Clearing house rules

Discussion in 'Retail Brokers' started by KEF, Dec 3, 2002.

  1. KEF


    I'm in the process of switching my accounts around to use Real Tick. I am not happy with what I am finding.
    I currently using both an ameritrade and a Realtick broker account (GlobalTradz).
    I both day trade and swing trade.
    I have no problems with the way day trading margin works, rather the way swing trading is handled.
    Overnight positions held in my realtick account which are then sold, do not have a release on funds until next business day, further, I do not get 2-1 margin on overnight positions.
    Ameritrade works fine in handling both swing and day trades (2-1 and 4-1 margin with instant release of all funds at sale).
    Is there a Realtick broker that can handle both day trades and swing trades well?

    Its odd that Ameritrade handles all types of margin and trades in an account well, but a realtick broker does not.
  2. What you are describing for your realtick account sounds like a cash account. If so, you need to change it to a margin account. If not, I'd be looking quick for another broker. What you're experiencing is not correct for a margin account. Good luck
  3. KEF


    I have a margin account, but am told that it is the clearing house that determins when funds are released. The Clearing Firm is CCS (computer clearing services)
  4. Please, somebody correct me if wrong; but that sounds like an excuse for something. I've had 4 different brokers, and personally know at least 2 realtick brokers, and if you have a margin account, you're funds are available immediately upon liquidation.
  5. The clearing firm is able to trade on your cash available up to a minimum of 10 to 1 leverage. They have a vested interest in not letting you use your cash as long as you and your broker will allow it. Look for a broker using a different clearing firm.

    Good Luck
  6. KEF


    OK, I talked to another Realtick broker. He said that a trader should still get 2-1 margin on overnight positions. however he said that funds from the sale of overnight positions would not be available until next business day as well.
    This means that both Penson clearing house and Computer Clearing Services Clearing house have similar rules. Funds from overnight positions are not available until next business day.

    Is this an issue of Reatick not being updated intraday? or just a clearing house issue?

    What are others experiences with this?
  7. KEF


    Yet another reply to myself....but FYI

    I talked with Townsend about the problem. basically, Realtick servers are not updated with this information from overnight positions from the clearing houses. This means that the Realtick server doesn't know the overnight cost basis of the trade and cannot update your account to use funds immediately after a sell. This sucks and means that if I want to use realtick, I must also use a non realtick broker for swing trades....
    Unless, of course, I am still wrong and someone else has a solution.