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ScoTTrade

reviewed by VAtrader

ScoTTrade

VAtrader
04/14/2009

ScoTTrade 1


On ****/2009 at 8:26am EST I placed an order to buy a stock. I noticed that the Bid/Ask price was fluctuating and the premarket price had moved up enough that I didn't have the funds to cover the trade, so I decided to cancel the order and place a new order when the market opened. Between 9:25 am EST - 9:27 am EST, I tried to cancel my order twice. However each time I tried, the server appeared to hang and I did not recieven any confirmation. At the same time, I was on the phone trying to get to my local branch, because I noticed that the order had been modified from my original order. I had not authorized any change.

I was not able to get through to the local branch in the two times that I called. I was finally able to modify my order online and change it to a limit order at 9:28am EST. When the market opened, Scottrade filled my original order, and simply canceled my modification order.

Being very confused about the trade, I contacted Scottrade immediately (9:40am EST) to see what had happened. I then spoke with the Compliance dept. Both the branch manager and compliance would not resolve the issue and indicated that they needed to research the issue. I expressed the urgency necessary, as I had thousands of dollars tied up in this trade. After the close of business that day, I was still left without any resolution and stuck in a trade that will cost me thousands.

I am very concerned about this trade as hundreds of investors are having this happen to them. If this were a 1000-5000 share trade, this could have been a much bigger problem”.

I’m sure that Scottrade has recorded the phone call, but if they don’t have the recording, I recorded the phone call for my records.

I believe this is an issue that needs to be looked at.

I am certain that if Scottrade would have informed me on this rule of canceling a trade after 9:28am est, I would have not made the trade. I really don’t think anyone knows of cancelation order after 9:28am EST.

Based on the comments on this board regarding Scottrade, I believe something has to be done.

Please post here of PM me if you have had similar experiences. I would like to explore a class action suit if there are enough problems. Otherwise, buyer beware.

Thanks for your help,

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ScottradeBlows commented 145 days ago.
I have a similar story. A couple of weeks ago I did a money wire. The money wire had The receiving institutions account number, address and name of the institution correct. However the money wire was still sent to another bank. That other bank refused to send the money back because the information they received was correct. Scottrade refused to pursue pulling that money back even though it was requested to do so within the timeframe of "the midnight deadline" as outlined by section 4A of Federal UCC regulations.

I too lost thousands of dollars on this. I also spoke with the compliance department. They refused to pursue this. I was told they do not put effort forward on erroneously sent transactions; even though they sent the transaction. I was also refused to speak with their legal department. Furthermore, I was told that they would not speak to their legal department on my behalf and was told customers were not allowed to do so. Specifically, I spoke with Matt in the Compliance Department. I would love to give his last name on here but I feel bad for the idiot. Let him to get a job at Toys R Us one day. Not only was he not helpful but he was ignorant to anything I referenced to him. Get someone that is willing to do their job and knows what they are doing. Why they have someone working in the compliance department who knows nothing and is not capable of doing his job, I do not know
Not only does their department that reviews transaction have serious issues with reviewing money wires but their compliance office has serious customer service issues.
I have since emptied my account and I am trying to find legal counsel to pursue this. I'm also going to contact the SEC. If you know of a lawyer specializing in such matters please e-mail me. I will not let Scottrade continue to operate in such a matter. I am completely displeased with this broker. I do not recommend anyone use them. There are multiple lawsuits against them as well as a cease and desist order from the SEC for other issues. Would you want such an ignorant and incapable institution handling your money?
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