just had a bitch session with my broker - very eye opening and its gonna suck for a pile of brokers out there
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You are now chatting with 'David J'
Your reference number for this chat is LTK495014409160X
David J: Hello. Thank you for contacting Questrade, my name is David. How can I assist you today?
ME: Hi there - re note today: Non-eligible DTC securities Effective Tuesday, November 1st, opening and closing transactions of non-DTC (Depositary Trust Company) eligible securities will incur a $400 settlement fee as these securities can no longer be handled electronically.
ME: does this apply to ones we have bought while they are eligible, but then become ineligible before we sell?
ME: and if so, how the heck are we supposed to know if we are walking into a trap or not?
David J: Yes, you will be charged the fee if you wish to sell.
David J: We do have a list of non-DTC stocks.
ME: ok, so like I said, how is that ethically reasonable if we bought the stock when they were eligible and freely trading? It would seem to me sell only should be allowed in those situations without penalty
ME: do we have access to the list?
David J: No, you do not have access to the list because it does change.
ME: I say this because it happened to me a few months ago - I bought it while eligible for trade, but next day it wasn't - I had to fight through to sell - they said I would be charged, but I haven't seen it.
David J: You will need to contact the company or us to see if they will be eligible or not.
David J: WE have sent the email to notify you that starting November 1, 2011, you will charge this fee.
ME: is there any way to actually get the list online? It is very hard to find your way through the DTC site
David J: This is plenty of time to take precautions to avoid this fee.
David J: No, there is no way to get the list online. We update it it when we get news in our internal system. I am not sure if this is accessible elsewhere online.
ME: I realize that. I am saying after Nov 1 - I buy XYZ on Tuesday as it is eligible, then for some reason, after the close on Tuesday, it goes on the in-eligible list. I go to sell on Tuesday and discover I'm trapped. You are saying if it was a $500 trade, you are going to charge an 80% fee on something I was unaware was going to happen?
ME: Do you realize how unethical that appears?
ME: regardless if its your policy or not
David J: Yes, if you find out the same day that is become ineligible we will sell it for you with no charge.
David J: However, if you are aware ahead of time, then it will be charged.
ME: well that I can appreciate as MNGD blocks the trade anyway, but seeing that this happened to me, I want to know I won't have this happen when the rule is in effect.
ME: So are you saying though if I bought on Tuesday, it became ineligible on Tuesday night, but I didn't sell until Thursday, I 'would' then be charged as it isn't the same day?
David J: I just spoke to my supervisor regarding this.
David J: He informed me that yes, you will need to pay the fee.
David J: This is a risk of dealing and purchasing shares on the OTC market.
David J: I apologize for the inconvenience.
ME: you can't even provide guidelines as to which ones are at risk?
ME: I could understand pink sheet, unregulated, but I have had it happen with OTC as well
ME: OTC over $1
David J: No unfortunately we have no control over the guidelines or the decision with eligiblity.
ME: so what you are saying is you may randomly just slap a massive fee on a stock regardless size of trade with no guidelines whatsoever to watch for? Correct?
David J: Yes, because we have no control over the decision that whether a stock is DTC or non-DTC.
David J: We charge our fees based on what what needs to be done in our end to provide the service to sell.
David J: If a stock becomes ineligible, it is a risk you take.
ME: well, frankly, if that happens once for me, I will take my $10000 annual commissions to Royal Bank - end of story. That takes away my right to freely trade at set rates defined in our contract. I will have to go to a broker that doesn't use penson. Thats just business.
ME: I assume am not taking that risk if eligible, I can't help if I'm already in and then it goes ineligible like what happened to me a few months ago.
David J: I apologize for the inconvenience, but this is waht my supervisor has informed me.
David J: I understand the frustation but I have no control over the fees we charge.
ME: I understand, please pass on my concern in the situation I describe as you will lose alot of business over that. I would suggest the company starts looking for alternative clearing house!
David J: I will definitely forward this information on to my supervisor.
David J: I understand the situations and wish that I could do more Mr hadley.
ME: I realize you are the messenger. Appreciate your comments.
David J: Is there anything else I can assist you with today?
ME: no, that is all for now...thx
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-------------------------------------------------------------------------------------------------------------------------------------------------------------------- DISCLAIMER What I post is an opinion only, by no means a professional opinion! I choose to put an emphasis on fundamentals, and even if something screams a buy, I've learned that the stock may not move just because the fundamentals say it's undervalued. If I post about a stock, it doesn't necessarily mean I hold shares - I often like to just discuss plays for the sake of conversation. This is a forum of discussion...for ideas - do you own DD and take responsibility for own trades. |
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