Allstocks.com's Bulletin Board: newbie question: e*trade 90 day unsettled funds lockout

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Posted by yayaba on :

Hello all... a newbie to stock trading here.

So, I recently started up my own e*trade account to dabble with $1000 bucks. Unfortunately, I didn't know about the 3 day unsettled cash Regulation T thing and before I knew it, slap, I got an alert today saying that my account would be restricted.

My question -- has this happened to anyone before and what's the general process to get it unlocked? I called up e*trade (surprisingly was only put on hold for about 10 minutes) and the rep told me what I did wrong and that to rectify this, I'd need to deposit money into the account totalling what I freeloaded. Then she said that e*trade would review my account and she said that it didn't necessarily mean that I'd get my restriction lifted... wtf? [Confused]

I did some searching on this board and one member had a similiar problem but he said that they would just lift it in 3 days... which isn't exactly the same thing as what this lady just told me.

So... now what? Am I safe after 3 days? Or do I need to deposit more money? Or should I just say screw it and wait the 90 days, open up an account somewhere else, and transfer my money out when I can and close the e*trade account?

Thanks appreciated to anyone who can help this poor newbie [Smile]

Posted by BuyTex on :

Once I simply sent more dough; another time, I sold a partial position.

Do you have a local branch? (I'm not familiar with e-trade...) If so, make friends with the folks there...a manager familiar with you and your account can help smooth things over...

90 days? only if you wanna...I wouldn't do that, personally speaking. I'd do whatever it it takes to convince them me and my account are straight up. I will say this: sometimes multiple calls are revelatory--many "entry level" folks at these brokerages are shockingly ignorant. Ask to speak to a manager and then courteously explain your circumstances/experience and ask for help...

Regardless, I'd say get your trading strategy planned out to avoid the problem. And, yes, some brokers are more "forgiving" than others...maybe some folks with lenient brokers will post.

good luck

Posted by cbrf2 on :

usually, they'll lift the restricton your first time. you get into it again, you pay the amount you went over. If you dont, you go on a 90 day restriction. i.e. me. Its regulated by the SEC, but keep calling them n they might just do something in your favor. gl