Can anyone explain why T212 have limits on investments

This isn’t a moan (although I really want to moan) I would just like to understand and would appreciate a clear logical answer.

I own shares in company Y (I am avoiding putting info in the post hopefully to avoid T212 deleting the post on the basis that it contains account info). Company Y was listed on NASDAQ but the share price has been below $1 for a while so doesn’t comply with NASDAQ rules and so has moved to the otc market. That’s all fine. For a while T212 has had a maximum limit for the number of shares that anyone can buy in Y and it equates to about £170 (ridiculously small).

So I own close to the maximum in both Invest and ISA. T212 now say that shares in Y don’t comply with HMRC’s ISA rules so everyone that owns shares in their ISA is being forced to sell. Not happy but rules are rules so ok. I already own the shares in my ISA, T212 is “holding them” on my behalf and to avoid being forced to sell I want to buy additional shares in my Invest as I sell them in my ISA (the quantity I buy being the same as the quantity that I sell so no net difference to either me or T212). T212 say I can’t do that because I’ve already got the maximum permitted number of shares in my Invest (a staggering £170 worth).

So I queried this and asked whether I could buy additional share in Invest to balance what I sell in ISA. I’ve had three iterations of message trying to get a simple explanation why I can’t buy shares and the need for the limit. To me none of the answers I’ve received make sense. Here’s the gist of the three explanations:

First - “it comes down to the market conditions as somebody has to be willing to sell in order for you to buy. You will be able to place a buy order once the market conditions allow”. Doesn’t make sense people are selling and the market is executing buy orders.

Second - The maximum position limits are “set in order to ensure compliance with all requirements. The limits ensure that the respective instrument will not be suspended due to abnormal volume output from out clients”. This makes no sense. They are happy for me to sell100% of my ISA holding but prevent me buying in Invest while selling in ISA. I don’t understand why a £170 buy would cause anything to be suspended. The T212 limit is less than 1000 shares and the daily volume is about 4.7 million! Thus not clear that a 1000 share order is going to disrupt the whole market.

Third - the third reason makes the least sense and is comical. Remember we’re talking about buying less than 1000 shares for £170 (I’d like to buy considerably more but we’ll leave that for another day). So, drumroll, this is the third explanation: “It is a matter of whether the demand and supply can support a large order with this security. For example, if you would like to open a position worth 100K USD, that would be a considerable portion of the company’s worth. This could lead to a jump in prices and may be interpreted as market manipulation, causing regulatory risk and possible suspension of the company.”

What is the real reason for these tiny limits on the maximum number of shares we can have for some companies?

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Just to summarise: I want to buy £170 of shares in a company and T212 has a maximum limit that prevents me from placing the order because to place my £170 might disrupt the market, cause suspension and be interpreted as market manipulation.

Those hedge fund guys must struggle with their orders.

Their risk management team have decided, the end :joy:

Really dont get it myself either, I haven’t come across this on other brokers, and they arent present on CFD.

It’s a real shame, holding me back investing more on the platform. I really like T212 they are great for most things, but this one issue bugs me along with simple website/app standard features they should have added by now.

It wouldnt bother me so much if some of the limits wernt so low. Example, $500 limits on a stock, whats the point in letting us hold it at all?

Also the App, should give you pre-warning before so you can see there is a limit on the instrument before even purchasing it via T212.

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This particular stock is PXMD. They’ve also imposed a limit in CFD.

I have made a lot of money from PXMD previously and believe in it long term. The price was at about $0.7 before it was transferred to otc because of the NASDAQ rule compliance issue (NASDAQ require the share price to be above $1) and the price crashed to about $0.22 when it go forced to otc. T212 are going to force sell people’s shares in ISA accounts but today the company has announced that it has filed a NASDAQ appeal and they could just to a split to regain compliance and thus go back to the main market. It will be tragic if people’s shares are sold by T212 (without letting people buy in their invest accounts) only for the shares to go back to the main market and the price rockets.

At the moment T212 has imposed a limit of 910 shares with a share price of $0.22.

I would just like a logical explanation for the limits and it annoys me if I am given explanations that are clearly nonsense.

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You won’t get any other explanation from T212 beyond what you’ve been given already. It’s also the main limitation of their platform which makes no sense to me and has resulted in me using another platform to buy the quantities of stock I want.

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While T212 has been preventing buying and forcing people to sell the lending demand (listed in the Invest account - which is taken from IBKR so isn’t a T212 generated measure of shorting) has gone from high to none so it would seem like shorters have taken the opportunity to close their short while buying is limited and people are being forced to sell