While the process is straight forward, you can always reach out to the E-Trade customer service that is available 24/7 for assistance. They can provide you with more information on why the account was frozen, how to unfreeze it, and some of the ways you can make sure that it does not get frozen again in the future.
Cash accounts have become an essential part of the online marketplace. As more and more people continue to flood this landscape, there is a growing demand among stakeholders to safeguard customers from fraudulent activities and make sure that their investments are safe. It is as a result of this that many rules have been put in place to regulate trading in cash accounts. One of the most basic rules is that one must make the full payment for the securities before or on the date of settlement.
With so many rules in place, it is easy for clients to breach some of the regulations without their knowledge. When this happens, the user account is frozen, meaning that it cannot be used to complete any debit transactions. In simple terms, it is impossible for the account owner to transfer, withdraw, or complete a purchase using the account, although they can continue to transfer and make deposits into it. There are no specifications on how long an account can remain frozen, although the freeze is lifted immediately after the holder meets the conditions.
In most cases, banks and investment companies need a court order before they can process a freeze, even without notifying the account owner. However, there are some instances where temporary freezers are placed on the account without judgement. In the case of investment accounts, a freeze is usually associated with free riding. This is a scenario where investors try to sell or buy securities without making full payment. When faced with such a freeze, it is possible for the investor to continue trading in securities, although they must fully pay for the trades depending on the dates they are completed.
How to Unfreeze an E-Trade Account
E-Trade account users should not be concerned by account freezes since it can be reversed. Here are details on how to report any an E-trade account that was previously closed.
1. The first step in opening a closed E-Trade account is making sure that the date the account was opened is not earlier than 1 January 2002. It would also be fully compliant with AML requirements. In instances where the request is to open a sub account or a client account, the master account must also be open.
2. Once you have verified this information, log into the account management portal.
3. Navigate to the manager account link and proceed to "settings," after which you click on "reopen account." It is a requirement to update the trading permissions and end any required subscriptions for market data before submitting the request to have your account reopened.
4. Click on the link indicating "update trading permissions."
5. On the next screen, you will see a number of instructions that page you through the process of selecting the different products you are looking to trade and the countries where you will be trading them.
6. Click on the "manage account" tab and select "account settings," after which you will navigate to "close account" and click "reopen" to go back to the reopen account page.
7. Click on the link that requires you to update market data subscriptions and follow the instructions.
8. Go back to the reopen account portal and click back to receive a confirmation code in your email.
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