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Tradestation account denial


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Tradestation account denial

  #11 (permalink)
 
xplorer's Avatar
 xplorer 
London UK
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forgiven View Post
when i first started trading i took a course on trading that also covered learning there platform. then after paying 500.00 for said course on leaning there platform they would not give me a account . if you have traded for a while or have a lot of money there may not be a problem. i thought that was bad.

Did they explain why they would not open an account?

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  #12 (permalink)
 
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 Crassius 
Shenandoah Valley, VA
 
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Skullbones View Post
I tied to open an account on Tradestation and they denied me and wouldn't say why. Does anybody know why they would do that?

Brokers get sued all the time by fools that loose all their money, and then sue the broker claiming they should never have been allowed to open an account, because they are in-experienced, on a fixed income, trading essential retirement funds etc.

In the application there are questions designed to fulfill the broker’s obligation to their clients to ensure an account is appropriate for your risk and experience level... they will ask you how long you have traded the instruments you desire, and questions designed to frankly cover their ass in a lawsuit as described above.

There are questions designed to uncover/document your intended purpose of the account...If you fail to answer Speculaton on a futures account, and instead answer Retirement Income, that could count against you.... one clever question I had when opening an account was,

If you bought a security and it dropped 4 percent the next day, what would you do?

A. Sell immediately
B. Sell half
C. Set a stop loss below
D. Hold, and possibly buy some more

The purpose of the above question and others like it was to demonstrate your actions would match the purposes you stated in the application previously.

Another question that a positive answer will likely lead to a denial is...,

Have you ever filed a complaint against a broker, or been a plaintiff in a lawsuit against a broker?
( I’m paraphrasing, but you get their intent... they don’t want everyone’s account.... some clients aren’t worth the trouble and legal expense)

Another reason you could have been denied is your stated liquid assets etc...

You need to be liquid and flush enough to handle several limit down days in a row...which can get very expensive

If you were trying to trade futures, and got denied, either adjust your answers to such questions appropriately... you decide what that means, with another broker, or try to open with less privileges.... like stocks only, trade a while, build up a record of experience, without stupid mistakes like not covering a margin call timely, and then try to upgrade to other perceived riskier asset classes.

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  #13 (permalink)
 
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 forgiven 
Fletcher NC
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xplorer View Post
Did they explain why they would not open an account?

they said they could be sued. But i had no problems with any other brokers. i think its B.S. i have no problem with the idea if they told you that up front be for wasting your time and money. what there doing is cherry picking. if that is there business model they should tell you that up front. this is not the broker for new trader to start.

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Last Updated on November 29, 2018


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