Stock Trading and Other Things

Why do online brokers treat me differently?

I had an account online with a firm called SogoTrade. I used most of the total I was allowed for day-trading buying power. This firm told me I have to close out this amount I got from day-trading buying power that same day. I didn't do this once and they said my account is restricted from trading for 90 days. I decided to get around this restriction to transfer the account to Scottrade. With Scottrade I sometimes use day-trading buying power and I am not informed about being overdrawn on my account until a few days later. I end up not being restricted for 90 days with this firm. Sometimes if an account balance is less than $25,000 it makes a difference but I had more than this amount in each firm. Shouldn't each online firm do the same things. What are the reasons why one online broker restricts my account right away and another broker gives me a few days?

Public Comments