Interactive Brokers Screwed my GME Play Costing me 131,700 Tendies via /r/wallstreetbets #stocks #wallstreetbets #investing
Interactive Brokers Screwed my GME Play Costing me 131,700 Tendies
I placed a market order for 3 x GME 05FEB21 44.0 Call on January 14th. This was done using my TFSA account as I did not want to pay tax on potential gains. I had been informed multiple times and through my account contract that a TFSA can never go or enter into a trade which would result in a negative account balance. The only way for an account to enter a negative balance using a TFSA is through fees related to monthly account maintenance costs.
So here's how the trade went:
BUY: GME 05FEB21 44.0 C
then 11 minutes later…
LIQUIDATED: GME 05FEB21 44.0 C
TOTAL LOSS -768.18USD
This resulted in my entire account being in such a bad balance that I could not enter into an options contract for GME.
I of course called the contact center where the Representative told me it was impossible for a TFSA to go into a negative balance from a trade. The person proceeded to call the European office which found this issue concerning. I waited on hold while they contacted the American office. In the end, the representative told me that this trade should not have put my account into a negative balance. I filed a complaint through IKBR and was told by more than a few representatives that complaints usually take 30 days but that IKBR has up to 90 days to respond.
I call IKBR and inform them on January 27th (Wednesday) that I would, if I had my options, be selling and or exercising them. On January 28th the stock price rose past my calculated sell price which caused all GME shares to be sold across all my brokerages.
Fast forward to today when I called IKBR to request an update. As usual, before I give my account information I have the representative confirm TFSA's cannot go into an account balance due to a trade. The representative agrees that it is not possible… until I give her my account information. Then, like a switch, she changes tune. Says that IKBR does not have the ability to follow regulations around TFSA. That "NO ORDER CAN BE GUARANTEED TO FOLLOW REGULATIONS WHEN USING IKBR" in regards to the limitations of TFSA's.
Yeah, you read that right. IBKR just admitted they cannot guarantee that trading regulations will be followed with TFSA's all in an effort to weasel their way out of my tendies.
Placed a market order for 3 GME options. Woke up to find that Interactive Brokers bought the GME and placed my account into a negative account balance, which they said is impossible. Liquidated my account and took all my money. Charged me a commission on top of it all. GME goes to 483.00 causing me to lose out on a maximum of a 131,700USD.
Submitted February 22, 2021 at 11:09PM by Verhaz
via reddit https://ift.tt/3keqix5