Don’t call the SEC or FINRA on Scottrade, they will close your account

If you are not happy with your brokerage account, whatever you do don’t contact FINRA or the SEC. This is the fastest way to get your account closed. But then again it might the fastest way to shut it down…

I forgot that I had this laying letter around in some files that I was sifting thru the other day. At the time of this letter, I filled a complaint with the SEC as I believe that Scottrade was not only recording my phone calls without permission. (This is a federal offense since I have a California phone number) Most importantly Scottrade was providing misleading information in regards to my account. With that I took the time and filed a compliant with FINRA and then SEC.  We all know that FINRA, the self policing organization with the highest standards, did absolutely nothing.  The Porn watching employees of the SEC, as you can image did absolutely nothing.

The moral of the story is that if you file a complaint with FINRA or SEC, then Scottrade will happily shut down your account.

Scottrade closure letter

RE: OptionsFirst Account XXXXX901

Dear Mr. Humphrey:

We are writing to inform you that the status of your OptionsFirst Account has changed. Due to our determination that you7 require a higher level of services, we no longer feel comfortable maintaining your account. It is the decision the Compliance Department to terminate our Business relationship with you.

Please be advised that as of the close of business on April 16, 2010, your account will be closed for new purchases and any orders to opne new positions. Furthermore, your internet access will be limited to view your account information only. You will no longer be able to place trades online.

Please be aware that your account will not be frozen, but will be restricted to liquidation transaction only. We will accept instructions to liquidation and closer out existing positions through the OptionstFirst Department. You can place your trades by calling them at 1-877-223-3344. Please be aware you will only be charged the Internet rate.

If you do not wish to liquidate your positions, we kindly ask that you make immediate arrangement to transfer our account to antother brokerage firm of your choice.

We regret that we are not longer able to serve your investment needs.


Cilnton Borchardt
Senior Compliance Examiner

cc: Brian Falls, OptionsFirst Manager


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