Some Investment Firms' Websites Still Slow During Market's Drop
February 06 2018 - 2:47PM
Dow Jones News
By Daisy Maxey
The slowdowns and outages that plagued the websites and mobile
apps of investment firms during Monday's stock market rout plagued
at least two firms Tuesday during the sharp drop at the open,
frustrating investors looking to check their account balances or
execute trades.
Investors complained online Tuesday morning that they weren't
able to log into their accounts at Fidelity Investments or put in
orders on Fidelity's Active Trader Pro. Investors also cited a
slowdown on TD Ameritrade Holding Corp.'s website Tuesday after
similar slowness on the discount brokerage's mobile app during
Monday afternoon's 1,100-point drop in the Dow.
Mark Kaplan, a retired investment banker in Minneapolis, said he
was unable to log into his TD Ameritrade account using his mobile
app Monday as he sought to buy stocks to take advantage of the
market gyrations. Mr. Kaplan said he was unable to access his
account on his personal computer at times on Tuesday morning, but
was able to execute some trades on his phone.
"I'm very frustrated, and they're aware of my frustration," he
said of TD Ameritrade.
A spokeswoman for TD Ameritrade acknowledged sporadic slowness
on the firm's website Tuesday morning, but said the issue had been
resolved.
"It was never an 'outage' across the board, and in every case,
there was always another platform for clients to use," she said.
"This redundancy is very important to us. It helps ensure that if
we do encounter slowness in one channel, there are still other
channels for clients to use.
"In this case," she added, "when we saw the slowness on the
website, we immediately started directing clients to other
channels, like our apps, the Thinkorswim platform, and our chatbot
through Facebook Messenger."
At Fidelity, a spokesman Tuesday said the "intermittent
technical difficulties with our website" had been resolved. He
declined to say when exactly the glitches popped up, calling them
sporadic.
Fidelity is authorized to waive commissions or offer free trades
to clients on a case-by-case basis, he said.
Still, the experience of a slowdown or outage can be vexing for
investors trying to check accounts or trade during a market
plunge.
"You would think that they would know why they have insufficient
scalability," said Mr. Kaplan about TD Ameritrade. "You would think
they would know what part of their system would need to be more
robust to handle" surges in trading volume.
While the outages Tuesday were resolved quickly, they follow
widespread outages that plagued trading during the closing hours of
trading Monday. Investors complained then of outages at Betterment
LLC, a pioneer in the automated investing world; digital adviser
Wealthfront Inc.; Charles Schwab Corp.; TD Ameritrade; Vanguard
Group and elsewhere.
A spokesman for Betterment said via email that he wasn't aware
of any system glitches at the firm Tuesday.
At Wealthfront, a spokeswoman said she wasn't aware of any
problems with its systems Tuesday and suggested any slowness Monday
wouldn't have had an impact.
"Wealthfront is not an active trading platform so clients can't
ever log in to place trades," she said. "Our clients are in
diversified portfolios and are long-term, passive investors.
Yesterday they would have been logging on to see their balance and
return for the day."
A website outage has no impact on a client's account activity,
she said. "In yesterday's case, all rebalancing and tax-loss
harvesting services ran as normal and were not impacted," she
said.
At Vanguard Group, some clients might have experienced "sporadic
difficulty" accessing their accounts Monday at Vanguard.com or by
phone, a spokeswoman said. A Schwab spokeswoman said one of its
trading applications had delayed logins for some clients for a few
minutes Monday. Traders were alerted and diverted to Schwab.com,
which hadn't experienced any issues, and the issue was resolved
within minutes, she said.
Write to Daisy Maxey at daisy.maxey@wsj.com
(END) Dow Jones Newswires
February 06, 2018 14:32 ET (19:32 GMT)
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