I don't understand or know what my broker is trying to make me believe, but I have an excess of 75K in my account and they are pulling all kinds of stuff. I had a trade going a few weeks ago, sold it and then had some different information that made me want to buy the same stock back again. They are pulling the three day settlement rule on me saying the Federal law says I have to wait 3 days for the money to clear before I can use it again.
I have a CASH only account and they are telling me it would be no big deal if I changed to a margin account. I don't understand what they are doing. I can only assume that they want me to use their money during that 3 days to create income for their business. They are also selling my stock ahead of the posted time. In other words I had a stop loss, even though I canceled it before it sold, they sold it anyway. Now I can't see the time they did this, because I'm sure that I canceled the trade before the sale went through. What can I do?
Last time I bought stock before the settlement date, they said it's a federal law that says I can't buy before the settlement date, and they said if I buy stock before the settlement date they will lock my account for 90 days.
I have a cash only account, and I said the money was there for me to use, and if I can't why doesn't their computer software stop me from using it? I got no answer. Is that the law, and can they lock me out of my account for 90 days?
Just to be clear, I never use anything but my own cash to buy stock in my cash only account, but they said if I had a margin account buying stock within that 3 days "this would be no big deal". But if I have a margin account that way they can charge interest during that 3 day period, because originally I had a margin account and switched to a cash only account, and when I had that margin account they did in fact charge interest for that three day period for using their money until my money cleared so they say, that's why I changed to a cash only account, and I think they are not fond of it.
Please tell me if the the law will allow them lock me out of my account if I buy stock with my money that hasn't cleared the 3-day settlement period?