Hello everybody, 
I open again this topic ancient so that every user of Zecco can express himself concerning any sorts of problems or questions in relation.
I owe clarify a little the situation concerning me with regard to my previous messages...
I signed at the beginning of September an account at Zecco. I notice that I benefit in fact from Margin account, it why my capital is faster available than someone of you...
I am particularly surprised with this fact given that I have NEVER asked or to sign any approval going to the sense of such a demand.....
I had certainly seen well that my Buying Power was the double of my stockholders' equity, but I thought that this margin was indicative and would be operational only on my demand...
Which was my surprise to receive by e-mail one " Day trading margin Call " to settle in 5 days!!! Especially that I was not careful at once in this among any lesw e-mails which I receive every day.
I thus wrote in the customer service, and you made share partially...
fRom Zecco:
"
Dear Valued Customer,
Your recent account activity has generated a Day Trade Margin Call. A day trade is defined as the buying and selling, or selling short and buying to cover, of the same security during the same business day in a margin account. You received the call for exceeding your Day Trade Buying Power on the date the call was generated.
Once the first day trade call has been issued the account is given buying power of 2 times maintenance excess.
Once the first day trade call is past due the account is restricted to cash only purchases (1 times maintenance excess) and one round trip per day.
Please review your account and take the necessary steps to bring your account current. For additional information, including Due Date, please refer to the Margin Call Summary under the Account Records tab of your Zecco Trading Account.
"
From me to Zecco:
"
By reading my e-mails and my account, it seems that I can not rule on it.
Please accept my sincere apologies for this, I am not yet familiar with U.S. rules on the matter.
Could you please help me solve this problem of "Day trade margin call "....
Do I stay in cash for the amount due for three days?
Zecco reply:
"
Thank you for contacting Zecco Trading. The Day Trading call generated in your account was caused by over spending your Day Trading Buying Power. The day trading call is due on 10/10/2008 for the amount of $ xxxx. Please note that you can deposit cash to meet the call by either using an ACH or Wire transfer. Selling security will not reduce the amount of the Day Trading call because it can only be meet by depositing cash or transfer security from another brokerage house. Please act on the call as soon as you can because once the call is pass due, your account will be restricted to sell only status for 90 days
Regarding day trading rules, if you happen to day trades more than 3 times within a 5 business days period, your account will be flagged with a pattern day trader status. When you have a pattern day trader status in your account, you are required to bring your total equity up to $ 25000 or your account will be restricted to sell only for 90 days. You had done 2 day trade on 10/3 which mean that if you are still within the day trading limit. Once you exceed the 3 times limit, you will become a patter day trader.
I hope this information will provide a better understanding on margin calls. "
Well guys, I was able to send capital just and my account is at present my account is blocked, it why I always keep Lehmq because I could not buy back it at present any more if I sold it...
Also note for information that Margin account can be granted only from a minimum $2000 amount.
All this guys, and specially novices, to tell you to be all very careful when you begin just to discover the first pushes of adrenalin which gets a trade...
I have to say all the same that the US rules on the subject are very complicated and restrictive compared with Switzerland...
I have never had this kind of problems to trading since my country...
I wish you all the best!!!
Now, the present story....
--I had sended money by wire trtansfert and they get it on 10/08/08...
My e-mail:
A big thanks for your useful information¨! Please can you confirm to me that my account will be open on monday??
"
Money Deposited to pay a DT call must remain in the account two days before withdrawn."
Best regards
Date, 10/10/08
--No answer from The customer service... My e-mail10/12/08 :
Please can you explain to me what is my situation now ? Do i have again restrictions on my account
Why my buying power is still 0$ ?
thanks for your support
--Reply from the customer service 10/14/08 ....
Dear Valued Customer,
Thank you for contacting Zecco Trading. I am showing that your account is on restriction for two unmet day trading calls on your account. Please review your MyInfo page to see this information. If margin calls are not met then your account is subject to restriction. Your account will be restored on 1/10/2009. If you need anything else please let me know.
Have a great day!
--Well, thanks for the great day... My last e-mail:
Sorry, but i don't understand , the account records show that i don't have any day trade margin call due at this time. On the other hand, if you read the e-mail below from your service signed by John , he tell me that t the call was due on 10/10/08 , the money transfert was in my account for the entire calls in 10/08/08 .
One more time, all my appologies for be out of the rules , but in Switzerland, we don't have restrictive trading rules at this level, and i don't check my e-mail everyday , so i don't see this story of Margin call at the good time... Also, i don't understand why the trading page don't show automaticly a warning if i do something wrong .... I'm really disappointed to get a penalty for 3 months , please check it again if is right or not?...
Also, now, what i must do with this account if i cannot use it ? is there something that i can do for be able to trade a security before 01/10/09 or not? If not ,can i get back my entire money which is actually on this account ? Can i open a new account in Zecco ?
Sorry for my poor english.
Thanks for your support
All this story because i sold LEHMQ @ 0.29 , buy back @ 0.3 and sell @ 0.33 in the same day when my daily buying power was down of this amount because i was "in" in the beginning of the day... if i had the same amount in own cash , no problem, but i sold and as everytime my money was settled in cash, so i bought back and nobody told me that i cannot do it.... The second was on FRE but this one is sure met in the right time. I don't know where this lady from customer service saw 2 day trade margin calls not met .....
All this to say, BE CAREFULL , guys ! Especially those who trade in the first time with an american brocker , the Sec rules are so prohibitive for the small investors....
Best regards
Topic: Zecco (Read 16390 times)
