Can someone explain this to me about Ameritrade?

Submitted by ImaginarySector366 t3_11cztyr in wallstreetbets

Serious discussion. I have 3 different accounts, and all of them have options level 2 and 4. And yeah I lost on all of them. But that’s not the point loss or win. I really want to know what logic is this brokerage gangs have?????

There’s no inheritance and I am not a student btw. I just wanted to test a new account.

I put Student and Inheritance source of funds. Keep in mind, not a margin account. Not margin, so I won’t be borrowing money from them. No risk to them at all.

They didn’t approve me for options tier 2.

I emailed them, and they said based on source of funds and employment status, we can’t approve you for tier 2.

Don’t tell me they are looking after my well being and making sure as a student I don’t risk my inheritance money.

I don’t get this. It’s my money and even if I have no experience in options, it’s my money. Why are they keep gating this, and forcing me to use tier 1 and buy stocks and sell covered calls.

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VisualMod t1_ja5xp5l wrote

>It's most likely because they don't want to take on the liability of someone with no experience in options trading losing a lot of money. By keeping you at tier 1, they can limit your losses and protect their own interests.

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Fun-Exercise-7196 t1_jaai283 wrote

Yes, no experience is the real reason. Seen it first hand many times. Blow up your account and blame the Brokerage.

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[deleted] t1_ja5xymt wrote

[deleted]

−5

stiveooo t1_ja6h49k wrote

its like when americans need safety labels for anything, and if they drink nails they start to sue everyone cause they didnt warn him.

main goal is protecting the company from dumb americans

6

throwitawayCrypto t1_ja838og wrote

This is a hilariously bad excuse for corporations just being shitty. Get the fuck out of here lmao

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notpaultx t1_ja5zhn9 wrote

Nope, a lawyer can still make a lawsuit out of it and if it goes to court (where they ultimately win) they would still be out thousands of dollars in legal fees. It's risk mitigation

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ImaginarySector366 OP t1_ja5zvau wrote

Actually!!!! Okay this makes sense. Cause I was like no way they’re looking out for my money and my risk of losing. Finally peace that they’re just still blood sucking monster just looking out for themselves.

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stiveooo t1_ja6h7ct wrote

thats why in other countries you can do options with 10$ no question asked, cause they dont sue the company just cause they lost the house.

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OKahnloc t1_ja6bg0e wrote

I could be wrong but I think you need a margins enabled account for level 2 options.

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GME_dat_puh t1_ja5z629 wrote

It's because of how poor your are, you need to have more money in your count to unlock the features of having a higher amount in your account

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ImaginarySector366 OP t1_ja61mge wrote

So they’re okay with you putting more money and risk your Good Income in options.

But are taking care of me not to lose my poor income.

Wow they must be a church.

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GME_dat_puh t1_ja61uae wrote

It was sarcasm my guy lmao, but yea it might actually be somewhat true cuz I got approved for level 3 after having more cash in my account

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ImaginarySector366 OP t1_ja6218j wrote

Mine was sarcasm too. How they let higher money accounts gamble on options but limit smaller accounts.

0

GME_dat_puh t1_ja627wk wrote

Yea, it sucks but it’s true, just like PDT they make it harder to trade with a smaller account

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ImaginarySector366 OP t1_ja6299r wrote

i don’t know about the downvotes. I guess this sub doesn’t want to understand the criteria of brokerage and the logic behind it. they’re downvoting my post too for a question.

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onion4everyoccasion t1_ja7p64m wrote

Is this the guy who didn't visit porn sites when he was 17?

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VisualMod t1_ja5xoml wrote

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1

EvilDrCoconut t1_ja60ogn wrote

Weird, I just opened an account not an hr ago and got lvl 2 options access. I have traded before, own in a Roth IRA, and some smaller stocks, but nothing too serious. I do have a degree in business with focus in econ/investing. But my main degree is a master's in CS, so it might also be because I have a good income?

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ImaginarySector366 OP t1_ja61ulp wrote

Exactly. So they’re fine with higher accounts risking money on options but not okay with smaller accounts risking money on options.

Regardless, it’s my money, and if I don’t understand options well it’s my loss. I don’t get what their criteria is. I wanna know how do they decide?

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350rn t1_ja67bi3 wrote

Probably more about appropriate risk profiling. When you sign up for an options account they assess whether or not taking on risky positions matches the type of investor you are. That’s one of the reasons they ask if you have prior experience with derivatives and what your short/long term portfolio growth goals are.

If you say you have no verifiable source of income, there are likely some regulations that come into play preventing the broker from giving you access.

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captiancb t1_ja9tkba wrote

Cause you’re not Gordon Gecko lol

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MaxxForceDT t1_jab57e5 wrote

You can Blow up a Account quickly and violantly with Options. some have infinite losses. In order to keep you from costing them money they are keeping you from Blowing yourself up. Why do you need a new account? Just wait a bit of time and let the account 0 Itself Out for YTD.

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80milesbad t1_ja6jfm5 wrote

Same thing has happened to me w Ameritrade and I actually do have an inheritance and not asking for margin. Just want to buy some basic options and was only cleared for covered calls. I agree that it should be my business if I want to risk my own money. They seem fine with me risking it on stocks.

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ImaginarySector366 OP t1_ja6ksgp wrote

🤣🤣 I thought the same like what do they want. Try switching to margin account and deposit $2000+, you don’t have to use Margin if you have money anyway but I guess they want Margin accounts for options level 2. I guess they like it that way.

I honestly still don’t see logic behind their regulations. But someone said that to prevent lawsuits etc., which is weird? Imagine suing them, oh you approved me for options without experience and I am poor and as a regard I lost on options I am suing you give me my money back 🤣🤣🤣🤣 Who makes Regulations and accept lawsuits like that, man.

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80milesbad t1_ja7jrcs wrote

Yeah, like anyone on here who has posted massive loss porn should all be suing their brokerages for letting them do that?? 😆

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SuboptimalStability t1_ja7cyna wrote

What I don't get is how you have 3 other accounts and they didn't even bother to cross-check

It honestly seems they don't care what you put on the forms as long as yoh comply with their morality/financial rules

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giovannigiannis t1_ja7i9o6 wrote

I use TD, but not options.

I didn’t even know they had different tiers.

Can anyone explain the tiers, and how do I unlock them?

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