Where do I go to check if I have strikes against my account?

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 navigating to the “Balances” tab to view “Trade Restrictions & Violations.”
  • The representative clarified that a Good Faith Violation is a common warning when buying and selling securities without using settled funds, but it does not necessarily lead to account restrictions.
  • A link was provided to further educate the user on avoiding cash account trading violations.
Here’s the full thread
Observed
04/07/2023 at 10:44:03 PDT
I think I have a strike against me but I’m not sure.
FidelityAidan
04/07/2023 at 11:01:42 PDT
Thanks for reaching out to us on Discord! I’ll be glad to answer that for you today, but first, I’ve got a few clarifying questions to get out of the way. When referring to “strikes” is there anything specific you’re expecting? Such as a known restriction on your account? Or are you referring to specific trading restrictions that you may have?
Observed
04/07/2023 at 11:08:26 PDT
I think it might have just been a warning. For selling something before the cash had settled
Observed
04/07/2023 at 11:08:57 PDT
I dont have any restrictions right now as far as I am aware
FidelityAidan
04/07/2023 at 11:23:00 PDT
Thanks for that clarifying information. There is actually a place where you can view any restrictions you may have. After login to Fidelity.com, look towards the bottom of your “Balances” tab where you should see “Trading Profile.” From here, you’ll be able to view any restrictions you currently have active on your account by clicking “Trade Restrictions & Violations” From your description of what happened, it sounds like you encountered what’s referred to as a Good Faith Violation (GFV). This is a pretty common warning message to get while trading. This occurs when you buy a security and sell it before paying for the initial purchase in full with settled funds. Only cash or the sales proceeds of fully paid for securities qualify as “settled funds.” Even though you may recieve this warning, you can typically still place the trade. Receiving the warning message also doesn’t mean you’ll be hit the with restriction either. If you’d like to learn more about the types of trading violations which you may encounter, and how to avoid them, feel free to check out this excellent link that I’ll include. It goes into pretty extensive detail! Avoiding Cash Account Trading Violations: https://www.fidelity.com/learning-center/trading-investing/trading/avoiding-cash-trading-violations Of course, if you have anything else that needs some clarification, you can always ask away here!
Observed
04/07/2023 at 11:38:22 PDT
Oh sweet, thanks @FidelityAidan The help is appreciated
FidelityAidan
04/07/2023 at 11:40:29 PDT
You’re most certainly welcome, @Observed. That’s what I’m here for!

Leave a Reply

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