Replies to post #79 on Brokers that allow Caveat Emptor OTC stocks

[iwant1mil]

Why would anyone want to pay outrageous fees just to be able to buy worthless CE stocks that's already a total loss. Rather than finding a broker will trade CE, my new approach is to just avoid stocks that has not had any news in over 6 months and not have to worry about it going CE.

[creede]

This is very interesting.

I am very pissed off right now at Schwab and the rest of the discount brokers. They have forgotten their jobs.

Let me remind those idiots.

Their job is:

TO ROUTE OUR ORDERS AND MAKE SURE OUR TRADES ARE SETTLED CORRECTLY.

THAT'S IT

Between the CE (and now the twisting of the 211 rule) they have set themselves up as a regulatory body. Soooooooo stupid and annoying.

I called Schwab this morning to complaint.

creede Member Level Wednesday, 09/01/21 08:59:43 AM
Re: nsomniyak post# 3045
I woke up this morning and called Schwab to complain. This is really not sitting well with me.

The rules change was only designed to tell the Market Makers (BROKER DEALERS - not Discount Brokers! i.e. Schwab, ETrade, ETC) which stocks are eligible for L2 quotes. That's it!)

Quote:
Case in point - Schwab jumped the gun and implemented its "liquidate only" rules early. Last week despite their own website which said this would happen later. Today I went to buy a stock (IPTK) that has been pink current since August 6. I was not allowed to buy. I called a Schwab broker to ask about this, and was told "the list should update weekly" I told him this stock has been pink current for 24 days, so obviously your list is not updating weekly". I asked to speak to a supervisor, and, when she came on, I went through the situation with her. Several hours later she called me back, and here is the story I got.


After being on the phone about an hour, I honestly cannot figure out why they are doing this. The two reps I spoke to really could not offer good explanation. They said all kinds of things hoping I would be happy. I wasn't. Here's some of the bullet points.

1. I was told it was for my protection. I said that was like selling me a car that would not go into certain neighbors because it was too dangerous.
2. I was told it was because these companies may go out of business and I could lose all my money and so could Schwab. I said that is ridiculous because you cannot buy penny stocks on margin - and really it's my money and my business where I risk it!
3. I was told these kinds of companies have a larger number of scammers in the world (like from overseas) and Schwab prefers not to do help these kinds of people. The lady citied marijuana stocks as an example. Schwab apparently will no longer allow its clients to purchase MJ stocks.
4. There is a good chance these companies will be suspended. I told her only if the MM's continue to reflect quotes. Then they will be suspended and send to Expert and given the CE. But that's the responsibility of the BROKER DEALERS. Not the DISCOUNT BROKERS. frown

So anyways, I don't know why they are doing what they are doing. Maybe Grey/Expert stocks are a pain in the ass and cause them to lose money and they just want them gone.

I think this opens the door to possible lawsuits (I mean tell me one good reason why you cannot buy IPTK right now. They are causing the stock to lose value!).

I also think this opens the door to a new Discount Broker to appear that returns everything to sanity.

Who gives a shit about CE Warnings or Grey Sheets? That IS NOT THE JOB of the discount broker. They are just supposed to route our orders and settle our trades.

Those dumbasses.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=165722064

[Dan Money]

So Speed Trader is still good?