Tradeking changes its ACH holding time to 60 business days

In a previous post, I wrote that Tradeking is holding my money hostage.

Basically the issues started after I indicated my intention to transfer my business elsewhere. Tradeking started a lock-down on my account, restricted my account and then told me that any money that I transferred by ACH to them cannot be returned for 60 business days.

60 business days! That’s a minimum of 12 weeks or almost 3 months. I wouldn’t have ACH my money to any broker if I knew that my money is going to be stuck for 3 months!

Anyway, Tradeking sent me an email that pointed me to the following link:

http://content.tradeking.com/wiki/display/tkservice/Funds+Availability

[Link to screenshot]

The link states

ACH Deposits
- 5 business days to clear for trading
- 60 business days from date of deposit to release funds from the account – return funds via ACH only

From the wording in the email, it is intended to inform me that the ACH holding policy of 60 business days had been in place for a while. It’s my fault that I did not see it.

After I checked carefully, I noticed that the page in question was modified on 12/08/08 (see bottom of the page: 12/08/2008 Version 003) AFTER my issues with Tradeking started. I then hunted for the previous version. The previous version, which is still in Google’s cache currently (cache date Nov 24, 2008 12:44:48 GMT), stated a ACH holding time of 10 business days.

ACH Deposits
5 business days to clear for trading.
Allow 10 business days from date of deposit to release funds from the account – return funds via ACH only.

To see this, type

site:content.tradeking.com ACH availability

into Google’s search box, and then click for the cache version in the first search result.

You can also access it via this DIRECT LINK. Note that since this is in Google’s cache, it will be overwritten in the next cache update and you might not be able to view it a few weeks after the date of this post. So I have kept a screenshot HERE.

I understand that Tradeking can probably change the terms and conditions at any time they like (most likely covered in the client signup agreement), but in this case, I don’t think that this is a fair or reasonable business practice, especially it appears that the modification were made to discriminate against me.

I also don’t consider it a reputable business practice to change the terms and conditions without advance notification to all other investors. I am now really getting concerned with the integrity of this brokerage firm.

For investors who already have an account with Tradeking, I urge you to consider carefully before you ACH new money to Tradeking. You might not be able to see your money again before waiting for 3 months. You probably might also want to evaluate if you want to continue using them.

By the way, the ACH holding time stated at the point of the ACH transfer page is still showing a 10-day holding period:

They should change this to 60 business days to avoid misleading investors.

Keywords: complain, complaints, sucks, issues, problems, cash balance, ACH, wire, review, overview, shady.

Related posts picked by plugin:

Stumble it!

6 Responses to “Tradeking changes its ACH holding time to 60 business days”

  1. indexfundfan @ indextown » Blog Archive » Higher new fees at Tradeking Says:

    [...] my bout of issues (Tradeking is holding my money hostage and Tradeking changes its ACH holding time to 60 business days) with Tradeking, I haven’t actively used my Tradeking account. Recently, I happen to notice [...]

  2. Sarah Says:

    I have positions in tradeking that I wish I never transferred from Zecco what do you suggest I do I really want to move it to interactive brokers or think or swim but I’m afraid I’ll experience the same thing you’ve gone through I’ve already had enough issues with them as it is I don’t need anymore.
    All my positions are at a profit but I still don’t want to sell considering how I got in them all at really great prices.
    TIA

  3. indexfundfan Says:

    Sarah, if you want to transfer out of Tradeking, they will charge a ACAT-out fee ($50 I believe).

    But you might perhaps want to try to move to OptionsHouse which has many good reviews on FatWallet. Currently, OptionsHouse will also reimburse your ACAT fee, which would make your transfer out a no-fee proposition.

    Are your holdings in TK purchased with money that you ACH in? If so, wait 60 days from your last ACH-in transfer before submitting the request to transfer. It should go through. If they disallow it, request for the reason and if it is unreasonable, file a complaint with FINRA.

    By the way, some of my holdings are now with eOption.com. I went with them initially because of their very low margin rates. They subsequently increased their rates but they agreed to keep the old margin rate schedule for me when I complained.

  4. Some Guy Says:

    Sounds like TradeKing really sucks. I’m glad I read this before I opened an account there.

  5. Gunnar Says:

    Tradeking is a joke. I’ve been a customer for over 3 years and they still have a 5 day trading hold on every deposit I make into my account through ACH. I just recently missed out on some big opportunites due to the bullshit 5 day trading hold on my money. I just recently switched to ETrade and transferred all my money out of Tradeking. I would rather pay a few more dollars in commission and deal with a professional broker that doesn’t treat me like a criminal.

  6. dogmanor Says:

    I tried to sell some stock on trade king starting on Monday 09/17/2012. I needed the cash by 09/25/2012. They held the trade in pending for one full day. Then they held it in holding status for another day (Tuesday). Wednesday morning I got an email that the trade was completed and I made a ACH transfer which was denied as it was after 2:55 EST and would not go through until Thursday. Thursday the transfer did not take place and the online transfers screen indicated the transfer was in hold. I called them and they told me that was an error and the transfer would take place Friday (09/21/2012). I did not check the transfer until later in the day to find it was still in hold until the 24th. Monday after 9:00 EST I checked my account and the transfer status was changed to processed, but no money had been transferred. On one more call I was told there would be an additional 3 day hold waiting for an approval agent. I had an emergency and needed the money by the 25th now I’m looking at 10 days total until I can expect my cash. Do not do business with these schiesters.