Quote:
Originally Posted by teomaxxx
so the problem with Apex clearing (former pension clearing) is described here:
http://www.damngoodpennypicks.com/pe...cial-services/ - " other rules such as an ?illiquidity? rule which applies new fees to thinly traded penny stocks or in some cases simply disallows the trading of penny stocks that are illiquid."
all the brokers using APEX clearing have those bullshit rules about trading illiquid penny stocks. you will be forbiden to sell/buy penny stocks in big volumes.
more on APEX clearing here:
http://www.damngoodpennypicks.com/pennystocks/?s=penson |
Ah! That is what suretrader talks about, too
ILLIQUID STOCKS
All clients of our firm in aggregate cannot trade in excess of 10% of the previous 20 business day average trading volume of any stock on any day regardless of the stock's price. In addition, for stocks trading below $1 per share, clients cannot ever trade more than 25% of the current day's trading volume. There also cannot at anytime ever be more than 5,000,000 shares of any one stock settling during any 3 business day settlement period for our entire firm. If a client trades in excess of these restrictions, then their accounts will be subject to fees and interest charges and possible buy in or sell out of the violating position during the 3-day settlement period of those trades. There will be a $300 fee for any trade that is in violation of this policy. The interest charges will then be assessed on an illiquidity requirement imposed on the clearing firm, which could be many times the value of the trade. The interest rates charged to clients who violate these restrictions will be a minimum overnight rate of 15% of the illiquidity requirement. These are only guideline amounts and lower trading volumes can also trigger illiquid charges, which will be passed through as well. Repeated violations of this policy will result in the account being closed.
Now how in the world am I supposed to know what's settling across the whole darned firm? Does that not basically say, hey, we can take your money for some half *** reason out of the blue and you agreed to it....?
