TD ameritrade contingent order execution error

[JunLiu]

I am using TD ameritrade. I have some 3X leveraged ETF in my account. To protect me from sudden market drop, I placed a contingent order to sell those ETF at market price when S&P 500 index drops more than 1%.

This morning, market dropped around 1.4% at the open. The contingent order should have triggered, but it didn't. I had to manually sell the ETF. I contacted TD ameritrade. They admitted that this was their mistake, and promised to compensate if the same thing happens in the future and results in my loss. Following are my questions.

1. Has someone else experienced similar things before?
2. Do similar things happen in other brokerage as well? I do have accounts in Etrade and Fidelity as well. But those are for long-term positions. I barely trade those.
3. If same thing happens in the futures, and TD ameritrade refuses to compensate, what are the actions I can take?

Thanks

 

[lindq]

I am using TD ameritrade. I have some 3X leveraged ETF in my account. To protect me from sudden market drop, I placed a contingent order to sell those ETF at market price when S&P 500 index drops more than 1%.

This morning, market dropped around 1.4% at the open. The contingent order should have triggered, but it didn't. I had to manually sell the ETF. I contacted TD ameritrade. They admitted that this was their mistake, and promised to compensate if the same thing happens in the future and results in my loss. Following are my questions.

1. Has someone else experienced similar things before?
2. Do similar things happen in other brokerage as well? I do have accounts in Etrade and Fidelity as well. But those are for long-term positions. I barely trade those.
3. If same thing happens in the futures, and TD ameritrade refuses to compensate, what are the actions I can take?

Thanks

In my opinion, you're putting too much trust in any broker, expecting to get filled on a contingent opening order on a triple ETF, when the market gaps down sharply.

Appreciate that the market, and the broker, needs to first log the price of your contingent instrument, before it then gets to what may be the opening price of your holding.

Next time, you may want to try making your order contingent during a wider time frame. For example, 09:31-09:35. Let the market get its act together before you jump in.

 

[JunLiu]

In my opinion, you're putting too much trust in any broker, expecting to get filled on a contingent opening order on a triple ETF, when the market gaps down sharply.

Appreciate that the market, and the broker, needs to first log the price of your contingent instrument, before it then gets to what may be the opening price of your holding.

Next time, you may want to try making your order contingent during a wider time frame. For example, 09:31-09:35. Let the market get its act together before you jump in.

You are correct. I understand the risk of placing market order at volatile time.

In this case, what makes me more concerned is that my order was NOT executed at all. I would be fine if it was executed unfavorably. It is like if someone places a market order, and the brokerage simply ignores it. That really pissed me off.

 

[zdreg]

If the firm is in the wrong, they should compensate you immediately.

 

[guru]

I see a lot of people complaining recently about issues with orders at TDA, also on Facebook. TDA may not even be able to compensate everyone if this continues. They need to get their act together.

 

[taowave]

I switched over from IB to TOS due the the zero commissions at TOS.While the TOS system works for me,I have noticed from day one that the TOS execution capabilities on option spreads is inferior to IB. My biggest concern was fast moving markets and having no clue as to the spread markets and the ability to be filled..

 

[dennisa]

FWIW I ran an order at 9:42 to market 25 shares of DHI and it took 4:30 seconds to execute. TD was having major issues at open today and if it keeps up will lose my business.

 

[murray t turtle]

I am using TD ameritrade. I have some 3X leveraged ETF in my account. To protect me from sudden market drop, I placed a contingent order to sell those ETF at market price when S&P 500 index drops more than 1%.

This morning, market dropped around 1.4% at the open. The contingent order should have triggered, but it didn't. I had to manually sell the ETF. I contacted TD ameritrade. They admitted that this was their mistake, and promised to compensate if the same thing happens in the future and results in my loss. Following are my questions.

1. Has someone else experienced similar things before?
2. Do similar things happen in other brokerage as well? I do have accounts in Etrade and Fidelity as well. But those are for long-term positions. I barely trade those.
3. If same thing happens in the futures, and TD ameritrade refuses to compensate, what are the actions I can take?

Thanks

1]Yes
2] Yes+ Etrade was the worst by far i ever used
3]You can do plenty. Keep track of all the delays + slippage @ open.Especially since a -1% drop in SPY is real , real , real common.Plenty of volume+ slippage and action first 15 minutes + last 15[4] Keep track of your dividends also.[5]SPXL, UPRO is higher now,so keep track of your slippage, your 1% sells, compared to your investments/dividends, even if they execute perfectly.
[PS i would not put it like this, but plenty of truth here ''its the job of markets to wreck computer systems ''-Rich Dennis]
I wanted to short the DOW today, but a bracket order would be a waste of time /money unless the goal is pennies.Wisdom is profitable to direct...........................................

 

[schizo]

I am using TD ameritrade. I have some 3X leveraged ETF in my account. To protect me from sudden market drop, I placed a contingent order to sell those ETF at market price when S&P 500 index drops more than 1%.

This morning, market dropped around 1.4% at the open. The contingent order should have triggered, but it didn't. I had to manually sell the ETF. I contacted TD ameritrade. They admitted that this was their mistake, and promised to compensate if the same thing happens in the future and results in my loss. Following are my questions.

1. Has someone else experienced similar things before?
2. Do similar things happen in other brokerage as well? I do have accounts in Etrade and Fidelity as well. But those are for long-term positions. I barely trade those.
3. If same thing happens in the futures, and TD ameritrade refuses to compensate, what are the actions I can take?

Thanks

3) File a formal complaint with SEC and FINRA, as well as with your state's Atterney General.

Complaint Forms
SEC: https://www.sec.gov/oiea/Complaint.html
FINRA: https://www.finra.org/investors/have-problem/file-complaint
State AG: Google for your state

It's worth noting that unless you're a large investor who they deem as important, you won't receive much assistance other than a shrug and a nod. These regulators will most likely inform TDA of your complaint and let TDA do its own in-house investigation, which is like allowing the fox to guard the henhouse. But, at least, your complaint will be docketed and will be used as a future reference should other traders also complain about TDA.

 

[TommyR]

you should never be compensated for not having a stop filled. never eat bats.