I saved up $750 and put it into Sharebuilder. Then I found a stock that fluctuates between .01 and .05. It was at .02 and I put a market order in (yeah, I know now). Well, it executed at .05. Now Sharebuilder says I owe them over $1k. Is this legal? How far in the hole can they legally put you on a market order?
Thank you
Posted by Bob Frey on :
I would ask them.
Posted by Machiavelli on :
Sharebuilder is a horrible company to play pennies with... they cannot ever fill a order fast enough.. my guess is you saw their cheap commission price and no minimum to open a account and did not do any research on alternative brokers so you went with them... my other guess is you do not have much clue on what you are doing trading wise and you jumped into this game without educating yourself about it first with books and such... first mistake was the Market Order... am i correct on both these points? ...
Posted by PCola77 on :
if the ask was .05 when you put in your market order, you would be lucky to pay anything less than .05. I doubt you'll have any recourse.
Do you know what the ask was when you did your order?
What did you thikn would happen to your order, did you think it would go through at .02 since that's what the last trade was for?
My guess is that you just learned an expensive lesson. But on the bright side, there's a chance that you could sell for break-even or a gain at some point, depending on the stock.
that is, if they don't force you to sell the stock to pay their margin call.
Good luck to you, and I'm sorry you got burned.
Posted by T e x on :
I just called 'em...apparently, you had an "express" funding account, or sumpin' like that...wherein you gave them authority to tap your bank account to cover... the market order filled and killed. As Mach said, they're horrible for pennies: no live quotes. Expensive lesson--can't trade on delayed quotes, and hardly anyone uses market orders...
We have educational resources here, if you plan to continue trading...
best wishes
Posted by recursian on :
When I saw that I owed over $1k, I panicked and dumped it, of course at .02. Yes, Sharebuilder sucks for pennies, and I blew it on that trade. I had been doing well taking my time with limits but got greedy and trusted the delayed quotes. I just didn't realize that I could lose more money than I had in my account. Anyway, who do you recommend instead of Sharebuilder?
good grief! they didn't adjust the number of shares to prevent from going over?? taped the guys account? Thanks for sharing recursian! I wish you the best.
Posted by Machiavelli on :
quote:Originally posted by recursian: When I saw that I owed over $1k, I panicked and dumped it, of course at .02. Yes, Sharebuilder sucks for pennies, and I blew it on that trade. I had been doing well taking my time with limits but got greedy and trusted the delayed quotes. I just didn't realize that I could lose more money than I had in my account. Anyway, who do you recommend instead of Sharebuilder?
Thanks
Choicetrade.com and read some books on trading as well...