Wheel Strategy Broker Outages: The Continuity Plan Every Wheeler Needs
What's in this guide
1. Why broker outages matter 2. Recent notable broker outages 3. Types of broker outages 4. The wheeler continuity plan 5. Multi-broker as continuity strategy 6. Broker communication + phone-in trades 7. SIPC and outage-related losses 8. Next stepsEvery major US broker has had outages — Schwab (2020, 2023), Fidelity (2022), Robinhood (2020, 2021), Interactive Brokers (2020). During an outage, you can't place orders, close positions, or manage risk. If the outage coincides with market stress, positions may move meaningfully against you. This guide walks through the continuity plan every wheeler should have.
1. Why broker outages matter
- Can't close positions during volatility spikes
- Can't roll positions approaching expiration
- Can't exit before FOMC/CPI announcements
- Missed opportunities from market moves
- Emotional stress during forced sit-and-watch
- Multi-day outages compound losses
2. Recent notable broker outages
| Date | Broker | Duration | Impact |
|---|---|---|---|
| March 2020 | Robinhood | Multiple days | App down during COVID crash — massive user losses/complaints |
| March 2020 | Schwab | Hours | thinkorswim briefly down during volatility |
| Jan 2021 | Robinhood | Multiple days | GameStop volatility, trade restrictions |
| Aug 2022 | Fidelity | Hours | Login issues during rally |
| May 2023 | Schwab | Hours | Post-migration issues after TD Ameritrade integration |
| Various | Any broker | Occasional | Individual account issues, order routing failures |
This is not a hypothetical concern. Every major broker has had material outages, some during critical market moments.
3. Types of broker outages
Full platform outage
Broker's systems completely down. Can't login, can't call, no trades possible. Rare but most severe. Duration: hours to days.
Trading platform outage but website up
Can view account, but can't trade. Frustrating but manageable if temporary.
Order routing issues
Platform up but orders reject or fill at wrong prices. Sneakier and harder to detect. Check fill confirmations carefully.
Data feed outages
Prices delayed or stale. Positions appear wrong. Avoid trading during data outages — potential misfired orders.
Regulatory/business restrictions
Broker restricts trading in certain names (e.g., Robinhood GME 2021). Rare but very disruptive when it happens.
4. The wheeler continuity plan
- Know your broker's status page URL — Schwab status, Fidelity status, etc. Bookmark it.
- Know your broker's phone number for order desk — trades can often be placed by phone during platform outages
- Maintain a second broker — 20-30% of capital minimum for continuity
- Keep positions manageable — don't depend on same-day management for survival
- Have written continuity plan — steps to take when outage happens
- Follow broker on Twitter/X — outage updates often come through social first
5. Multi-broker as continuity strategy
The most robust continuity strategy: use 2-3 brokers with meaningful capital at each.
- If Schwab down, trade at Fidelity
- If both down, use secondary broker (Tastytrade, IBKR)
- Enables hedging cross-broker — buy protective puts elsewhere if primary is out
- Requires: multiple accounts, capital spread, position tracking discipline
See Multi-Broker Setup Guide for full framework. Continuity is a real reason to run 2+ brokers, especially for accounts $100k+.
6. Broker communication + phone-in trades
When platform is down, phone-in trades are often available:
- Schwab: 800-435-4000 (24-hour)
- Fidelity: 800-343-3548 (24-hour)
- Tastytrade: 888-247-1963
- IBKR: 877-442-2757
- Charges apply: phone trades cost $25-50 vs online free — but during outage, worth it
- Long wait times during outages — many others also calling
Save these numbers in phone contacts before you need them.
7. SIPC and outage-related losses
SIPC insurance covers broker failure ($500k per account type). It does NOT cover:
- Losses from outages (broker not failing, just down temporarily)
- Losses from broker's trading restrictions (Robinhood GME 2021)
- Missed opportunities from platform issues
- Order routing failures
Some brokers offer additional insurance beyond SIPC. Some offer compensation for material outages (case-by-case). But you can't rely on this — plan continuity yourself.
8. Next steps
- Bookmark broker status pages
- Save phone numbers in phone contacts
- Consider secondary broker if account $50k+
- Write personal continuity plan — one page, printed, saved
- Follow brokers on Twitter/X for outage notifications
- Don't rely on same-day management — position sizing should survive multi-day outages
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Explore the site → Free Starter KitFrequently asked questions
What should I do if my broker is down?
Six-step response: (1) check broker's status page to confirm outage, (2) check Twitter/X for updates from broker, (3) call broker's phone order desk if urgent trade needed, (4) if you have secondary broker, execute time-sensitive trades there, (5) document position state for later reconciliation, (6) wait for platform restoration — don't make emergency decisions.
Which brokers have had recent outages?
All major brokers periodically: Robinhood (March 2020, Jan 2021 GameStop), Schwab (March 2020, May 2023 post-TD migration), Fidelity (August 2022), thinkorswim (occasional). This is not hypothetical — every broker has material outage history. Plan for it happening rather than hoping it doesn't.
Should I use multiple brokers for continuity?
Yes if account $50k+. Multi-broker setup provides real continuity: if Schwab down, trade at Fidelity. If both down, use secondary. Also enables cross-broker hedging. Requires: multiple accounts, capital spread, position tracking discipline. Add complexity for continuity benefit — worthwhile above $50-100k.
What are the types of broker outages?
Five types: (1) full platform outage (can't login/trade at all — rare but severe), (2) trading platform outage but website up (can view but not trade), (3) order routing issues (orders reject or fill wrong prices — sneaky), (4) data feed outages (prices delayed/stale, avoid trading), (5) regulatory/business restrictions (Robinhood GME 2021).
Can I trade by phone during broker platform outages?
Usually yes. All major brokers offer phone-in order desks: Schwab 800-435-4000, Fidelity 800-343-3548, Tastytrade 888-247-1963, IBKR 877-442-2757. Charges $25-50 per trade vs free online — but during outage worth it. Long wait times during major outages. Save numbers in phone contacts before you need them.
Does SIPC cover losses from broker outages?
No. SIPC only covers broker failure ($500k per account type). Does NOT cover: losses from outages (broker not failing, just down), losses from trading restrictions (Robinhood GME), missed opportunities, order routing failures. Some brokers offer additional insurance or case-by-case compensation for material outages but you can't rely on this.
How do I know my broker is having an outage?
Four signals: (1) can't login to platform, (2) broker's official status page shows red, (3) Twitter/X shows broker acknowledgment or user reports flooding in, (4) DownDetector or similar third-party status shows spike. Follow your broker on Twitter/X for direct communication. Status pages often update slower than user reports on social.
What should my broker continuity plan look like?
One-page written plan covering: (1) status page URL, (2) phone numbers saved, (3) secondary broker if applicable, (4) list of positions and where held, (5) key expiration dates, (6) contact info for tax accountant/spouse, (7) written thought process for emergency decisions. Print and keep with important documents. Update quarterly.