I just tried to make a trade in our club's account (at Schwab) and received a message that the purchase order was blocked for this account. The account had sufficient purchasing power to make the trade. When I spoke with a representative, I was told that Schwab had made a corporate decision to close the account and would not allow any new positions to be opened. Apparently they mailed us a letter last week to that effect suggesting that we move elsewhere. I don't receive correspondence directly (part of our checks and balances routine) and I haven't been notified that it has arrived. This isn't a small account (it's well into 6-figure territory).
Consider this a warning for other investment clubs.
Ira Smilovitz
David Karbulka on
Fidelity has been great for us. Little time consuming opening the account but service has been wonderful ever since.
I just tried to make a trade in our club's account (at Schwab) and received a message that the purchase order was blocked for this account. The account had sufficient purchasing power to make the trade. When I spoke with a representative, I was told that Schwab had made a corporate decision to close the account and would not allow any new positions to be opened. Apparently they mailed us a letter last week to that effect suggesting that we move elsewhere. I don't receive correspondence directly (part of our checks and balances routine) and I haven't been notified that it has arrived. This isn't a small account (it's well into 6-figure territory).
Consider this a warning for other investment clubs.
Ira Smilovitz
Robert Shaw on
On Mar 12, 2025, at 12:56 PM, David Karbulka via bivio.com <user*26468500001@bivio.com> wrote:
Fidelity has been great for us. Little time consuming opening the account but service has been wonderful ever since.
I just tried to make a trade in our club's account (at Schwab) and received a message that the purchase order was blocked for this account. The account had sufficient purchasing power to make the trade. When I spoke with a representative, I was told that Schwab had made a corporate decision to close the account and would not allow any new positions to be opened. Apparently they mailed us a letter last week to that effect suggesting that we move elsewhere. I don't receive correspondence directly (part of our checks and balances routine) and I haven't been notified that it has arrived. This isn't a small account (it's well into 6-figure territory).
Consider this a warning for other investment clubs.
Ira Smilovitz
ira smilovitz on
I know. We were already in the process of switching to Fidelity. They do have a difficult process to negotiate when opening the account (I have another club account at Fidelitiy already), but are great afterwards.
I just tried to make a trade in our club's account (at Schwab) and received a message that the purchase order was blocked for this account. The account had sufficient purchasing power to make the trade. When I spoke with a representative, I was told that Schwab had made a corporate decision to close the account and would not allow any new positions to be opened. Apparently they mailed us a letter last week to that effect suggesting that we move elsewhere. I don't receive correspondence directly (part of our checks and balances routine) and I haven't been notified that it has arrived. This isn't a small account (it's well into 6-figure territory).
Consider this a warning for other investment clubs.
Ira Smilovitz
Peter Dunkelberger on
Ira--we initially tried to sign up as a partnership, and then they switched gears and said we had to sign up as an investment club. What gives with investment clubs that make them such a pain in the butt??
I know. We were already in the process of switching to Fidelity. They do have a difficult process to negotiate when opening the account (I have another club account at Fidelitiy already), but are great afterwards.
I just tried to make a trade in our club's account (at Schwab) and received a message that the purchase order was blocked for this account. The account had sufficient purchasing power to make the trade. When I spoke with a representative, I was told that Schwab had made a corporate decision to close the account and would not allow any new positions to be opened. Apparently they mailed us a letter last week to that effect suggesting that we move elsewhere. I don't receive correspondence directly (part of our checks and balances routine) and I haven't been notified that it has arrived. This isn't a small account (it's well into 6-figure territory).
Consider this a warning for other investment clubs.
Ira Smilovitz
David Karbulka on
I would think it's the infrequency.
Agents are probably uncertain how to handle them which leads to delays while process is being researched.
Ira--we initially tried to sign up as a partnership, and then they switched gears and said we had to sign up as an investment club. What gives with investment clubs that make them such a pain in the butt??
I know. We were already in the process of switching to Fidelity. They do have a difficult process to negotiate when opening the account (I have another club account at Fidelitiy already), but are great afterwards.
I just tried to make a trade in our club's account (at Schwab) and received a message that the purchase order was blocked for this account. The account had sufficient purchasing power to make the trade. When I spoke with a representative, I was told that Schwab had made a corporate decision to close the account and would not allow any new positions to be opened. Apparently they mailed us a letter last week to that effect suggesting that we move elsewhere. I don't receive correspondence directly (part of our checks and balances routine) and I haven't been notified that it has arrived. This isn't a small account (it's well into 6-figure territory).
Consider this a warning for other investment clubs.
Ira Smilovitz
Scott Mace on
We have Schwab and it has been great for us.
From: club_cafe@bivio.com <club_cafe@bivio.com> on behalf of ira smilovitz via bivio.com <user*2883400001@bivio.com> Sent: Wednesday, March 12, 2025 10:49 AM To: The Club Cafe <club_cafe@bivio.com>; troppus@bivio.com <troppus@bivio.com> Subject: [club_cafe] Schwab closing investment club accounts!?!
