Q: Can a broker (Charles Schwab) randomly closed my broker account.
I have my 401K and a 529 account with Charles Schwab. I opened a new acct on the 25th of Sept to attempt to trade. On the 6th they blocked my account for "fraudulent" reasons and the investigative team we supposed to call back within 48 hrs to discuss the matter. After several calls for answers, they refuse to tell me what the status of my account is. Almost a week later, they continue to hold MY MONEY ransom while "investigating". Every time I call, they are able to very who I am with security questions. However, they claim they are unable to provide me detail of the investigation. I cannot access my money, I have an open option that could lose or gain, and I am unable to trade, potentially llosing money. I am at my wit's end with zero answers and feel defeated and robbed. What are my options? How can it be legal to hold my money hostage while doing an investigation? I have documents showing the transfers from my other banks.
A: You need to put them on Notice in writing of your objection to the freeze, remind them you have open positions and your intention to sue them for any and all damages unless they take your orders and unfreeze the account or hire an attorney to do that immediately.
2 users found this answer helpful
A: This is a major problem. You may need to think about hiring counsel to deal directly with Schwab, especially if you have open options positions.
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