MyECheck, Inc. (fka MYEC)

[21ZNA9]

DTC and SCAM MYEC Potential HUGE FEES

It is not penalty money it is in fact actual charges that can be applied to ANY non DTC-Eligible stock when cleared through a penson broker most will not allow these chilled stocks to be bought or sold but it can slip through the cracks and there are many reports of people being charged up to $700 to clear these as they cannot be cleared electronically. These as well as others clear through Penson.

Customers who trade non-DTC-eligible securities are responsible for these fees, which can be as high as $700.00 per trade. Orders that require executions with multiple contra-parties will result in settlement fees for each separate transaction. These charges may not be immediately charged to your account following a trade, as Penson may receive notice of such fees as much as three weeks later. Zecco Trading reserves the right to withhold funds in a customer’s account pending potential assessment of fees.




This is all easily verified online. This can ALSO happen if the stock was bought before the chill when you go to sell you can be charged these fees as well as not being able to sell in one order if the amount is greater than the 20 day moving average. When a customer sells more than 25% of the average daily trading volume (ADV) of a single equity in a three-day settlement period, that security may be "bought-in" by Penson up to three business days later without notice. A group of unrelated customers collectively trading more than 25% of a securitys ADV across all brokerages clearing through Penson can also trigger this policy. The ADV is calculated over the last rolling 20 business days.




Settlement of non-DTC-eligible requires physical processing, which can result in significant execution, deposit, transfer agent and other fees. The fees generated by the settlement of these physical positions are passed through by our clearing firm, Penson Financial, directly to our customers. Neither Zecco Trading nor Penson mark up these fees.

Customers who trade non-DTC-eligible securities are responsible for these fees, which can be as high as $700.00 per trade.

Orders that require executions with multiple contra-parties will result in settlement fees for each separate transaction. These charges may not be immediately charged to your account following a trade, as Penson may receive notice of such fees as much as three weeks later. Trading reserves the right to withhold funds in a customer?s account pending potential assessment of fees.

It is your responsibility to investigate the eligibility status of a low-priced equity before trading it. You may consult the Known Non-DTC Eligible List in our Disclosures Page or contact the specific company whose equity in which you intend to trade to confirm eligibility. Please note that there is no guarantee that the Known Non-DTC Eligible List will contain a complete and updated list of non-DTC-eligible stocks.

Potential Buy-In of Low Priced
Equity Transactions Based on NSCC Requirements

The National Securities Clearing Corporation (NSCC) provides a guarantee of completion for certain transactions for broker-to-broker trades. The NSCC imposes additional deposit requirements on Penson based on the sell volume of low priced equities, in order to limit settlement risk.

When a customer sells more than 25% of the average daily trading volume (ADV) of a single equity in a three-day settlement period, that security may be "bought-in" by Penson up to three business days later without notice. A group of unrelated customers collectively trading more than 25% of a securitys ADV across all brokerages clearing through Penson can also trigger this policy. The ADV is calculated over the last rolling 20 business days.




MUCH more info here and MYEC is on the list. I'd suggest people mget up to speed on this.


http://investorshub.advfn.com/Stuck-and-Screwed!-22531/



From TradeKing another brokerage:

FEES

Low-priced securities are subject to settlement fees if they are non-DTC-eligible securities. The Depository Trust Company (DTC) provides clearing, settlement and information services for certain securities. Certain low-priced securities are not DTC-eligible or have had their eligibility revoked. As a result, the settlement of these physical positions can carry significant pass-through charges for our clearing firm, Penson, including execution fees, DTC fees, deposit fees, New York window fees, and transfer agent fees. These fees, which can vary and may be substantial, increase the cost that Penson, passes through for clearing and execution.

Customers who trade penny stocks and non-DTC-eligible securities are responsible for these charges, which can be as high as 10 times the value of the trade. Orders that require executions with multiple contra-parties will result in settlement fees for each separate transaction. Neither TradeKing nor Penson mark up any of these fees before they are passed through to customers. These pass-through charges may not be immediately charged to a customer account following a trade in non-DTC-eligible securities, as our clearing firm may receive notice of such fees several weeks following the trade. TradeKing reserves the right to withhold funds in a customer account pending potential assessment of fees associated with trading in low-priced securities. It is your responsibility to investigate the eligibility status of a low-priced equity before trading it. You should contact the specific company whose equity you intend to trade to confirm eligibility.