|To: Ga Bard who wrote (290)||2/8/2004 2:37:40 PM|
|From: Patricia Meaney|| Read Replies (1) | Respond to of 400|
I don't think you are understanding this Reg T correctly.
First off, let me just say that I can't believe that I am actually going to defend Etrade on this since I can't stand them and they have caused me so much distress over the past few months.
You mentioned that you think Etrade is interpreting this REG T so that they will make money off of us, right?
-First of all, if you change your cash account to a margin account, and use only those available funds that haven't reached settlement, then they do not charge interest as long as you don't go past what your actual cash amount is. In other words, you could trade the same way you use to with your cash account as long as you don't go into margin and start borrowing funds that you don't have. Having the margin account just gets around the RegT rule and lets you trade with your unsettled funds - that's it - no interest charged there.
- Second, they are actually losing money on the RegT when you think of it. For any of those people who choose not to switch to a marign, they have to wait the three day settlement to resume trading - that is lost commissions for Etrade!
Now, that I defended these bums, let me tell you that when I change my account from a cash account to a margin account I ran into major problems! I don't know if this was an isolated issue with my account, or if it happened to anyone else, but the transition was not smooth to say the least! The stocks that I bought from my cash account weren't being recognized when it became a margin account and it would appear that I was shorting stocks after I would sell them. Then cash three times mysteriously disappeared from my account out of no where - all three times it happened 10 minutes before the opening bell. They were able to give it back to me after I called and brought it to their attention, but they have no idea how it happened all three times.