Ameritrade Clipped Me for $38 Again

By on March 30, 2020

HB4116A big source of aggravation for me is Ameritrade’s policy of charging a $38 fee for reorganizations, without notification or consideration of the position’s value. I noted a few days ago they clipped my son this ludicrous $38 fee on Key Energy, which had a reverse split and a total value of 4 cents, putting him into a negative margin position.

There is no notification to the account holder of upcoming stock or ETF split actions. This caused me to monitor Fidelity’s split calendar here:

https://eresearch.fidelity.com/eresearch/conferenceCalls.jhtml?tab=splits

I just found out today that one of my current holdings XOP and former holding XES had reverse splits today. For some reason the Fidelity site didn’t list the recent splits of XES and XOP. So I unwittingly was ripped off for $38 when XOP completed a 1:4 reverse split today.

This led me to search for another calendar that does list them which I found here:

https://www.marketbeat.com/stock-splits/

I’m looking out for Global X MLP ETF (MLPA) to do a reverse split in the near future since they are struggling to hold $3.

I try to put this in perspective since $38 is approximately what these clip-joints charged in the past for commissions when I was first starting out.

Ameritrade doesn’t charge the $38 fee on their customers with assets over $100,000.00; only the little guys pay.

I’m considering transferring all family assets out of Ameritrade because this really chaps my hide.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>