Highlighted
Contributor

I recently opened a brokerage account and started trading stocks. Some day trades. I quickly realized I was getting good faith violations after sells. And even after cash deposits are made, no recourse of the GFVs. I decided to look into opening a margin account which i did not qualify for even after meeting the posted requirements on USAA.com website. calling a representative for more info and clarification and was told could not tell me the minimum requirement because i could lie on my application.  this is not a brokerage i will continue to work with. USAA has been good with my other accounts, but brokerage is not good. 

 

I have a good faith violation. I call and ask how to avoid it. they say deposit cash into account then trade. I deposit cash into account to trade. I get good faith violation. now my account is penalized for 90 days where  i can not make day trades.

 

This is not good customer service and reading other peoples posts it seems i am not the only one. I will be moving my brokerage needs to another company with better information and a transparent qualifying term for margin. such as https://www.tradeking.com/rates/margin they plainly spell out what is required.  USAA brokerage will not tell me becuase they think i will lie on account application. this is unacceptable.

 

1 REPLY

Highlighted

Even though I've invested in stocks for decades and done margin and options trading, I actually had to google to find out what a good faith violation was.  It looks like any brokerage/investor would find the practice unacceptable.  Guess I've never run afoul.  Thanks for expanding my financial education.

 

Ignoring for the moment my thoughts on day trading, I don't think USAA's brokerage services are your best choice for that anyhow.  As such, it is probably good that you discovered that early and can move on to a platform that better serves the needs of a day trader.

 

If I didn't already have a brokerage account elsewhere and was getting started in investing (BTW it is never too early or too late to get started) I'd probably use USAA's services.  They seem convenient.