Need urgent help: ThinkorSwim (TOS) want to close my account unilaterally that will c

[chandra_abij]

Dear Fellow Trader,

I am really surprise and upset that Thinkorswim suddenly want to close my account.
I have been their loyal and good customer for more than 2 years. TOS is the only options broker for me. I have generated several thousands dollar in commission alone for them.

I also have long position (long call) that currently is in losing position; I have expected the position will be loss in the short term period, but I believe it will be profitable in longer term. But, if suddenly TOS liquidate all my position, I will be loss several thousands dollars

Moreover, I have spent countless hours to educate myself with TOS tools in last 2 years. I have invested a lot of my time and resources (seminars, trainings, books) to have more understanding about the TOS tools. Finally, I am comfortable with the tools and they suddenly want to take that away.

I can not accept their explanation about the restricted country, because when I opened account with them, everything was OK. They didn’t mention anything about restricted country. Any Indonesian citizen was able to open account with them.

Even now, other options brokers still accept international customer from Indonesia! So I think there is no government to government problem. But, why all the sudden, TOS have problem with account from Indonesia?

I think this is an unjustified practice for well known service provider, such as ThinkorSwim.

If they don’t want international account, they should say so from the beginning.

I thought they were a good company that will not do any harm to their customer. I was wrong and it will cost me a lot, sadly.

International account holder of TOS, beware, this could happen to you too!

Now, I am really upset and disappointed. I don’t want TOS to close my account which will immediately cause loss position for me. My countless hours and resources that I have invested will also be gone.

I wonder if any fellow trader can give me advice where I file a complaint to third party (probably government agency) so TOS won’t close my account unilaterally.

Or what else should I do?

Thanks in advance for any advice.

Regards,

Chandra



Note: the following is the email from ThinkorSwim that I just received.

After assessing global requirements for conducting international business, thinkorswim by TD Ameritrade has decided that we will no longer open or maintain accounts in certain international jurisdictions. Your thinkorswim by TD Ameritrade account ending in ******* is affiliated with at least one of these jurisdictions in which we will no longer provide brokerage services. As a result, your account will be limited to liquidating transactions after February Option Expiration which occurs February 19, 2011. What this means for you:
Beginning on Tuesday, February 22, 2011, you will be limited to closing existing positions in your account which includes Securities, Futures and/or Forex. You will not be able to open any new positions.

In addition, thinkorswim by TD Ameritrade will not be able to accept additional funding in your account. Please do not attempt to add or transfer any additional funds or securities to your account as these requests will be returned to you unless you are required to meet a margin call in your account.

All accounts are subject to closure on or before February 28, 2011.
If you wish, you can liquidate your account assets or transfer them to another firm. We know that this decision may be causing an inconvenience for you thus where applicable thinkorswim by TD Ameritrade will assist you by paying for account closure fees or assisting with the cost of your wire transfer fee. Please let us know if we can assist you with this process. For more information, or if you have any questions, please contact us at [email protected]. We are available 24 hours a day, seven days a week. Please know that we fully appreciate your past business and regret any inconvenience this may be causing you. Sincerely, thinkorswim by TD Ameritrade thinkorswim, Division of TD Ameritrade, Inc., member FINRA/SIPC/NFA. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and the Toronto-Dominion Bank. Copyright 2011 TD Ameritrade IP Company, Inc. All rights reserved. Use with permission.www.thinkorswim.com

 

[leonarda]

it won't "cause" you a loss, you already have that loss! you are not thinking right. It maybe best to close the position and open an account with another broker and reopen the position with them if you think the position is good.

 

[chandra_abij]

leo,

thanks for your response.
But when you crate new long options call position for expiration in 1 year, you know that you will be loss in short term (within 1 or 2 months) due slippage. It can take several months (to let it go to your expected direction far enough) to be in profitable zone.

I expect to open it for more than 6 months, but now they forcefully close when i just open it for 2 months. This cause my thousands dollar loss for sure.

but that is not the main point. Can any broker just liquidate and close their customer? disregarding any suffering that it may cause to its customer

regards,
chandra

 

[wackypete2]

Your explanation of why you can't open a new position with another broker makes no sense.

Can any broker just liquidate and close their customer? disregarding any suffering that it may cause to its customer.

They can liquidate positions or close accounts at will. Read your terms and disclosure statement you signed when you opened an account. Just because they accepted accounts from Indonesia in the past doesn't mean they have to forever. They are allowed to change their mind, and apparently after some sort of review. I understand it's inconvenient, it's a mess, and it sucks for you, but I think you are over reacting. Open another account with some other broker and move on. Lots of US clients had their forex accounts closed worldwide due to new regulations.

Peter

ADDED: It appears that you can transfer your existing account as is to another broker without closing any positions. Should take about 7-10 days and you will be ready to go!

 

[Lodian1019]

Read the small print and always have a back up plan.

Lodian

 

[perishabull]

Chandra I feel exactly as you do. I am based in the UK and my account is to be closed by 22nd August 2011. The platform is fantastic for analysis.

You can access a different version of the platform via the CBOE website however quotes are delayed but you can still access some features of the platform;

http://www.cboe.com/tradtool/papermoney.aspx

You just need to register with a password to access it. I'm a bit happier now as at least I can still use the same tools for my chart analysis.

In my opinion the reason they are closing from certain markets is because, following the takeover by TD Ameritrade there would effectively be conflicts of interest between ThinkorSwim and TD Ameritrade for these markets.

Just my 2c