I just tried to make a trade in our club's account (at Schwab) and received a message that the purchase order was blocked for this account. The account had sufficient purchasing power to make the trade. When
I spoke with a representative, I was told that Schwab had made a corporate decision to close the account and would not allow any new positions to be opened. Apparently they mailed us a letter last week to that effect suggesting that we move elsewhere. I don't
receive correspondence directly (part of our checks and balances routine) and I haven't been notified that it has arrived. This isn't a small account (it's well into 6-figure territory).
Consider this a warning for other investment clubs.
Ira Smilovitz
Scott Stambaugh on
We are in the process of switching to Fidelity from Schwab because we are unable to transfer shares to departing members. It has not been a miserable process but we are still working through the process.
I just made 3 trades in our Schwab account with no problems today.
I just tried to make a trade in our club's account (at Schwab) and received a message that the purchase order was blocked for this account. The account had sufficient purchasing power to make the trade. When
I spoke with a representative, I was told that Schwab had made a corporate decision to close the account and would not allow any new positions to be opened. Apparently they mailed us a letter last week to that effect suggesting that we move elsewhere. I don't
receive correspondence directly (part of our checks and balances routine) and I haven't been notified that it has arrived. This isn't a small account (it's well into 6-figure territory).
Consider this a warning for other investment clubs.
Ira Smilovitz
mp on
FWIW, Had zero issues opening two investment club brokerage accounts at eTrade. They literally have a specific application for investment clubs.
Ira--we initially tried to sign up as a partnership, and then they switched gears and said we had to sign up as an investment club. What gives with investment clubs that make them such a pain in the butt??
I know. We were already in the process of switching to Fidelity. They do have a difficult process to negotiate when opening the account (I have another club account at Fidelitiy already), but are great afterwards.
I just tried to make a trade in our club's account (at Schwab) and received a message that the purchase order was blocked for this account. The account had sufficient purchasing power to make the trade. When I spoke with a representative, I was told that Schwab had made a corporate decision to close the account and would not allow any new positions to be opened. Apparently they mailed us a letter last week to that effect suggesting that we move elsewhere. I don't receive correspondence directly (part of our checks and balances routine) and I haven't been notified that it has arrived. This isn't a small account (it's well into 6-figure territory).
Consider this a warning for other investment clubs.
Ira Smilovitz
Jennifer P on
Interesting, our club has been with ETrade for years and have no heard of a specific application for investment clubs.
ETrade has been AWFUL for making account access changes when our club changes officers. ETrade has told us several different processes and yet when we complete them, it's always another process, another form and something else to do. After 6+ months
of the run around we gave up and opted to move the account.
I would not recommend ETrade/Morgan Stanley for any account.
From: club_cafe@bivio.com <club_cafe@bivio.com> on behalf of mp via bivio.com <user*41402400001@bivio.com> Date: Wednesday, March 12, 2025 at 8:17â¯PM To: club_cafe@bivio.com <club_cafe@bivio.com> Subject: Re: [club_cafe] Schwab closing investment club accounts!?!
FWIW, Had zero issues opening two investment club brokerage accounts at eTrade. They literally have a specific application for investment clubs.
Ira--we initially tried to sign up as a partnership, and then they switched gears and said we had to sign up as an investment club. What gives with investment clubs that make them such a pain in the butt??
I know. We were already in the process of switching to Fidelity. They do have a difficult process to negotiate when opening the account (I have another club account at Fidelitiy already), but are great afterwards.
I just tried to make a trade in our club's account (at Schwab) and received a message that the purchase order was blocked for this account. The account had sufficient purchasing power to make the trade. When
I spoke with a representative, I was told that Schwab had made a corporate decision to close the account and would not allow any new positions to be opened. Apparently they mailed us a letter last week to that effect suggesting that we move elsewhere. I don't
receive correspondence directly (part of our checks and balances routine) and I haven't been notified that it has arrived. This isn't a small account (it's well into 6-figure territory).
Consider this a warning for other investment clubs.
Ira Smilovitz
Barbara Weber on
Thanks, Jennifer. And so it goes! It seems no one really wants to deal with investment clubs.
Interesting, our club has been with ETrade for years and have no heard of a specific application for investment clubs.
ETrade has been AWFUL for making account access changes when our club changes officers. ETrade has told us several different processes and yet when we complete them, it's always another process, another form and something else to do. After 6+ months
of the run around we gave up and opted to move the account.
I would not recommend ETrade/Morgan Stanley for any account.
Ira--we initially tried to sign up as a partnership, and then they switched gears and said we had to sign up as an investment club. What gives with investment clubs that make them such a pain in the butt??
I know. We were already in the process of switching to Fidelity. They do have a difficult process to negotiate when opening the account (I have another club account at Fidelitiy already), but are great afterwards.
I just tried to make a trade in our club's account (at Schwab) and received a message that the purchase order was blocked for this account. The account had sufficient purchasing power to make the trade. When
I spoke with a representative, I was told that Schwab had made a corporate decision to close the account and would not allow any new positions to be opened. Apparently they mailed us a letter last week to that effect suggesting that we move elsewhere. I don't
receive correspondence directly (part of our checks and balances routine) and I haven't been notified that it has arrived. This isn't a small account (it's well into 6-figure territory).
Consider this a warning for other investment clubs.
Haven't faced an issue where we've needed to inform eTrade of internal club matters. Now I'm worried that we're out of compliance on some important governance item.