TQQQ split is not handled correctly in brokerage account

Today TQQQ had 1:2 split, but the brokerage account does not update the shares hold and shows 50% drop in account value.

Please fix this problem.

The similar issue happened on other stocks too if you search split on this forum. I have the same issue and waited for half trading day. Alpaca please give response and fix the problem permanently.

I switched from another broker to Alpaca because of the API and the last one the system froze the whole trading day due to large volume. In turned out that my most profitable trading method only need 1 to 2 trades a day, API seems not necessary. I am thinking switching back to the previous broker as Alpaca continuously fail on handling basic trading issues.

I got the same issue here.

Same here. Just about had a heart attack this morning

I sent an email to the support and got a ticket number almost instantly at around 5:34 pm CST today. I think it’s automatic call center system. The issue is still not fixed yet. If you have the same issue, send an email to support@alpaca.markets. I couldn’t sell out shares as by my trading system today that already missed the profit. The worst thing is that the price can drop tomorrow which the shares should be sold out today to gain money will get further loss tomorrow. This is not the first time, similar issue happened on other stocks back to several months or longer ago. I will consult my attorney if the situation is getting worst tomorrow.

It’s really unacceptable that Alpaca made many enhancements like changed the color and layout of the front end but not fixing this basic issue. Since the price of TQQQ dropped a lot (closed at 101.44 on Jan 21, opened at 100.41 on Jan 22) but Alpaca failed to do the ex-distribution ProShare announced on Jan 6, 21 which caused potential loss to the customers, and the similar issue happened back to Sep 20 including TSLA split, I have submit the case to my attorney to request for compensation. If you are affected, you can also consult your attorney or discuss here.

Stock splits, like most other corporate actions often take one business day to be reflected in a user’s account. We have changes in the works to hopefully reduce this time, but currently that’s the case and is a result of how our clearing firm handles these actions.

For a bit more detail (if interested) on the topic of splits. They fall under the general category of ‘corporate actions’. While price and share adjustments seem to happen ‘automatically’ they actually are processed in much the same fashion as a dividend. Instead of a cash dividend being distributed to shareholders, the distribution is in shares. The company, or ETF in this case, declares they will distribute a ‘split’ and generally publish an official press release along with an SEC filing. The key information includes the ‘Payable date’ and the ‘ex-Distribution date’. Just like dividends, these indicate the date which the new shares will be distributed and the date, before which, if one trades they will get the distribution.

A time lag occurs because of all the parties involved. Currently, Alpaca uses ETC as a clearing firm. The arrangement is they hold all securities in ‘street name’ and are therefore the recipient of the distributions on the payable date (1/20 in this case). At the end of day 1/20, ETC does the backend bookwork to ‘virtually’ distribute these shares to the actual shareholders. Those records, or transactions, are then typically sent to Alpaca the following business day before markets open. Alpaca, then updates the actual accounts. The timing may sometimes get delayed a day if there are any irregularities.

But note, Alpaca is currently moving forward with some changes which will give us much more flexibility and potentially eliminate a day in processing. More to come on that.

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if i had known that i would have never used alpaca, when your talking about an api everything is expected to be intentions by default. splits should never take more then just a few minutes to update. if alpaca feels they need a

i think alpaca should close down and regroup, as that is a very good example of market manipulation…

SAY ON THE ACCOUNT DASHBOARD THERE ARE INVESTMENTS AFFECTED BY STOCK SPLITS LINKED TO MORE INFO…, I THINK I MIGHT MOVE ELSE WHERE NOW FROM the shear idiocracy of your statements…

TQQQ did 2:1 split on 1/21/2021 - when will it be reflected in Alpaca trading accounts? It’s already been several days - weird. Eliminated more than 250K from my account, because the stock split was not updated. Not good service.

My account has been updated for TQQQ split some days ago. It did take 1 business day.

Not sure why your account is different.

The additional shares resulting from the TQQQ split should have surfaced in all accounts on 1/21. @Joe_O1 @kris @ericpoon, has the TQQQ split been reflected in your account properly? If not, please send an email to support@alpaca.markets and they can resolve.

As mentioned, a stock split isn’t simply a unilateral adjustment which a broker (like Alpaca) makes. It’s a corporate action much like, if not identical to, a dividend. They are pushed out by the stock issuer (ProShares in this case) to all the holders as of the ‘record date’. Those shares are then added to individual accounts by the broker. These transactions take a finite time.

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what your saying scares me, to think i would need to check up on what my system is doing at the end of each day just to know if alpaca is seeing a split correctly, gives me the feeling that that idea is just crazy?

when you said

what is a list of most common issues making a stock give an undesired effect, how can we mitigate a loss in a split if alpaca only changes after the processing happened.

thank you.

Kris, back-office brokerage business is complicated and never happens fast. I constantly monitor “corporate actions” to avoid overnight surprises.

i dont think you do…

OK, to be honest stock splits is not what i check. I scrape zacks.com i get from there what i need.