Washington, DC — The Financial Industry Regulatory Authority FINRA announced today that it has fined Scottrade, Inc. FINRA determined that Scottrade allowed certain margin account customers who executed a high volume of trades to continue to trade after the value of their accounts fell below the minimum equity requirement. Shorris, FINRA Executive Vice President and Executive Director of Enforcement. A day trader is someone who buys and then sells the same stock in the same day in a margin account.

A pattern day trader is generally defined as a customer who day trades four or more times in five business days.

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But customers who failed to restore their account values were allowed to continue day trading without restrictions. Scottrade did not take action to restrict those customers' margin until after the customers failed to heed the second notice.

In all, Scottrade permitted customers in 11, margin accounts in which pattern day trading was being conducted to executeday trades when the values of their accounts were below the minimum equity requirement.

FINRA also found that from February through JanuaryScottrade improperly extended credit to certain cash account what does the limit price mean in buying stocks by failing to obtain timely cash payment from the pattern day trader violation for their purchases and by failing to cancel or liquidate those transactions within the time period specified by Federal Reserve Regulation T.

When a customer did not have sufficient funds to cover the cost of the stock purchase in a cash account, Scottrade sent the customer a "sellout" letter on the date the funds were due. This had the effect of allowing the customer additional days to pay for the transactions, in violation of Regulation T. In concluding this settlement, Scottrade neither admitted nor denied the charges, but consented to the entry of FINRA's findings.

Investors can obtain more information about, and the disciplinary record of, any FINRA-registered broker or brokerage firm by using FINRA's BrokerCheck. FINRA makes Hafizzat forex available at no charge.

Inmembers of the public used pattern day trader violation service to conduct Investors can access BrokerCheck at www. FINRA, the Financial Industry Regulatory Authority, is the largest emerging markets stock index fund admiral shares regulator for all securities firms doing business in the United States.

FINRA is dedicated to investor protection and market integrity through effective and efficient regulation and complementary compliance and technology-based services.

FINRA touches virtually every aspect of the securities business - from registering and educating all industry participants to examining securities firms, writing and enforcing rules and the federal securities laws, informing and educating the investing public, providing trade reporting and other industry utilities, and administering the largest dispute resolution forum for investors and registered firms.

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Arbitration and Mediation Overview Learn About Arbitration Learn About Mediation Initiate an Arbitration or Mediation Information for Arbitrators Information for Mediators. Home About FINRA Newsroom Compliance Tools Contact Firm Gateway. You are here Home Newsroom News Releases News Release For Release: Thursday, April 1, Firm Also Improperly Extended Credit to Cash Account Customers Washington, DC — The Financial Industry Regulatory Authority FINRA announced today that it has fined Scottrade, Inc.

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