Understand and resolve Good Faith Violations on Fidelity accounts, with guidance on trading rules, avoiding violations, and managing unsettled funds to maintain account compliance.
Summary of User’s Issue and Solutions Discussed: The user is concerned about the availability of funds deposited on May 2nd for withdrawal on May 3rd, specifically regarding the timing of when the funds will be settled to avoid a Good Faith Violation if they sell securities with those funds. A representative from Fidelity indicated that…
Summary of User’s Problem and Solutions: The user, drazgo, is experiencing an issue with the trading dashboard where trades are defaulting to margin instead of cash, making it difficult to execute trades for shares purchased with cash. Fidelity representatives informed the user that they can switch the trade type from margin to cash before finalizing…
Here’s the summary of the user’s issue and the solutions presented: Main Problem: The user is unable to trade with unsettled funds in their account, which restricts their trading ability until the funds settle after about five days. Possible Solutions: Check the Message Center on Fidelity.com for any notifications regarding account restrictions. Review the potential…
Main Problem: The user is confused about whether extended hours trading is available for minor accounts and is unclear about receiving a warning regarding a Good Faith Violation when placing trades. Solution for Extended Hours Trading: Fidelity confirmed that extended hours trading is not available for Fidelity Youth accounts. Explanation of Good Faith Violation: The…
Summary of the user’s problem and solutions discussed: Main Problem: The user, PokestarFan, is concerned about potentially violating day trading regulations after making small trades with settled cash in their account. Solution 1: Fidelity representatives clarified that if trading is strictly in a cash account, the user will not be subject to Pattern Day Trader…
Summary: The main problem reported by the user is the misleading “available to invest” value, which can lead to confusion and warnings when trying to invest with unsettled funds. Fidelity explains that it generally takes 2-6 business days for deposited funds to fully collect in the account, and that stocks and ETFs take two business…
Here’s a summary of the main problem and discussed solutions from the conversation: Main Problem: User N₿Aneil is unsure about how dividends and margin work in their brokerage account, particularly whether dividends pay down margin debt or are available for withdrawal. Solution: Fidelity representatives clarified that any cash deposited, including dividends received, will first be…
Summary of User’s Problem and Solutions Discussed: The user is trying to understand how margin-related balances are calculated, particularly in relation to day trading and the implications of buying and selling options contracts with settled and unsettled funds. Fidelity’s representative clarified that the user’s example involved day trading and explained the definition of a day…
Here’s a summary of the main problem and solutions discussed in the post: Main Problem: The user is unable to place a buy market order for $7.37 due to a warning about exceeding their settled cash balance, despite having that amount available to trade. Solution Provided: The warning is only a notification and does not…
Summary of User’s Concern and Solutions Discussed: The user is concerned about what happens if their Butterfly PUT trade expires in-the-money (ITM) while trying to avoid being labeled a Pattern Day Trader (PDT). Fidelity provided links to resources on Long and Short Butterfly Spread strategies to help the user understand their options. They explained the…
Summary of User Issue and Solutions: The main problem reported by the user was confusion over why their settled cash was larger than the amount available to trade after receiving a direct deposit for the first time. Fidelity explained that the discrepancy could be due to funds being committed to open orders, affecting the cash…
Here’s a summary of the main problem and solutions discussed in the post: Main Problem: The user is inquiring whether Fidelity resets the pattern day trader (PDT) designation for accounts flagged as such. Solution Provided: A one-time request for removal of the PDT designation is possible if the user confirms they will no longer engage…
Summary of User’s Issue and Solutions Discussed: The user is concerned about potentially having a strike or warning related to trading, specifically concerning a Good Faith Violation (GFV) for selling a security before the cash had settled. The support representative explained that the user can check for any account restrictions by logging into Fidelity.com and…
Summary of Main Problem and Solutions Discussed: The user, Beaverius of Rome, is frustrated that an electronic funds transfer to their Fidelity account took longer than expected, with $0 available for trading six business days after the transfer was reported as received. Fidelity explained that Electronic Funds Transfers (EFTs) typically take 2 to 6 business…
Summary of User Problem and Solutions: The user, UNFAZEDinvestments, is facing a requirement of $25,000 to buy a stock due to being classified as a Pattern Day Trader (PDT). To resolve this, the user must ensure their account maintains the minimum equity of $25,000 to avoid restrictions on buying power. If the account falls below…
Here’s a summary of the main problem and solutions discussed in the conversation: Main Problem: The user is inquiring about the time it takes for mobile deposits to clear for their Cash Management Account and Fidelity Brokerage Account. Solution: Mobile check deposits and Electronic Funds Transfers (EFTs) can take 2-6 business days to fully collect….
Summary of User’s Concern and Solutions Discussed: The user is concerned about the potential penalties for selling stocks on the same day due to having a minor account. It is clarified that while buying and selling on the same day is allowed, doing so without settled funds can lead to a good faith violation. To…
Here’s a summary of the main problem and solutions discussed in the conversation: Main Problem: The user is receiving a PDT (Pattern Day Trader) warning message despite having an account balance over $25,000. Suggested Solution: Fidelity’s representative advises the user to contact them through other channels for a secure review of the account to determine…
Summary of User’s Concerns and Solutions: Main Problem: The user needs to fund their individual brokerage account but is confused because the account is labeled as the funding account for their crypto account, and they want to short-sell Boeing quickly. Solution: To short-sell, the user must enable the margin feature on their brokerage account, which…
Main Problem: The user is not receiving good faith violation reminders or warnings in the app and is unsure if this feature has been removed. Solution 1: Warnings or reminders can be found on the preview order screen of an order ticket in the app. Solution 2: The user can check their good faith violation…