MB Trading: 12 day hold on check deposits

Quote from ethos:

I just run into weird problem with MB Trading. I sent them a check to deposit into my new account and it was cleared few days later. The deposit still didn't show up in my account.

I asked them what happens with my money AFTER the check is cleared. Here is the reply:

"If funds verification is not provided the check remains on hold for 12 business days. Once the 12 business days are up, the funds will be posted to your account. The funds remain at Penson Financial Service."

I sent them cleared check image, hope it speeds it up.

Do any other brokers do that? I've newer ran into such things before. I opened IRA account with them to see how it goes before transferring my larger trading account. I don't want to make my decision based on that issue only.

Any feedback from MB Trading customers? Are you happy with MB Trading service?
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Ethos;
The banks around here mostly charge $20.00-25.oo for a bank wire.

Mine charges nothing for a bank wire.:cool:
 
Welcome to the world of finance....


Back in the day, Morgan Stanley had the policy of handing out cheques at the end of the day......Late enough that banks wouldnt be able to accept them for the weekend..The interest would get another 2 days to rollover on the interest....

My bank tried to hold a USD cheque for 21 business days......1 month to the rest of us. Unbelievable. You have to push them and say you'll walk away....

My addition to this is to wire the money (suck up the 30$ cost) and start trading within 3 days. Any more than that and you should be asking for discounts on software etc...Play hardball...

Good luck with the trading at the new broker
 
Ethos-

I don't think your problem has much to do with Penson. I use TOS, who also clears through Penson, and each time I've sent a large personal check my account has been credited the day after they received it. And it's been available for trading right then as well.

Maybe TOS has a different arrangement with Penson, whereas if they know the customer they make the funds available sooner?

I can tell you that I would not accept a 12 day wait on my funds, period. That would be ridiculous.

Good luck-

Don
 
Quote from traderdon56:

Ethos-

I don't think your problem has much to do with Penson. I use TOS, who also clears through Penson, and each time I've sent a large personal check my account has been credited the day after they received it. And it's been available for trading right then as well.

Maybe TOS has a different arrangement with Penson, whereas if they know the customer they make the funds available sooner?

I can tell you that I would not accept a 12 day wait on my funds, period. That would be ridiculous.

Good luck-

Don
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They deposited the money after I emailed them the image of the cleared check. I guess the whole problem is that I'm new customer to them. I don't have issues like that with my other broker.
 
Quote from ElectricSavant:
Then you should not be able to withdraw within 12 days, but you should be allowed to trade...

Unfortunately, that's not good enough. You can engineer a transfer back out with a hedged trade that loses a bunch of money in the "new" account and wins it another account. Thieves will even accept some "laundering" slippage/loss, since it's all "free" money anyway.
 
Any complaints about MB Trading?
Looking for a change from Tradestation and may use MB integration with neoticker. So I assume I could use MB feed for neoticker.
Since MB only been around simce 1999 just wonder how many accounts they have and total in assets.
Are they safe?
 
Quote from alanm:

Quote from ElectricSavant:
Then you should not be able to withdraw within 12 days, but you should be allowed to trade...

Unfortunately, that's not good enough. You can engineer a transfer back out with a hedged trade that loses a bunch of money in the "new" account and wins it another account. Thieves will even accept some "laundering" slippage/loss, since it's all "free" money anyway.
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Not exactly sure I understand. How do you guarantee the new account has the losing side of the hedge?
 
Quote from fhl:

Not exactly sure I understand. How do you guarantee the new account has the losing side of the hedge?
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You just keep trying with hedges during earnings and other events, etc. Eventually, you'll get one that goes hard the wrong way. Options can even make this better, although with some leakage.
 
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