What you should know if you use TDAmeritrade....

Posted by: cervelorider in Springheel Jack

Tagged in: trading , Humor

cervelorider

I've been with this brokerage for about six years.  I have five accounts of various types with them, and while sometimes it has been a bumpy relationship, I've pretty much put up with it because I have negotiated a $5 comission per trade, and I don't get involved with too many complex situations so I really didn't have complex needs from them.

Yesterday however, I was sold out of three dividend positions I had recently been paid.  I've been enrolled in Dividend Re-investment (DRIP) for about two years.  I possessed the shares, and then they were sold off completely liquidating my positions in those companies.

When I called to find out what happened, I was told that "new company policy" was to liquidate "small amounts" of shares that individual investors received because (in their words)  "people don't like to hold small amounts of shares in their accounts".  Mind you, these weren't fractional positions...the number of shares they sold were positions of 171, 45, and 97.  Yes, they were smaller positions, but that is my strategy...I buy these things, hold through the ex date or when it is profitable after that, and then let the money grow.  It's basically free cash.  I have (had) 41 positions built in this way.  I'd planned on simply letting these accumulate.

Anyway, what makes me absolutely livid is that they think they know what is best for my money, AND that they would reach into someone's account and make sales without consent. 
Wether or not you agree with my strategy, I'd think most people who do their own investing do so because they want to control their own future, and not have a third party make your decisions for you.  Be warned if you have these guys...as for me, I'm now looking for a new broker.