Has anyone been flagged at one brokerage as professional for violating the 390 rule and been able to open up a new account at a different brokerage with retail status or did the professional "w" status follow you?
The details (TLDR...the opening sentence is the real question).
I violated the rule without knowing it was a thing (flagged on April 2) and my strategy absolutely does not work with the awful professional fills I am getting at Schwab now. I am not looking to close or transfer my Schwab account as I've got a ton of long term hold/dividend stuff there.
I was contemplating just opening a new account somewhere else for at least the next few months until the professional flag comes off at Schwab (presumably at the beginning of Q3) so I can use my strategy to trade (being sure to stay well under 390...probably around the 300-340 range to be safe). I would open it with enough cash to satisfy the PDT requirements.
Has anyone been successful in doing this? If so, with what brokerage? If not, with what brokerage?
I thought the designation follows the beneficial owner (ss number presumably), but I have read enough on Reddit of people who at least imply it can be done, that now I am wondering if this is the case.
Further thinking, could there be any penalty for doing this? I definitely do not plan to exceed retail trading limits and I would not be trying to trade on both accounts so as to circumvent the rule. I would only do standard stock trading and sell an occasional covered call on Schwab (a few trades a day at most). The technique I use that racks up a ton of orders would only be used at the new brokerage and only with retail trading limits (under the 390 average).
Your knowledge and thoughts are greatly appreciated!