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Scottrade Free Ride Warning Violation Question

post #1 of 12
4/24/07 at 7:24pm
Thread Starter 
Okay, I've done at least 3-5 free ride regulations so far in my Dad's IRA awaiting a warning. Supposedly you have 2 warnings before thye restrict your account from buying with unsettled funds. What type of warning did you get from Scottrade that officially said you did a free ride violation. through email, the mail, what?
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post #2 of 12
4/24/07 at 7:28pm
When you log in to the account you will get a warning message along with the confirmations of buys and sells. You will also get a call from them. You will go under the radar if you are buying small amounts, at least I did when I first started. You usually get one warning but they can suspend your account without giving you one.
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post #3 of 12
4/24/07 at 7:33pm
Thread Starter 
Quote:
Originally Posted by simonyadig
When you log in to the account you will get a warning message along with the confirmations of buys and sells. You will also get a call from them. You will go under the radar if you are buying small amounts, at least I did when I first started. You usually get one warning but they can suspend your account without giving you one.

Well I always get warnings when buyign and selling that I may be doing a free ride, but how do they give you the OFFICIAL warning. Also I didnt think they could suspend your account, i thought for 90 days you cant buy with unsettled funds after 2 violations.
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post #4 of 12
4/24/07 at 8:31pm
Quote:
Originally Posted by stocktrader22
Well I always get warnings when buyign and selling that I may be doing a free ride, but how do they give you the OFFICIAL warning. Also I didnt think they could suspend your account, i thought for 90 days you cant buy with unsettled funds after 2 violations.
When you login to your account, you know how you have to confirm all your transactions from the previous day? There is another page that will tell you that you have gotten a warning. You can't get to your ST main/homepage without clicking a button saying you are aware of the violation. You will also get a call that day from a rep. If you have violated this and have not received a warning, it is most likely because you are trading with such a small amount you are flying under the radar. The restriction is for your entire account, not just for buying with unsettled funds.
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post #5 of 12
4/24/07 at 8:40pm
Thread Starter 
Quote:
Originally Posted by simonyadig
When you login to your account, you know how you have to confirm all your transactions from the previous day? There is another page that will tell you that you have gotten a warning. You can't get to your ST main/homepage without clicking a button saying you are aware of the violation. You will also get a call that day from a rep. If you have violated this and have not received a warning, it is most likely because you are trading with such a small amount you are flying under the radar. The restriction is for your entire account, not just for buying with unsettled funds.
Im selling about $10k each time, do they consider that small?
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post #6 of 12
4/24/07 at 8:41pm
Quote:
Originally Posted by stocktrader22
Okay, I've done at least 3-5 free ride regulations so far in my Dad's IRA awaiting a warning. Supposedly you have 2 warnings before thye restrict your account from buying with unsettled funds. What type of warning did you get from Scottrade that officially said you did a free ride violation. through email, the mail, what?
are you saying that you bought or sold on unsettled funds.
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post #7 of 12
4/24/07 at 9:10pm
Quote:
Originally Posted by BigDawg1st
are you saying that you bought or sold on unsettled funds.
i think
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post #8 of 12
4/24/07 at 9:18pm
Quote:
Originally Posted by stocktrader22
Im selling about $10k each time, do they consider that small?
Definitely not. This is a cash account? There is something here that we're missing. If you were really taking free rides with 10k you'd here about it.

Either:

-It's a margin account
-You're not really taking free rides (A free ride is not just buying with unsettled funds but also selling that security which you purchased with unsettled funds before they settled)
- Or there is enough cash available in your account to cover any free rides
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post #9 of 12
4/24/07 at 9:23pm
Thread Starter 
I'm buying with unsettled funds and not waiting the 3 days till they settle to sell. There is not enough cash in my account to cover the free rides, at least not settled funds. And its a cash IRA
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post #10 of 12
4/24/07 at 9:29pm
Quote:
Originally Posted by stocktrader22
I'm buying with unsettled funds and not waiting the 3 days till they settle to sell. There is not enough cash in my account to cover the free rides, at least not settled funds. And its a cash IRA

The only thing I can think of is maybe the fact that it's an IRA account makes a difference. Other than that you got me.

If/when you do get a warning, it'll pop up before you get to your account's main page after you login. Like I said, they'll let you know.
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post #11 of 12
4/24/07 at 9:37pm
Thread Starter 
Thanks!
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post #12 of 12
4/25/07 at 3:06am
i got one once and all that they did was just send me a warning nothing really happened
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