MyECheck, Inc. (fka MYEC)

[Calm68]

Illiquid fees are a real thing.

I had no idea what they were so, seeing how google is my friend, I looked it up. Here's a pretty good explanation of what's happening to Scottrade:

Illiquid fees are charges assessed by the National Securities Clearing Corporation (NSCC) for equities trading on the OTC Bulletin Board stocks (OTCBB) and Pink Sheet markets. All cash, margin, short trades on the OTCBB and Pink sheets markets at any price are eligible to be assessed illiquid fees. Eligibility criteria for these charges are:

Buy Side

Open net buy quantity represents the total unsettled share amount per stock at any given time during a 3-day settlement cycle.

Open net buy quantity must be less than 5,000,000 shares per stock for your entire firm.

Sell Side

Open net sell quantity represents the total unsettled share amount per stock at any given time during a 3-day settlement cycle.

Open net sell quantity must be less than 10% percent of the 20-day average volume.

Please note: The NSCC illiquid fee is based on the aggregate trading volume of all of Apex Clearing’s correspondent accounts, not just the individual client trade. In other words, your trade may not exceed 10% of the 20-day average volume, but you may still be charged the fee due to the trading activities of all Apex correspondent accounts in that security for a 3 day (T+3) settlement cycle.

Here's the penalty:

Are there other charges I may be subject to?

Yes. Apex has implemented a fee of $250.00 for each trade that creates an illiquid charge as determined by NSCC. This fee is in addition to the interest charge that is applied to the customer account whose trade had created an illiquid charge.

Being assessed a $250 fee for every illiquid trade is a lot. They probably simply put a freeze on any security that causes the fee to trigger. It would be great if this weren't the case, but it will take a little time and then iron out. Sucks to be in penny land. Can't wait for NASDAQ.
https://www.optionshouse.com/faq/rates/what-are-illiquid-fees/