Tradezero messed up accounting?

G

GotherL

I bought VTVT at $1.04 for 650 shares yesterday. The stock went up to $1.60 in less than 5 minutes but my shares were sold by my broker way before that at 1.02 because my equity went below $100 and triggered a risk sellout. Now the question is. Why would they give me $650 buying power if my equity was so near to going below $100? I just don't understand that logic.

Felt like I am getting screwed because this broker doesn't know how to handle accounts professionally. Also, whenever I emailed them about my issues they always give you one liners that completely dodge the question. Their support seems lazy and stressed out individuals who are tired of answering people's questions.
 
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LS1Z28 said:
Tradezero offers 6:1 intraday leverage. How much did you have in your account?
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Let me guess: $113?
Trading a $100 account is plain stupidity. If you have no money you can lose, and thenI mean a few thousand $, then don't "trade".
 
schweiz said:
Let me guess: $113?
Trading a $100 account is plain stupidity. If you have no money you can lose, and thenI mean a few thousand $, then don't "trade".
More...
That would be my guess as well. Maxing out your buying power on a penny stock when you're teetering on the edge of a margin call probably isn't the smartest thing to do. ;)
 
schweiz said:
Let me guess: $113?
Trading a $100 account is plain stupidity. If you have no money you can lose, and thenI mean a few thousand $, then don't "trade".
More...

LS1Z28 said:
That would be my guess as well. Maxing out your buying power on a penny stock when you're teetering on the edge of a margin call probably isn't the smartest thing to do. ;)
More...

I had $1000 but lost $800-$900 after commission and platform fee. It was only normal that if I saw my cash balance is $700 the next day I will try to trade with that. But that's not the point. I am not asking if I traded more money then I actually had was right or wrong. I am just saying their accounting is messed up. It makes no sense if I only had $113 equity but be able to trade 650 shares at $1 when it clearly says at their website 0-$500= no leverage. They messed up my buying power then set me up so I trigger a risk sellout to lose even more money.

Well, actually it wasn't the money I loss but the money I missed that was disappointing. Now if they updated my buying power correctly and I didn't have enough to trade then that's that. But by giving me $700 buying power incorrectly. It just caused unnecessary psychological damage on this symbol. The stock went as high as $6 from $1 yesterday.

I didn't even demand support for compensation. I just wanted an explanation why I was given so much buying power when my equity was so dangerously low to triggering a margin call or more precisely a risk sellout. And they just dodge the question completely the 2 times I emailed them and dropped me a one liner like this.

Support@TZ Oct 2, 15:35

Hello, if the account fell below $100 in equity the risk sell out is triggered, and a market order goes out to liquidate positions.

I already explain to them that it triggered the $100 equity thing in my question and they just hit me back with what I already knew.

2nd time I email about why one of my short positions is still showing and my account balance is not reflected correctly when I covered it a long time ago.

TradeZero Support Oct 3, 11:10

Please log into the client portal and click on Check My Account
All open positions and account history are there. If you have a specific question about a trade or charge there, please let us know.
Thanks

As you can see. Not answering what I really wanna know but dropping 1 liners that sound almost condescending. I am calling out these guys are very unprofessional...
 
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