March 31
My Trades last quarter: 0


03/16/09 9:33 AM EDT Sell 112 FAS Apr 5 Puts Executed @
$1.1 Details | Edit
03/16/09 9:33 AM EDT Sell 5 FAS Apr 5 Puts Executed @ $1.1
Details | Edit
03/16/09 9:32 AM EDT Sell 10 FAS Apr 5 Puts Executed @ $1.1


03/13/09 5:04 PM EDT Buy 12 FAS Apr 5 Puts Execution
Reversed Details | Edit
03/13/09 5:04 PM EDT Buy 11 FAS Apr 5 Puts Execution
Reversed Details | Edit
03/13/09 3:59 PM EDT Buy 35 FAS Apr 5 Puts Executed @ $1.3
Details | Edit
03/13/09 3:59 PM EDT Buy 10 FAS Apr 5 Puts Executed @ $1.3
Details | Edit
03/13/09 3:59 PM EDT Buy 15 FAS Apr 5 Puts Executed @ $1.3
Details | Edit
03/13/09 3:59 PM EDT Buy 9 FAS Apr 5 Puts Executed @ $1.3
Details | Edit
03/13/09 3:59 PM EDT Buy 12 FAS Apr 5 Puts Executed @ $1.3
Details | Edit
03/13/09 3:59 PM EDT Buy 11 FAS Apr 5 Puts Executed @ $1.3
Details | Edit
03/13/09 3:59 PM EDT Buy 8 FAS Apr 5 Puts Executed @ $1.3
Details | Edit
03/13/09 3:59 PM EDT Buy 20 FAS Apr 5 Puts Executed @ $1.3
Details | Edit
03/13/09 3:59 PM EDT Buy 30 FAS Apr 5 Puts Executed @ $1.3
 
I'm not a lawyer or anything, and i don't know if its worth for $1500 - but if you are on a mission you could go for NFA arbitration.
 
Quote from fencerd4:

Result I lost $1540 from the extra 77 puts. I am a very active trader
and has already traded 89 times in one month, generating over $2000 of
commissions for this company.
More...

This is incredibly small time...
"Very active" traders will make 89 trades in one hour.

Nobody will ever care about your alleged "$2,000 of commissions".
 
you are probably screwed. They most likely have a clause in the new account agreement that deals with connection issues.

The error (error account, not expense account) is probably larger than any commission you would generate. They are just hoping you go away.

You can try to bug them non-stop. If you force them into arb you may be out of pocket 20-25k.

I would move my accounts away from them
 
Quote from fencerd4:
Immediately after placing the market order, the platform froze on me.
More...
You placed a market order (as opposed to a limit order) to buy 50 options contracts at 3:59 p.m., is that correct?

By the way, if you have 89 trades in a month, you are not an active trader, much less a 'very' active trader.
 
One more item:

The correct procedure for this is to take the "error" and move the trade into an error account and sell/buyback the position. Not leave it in your account. If they decide it's not their fault, they will charge you the difference.

Somewhere in your conversation you must have agreed (you probably didn't even realize it) that you would just sell the position. Now you are stuck with the sell trades.

Unfortuneltly, you have to be very proactive with these firms. The etrade rep probably screwed up, but the cost of proving it may not be worth it.
 
My 4 year experience with ETRADE has always been excellent.

Last year someone hacked into my account ( did not use the token and used my laptop with no antivirus in my hotel rooms while traveling ). I was credited back all the money as if no trade was ever placed within 10 days and then they made the token mandatory for me.

I agree with you on the platform. At times it freezes and it is very very annoying. I wish ETRADE would do something about it, they know what is going on.

Why didn't they credit you, what did they say ?
 
Go the FINRA website. You can file an arbitration for next to nothing. They will follow up with you, and notify etrade. I'm sure they are buried with this sort of stuff, there will be precedent, and you will win. Be sure to ask for damages, expenses, that sort of stuff. Have your documentation ready. It's a no brainer. I had some idiots I work for hold my deposit, and they told me "go to arbitration. " It was worth it just to hear the sob scream..............."you named me. YOU NAMED ME IN THE ARBITRATON. I'll lose my license." I told him. " you told me to go to arbitration!!!"

Trust me. The securities industry has no rope left. And please. Get the hell out of there.
 
Quote from traderNik:

You placed a market order (as opposed to a limit order) to buy 50 options contracts at 3:59 p.m., is that correct?

By the way, if you have 89 trades in a month, you are not an active trader, much less a 'very' active trader.
More...

You are fos on the active trader part.

Everyone is not a black box tick humper.
 
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