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Can brokers piggyback on their customers?

  #6 (permalink)

Chicago, Illinois
Trading Experience: Intermediate
Platform: Ninja
Favorite Futures: ES
Posts: 76 since Mar 2013
Thanks: 708 given, 52 received

mattz View Post
@Big Mike, I have found that those who do not trade, or paper trade are concerned with being copied. Sadly, they also have other concerns that are at times not relevant to trading.

Those who do trade, realize that brokers in day to day operations are involved in:
1) Sales - bringing customers on board
2) Monitor Risk - in case of unexpected moves
3) Servicing customers who encounter technical issues or have general questions

In case there is a bored broker that all he does is look for successful trades to imitate, he will experience a VERY SHORT career span.

This is a service industry, and regardless of skill, success, and risk capital, all we do is take care of the customer from all aspects: technology, fast response time, and other things that are relevant to that specific trader. We do not engage in trying to imitate or duplicate traders.

I hope this answers what brokers do, or should do.

Thank you for the opportunity to answer this.

Optimus Futures

There is a risk of loss in futures trading. past performance is not indicative of future results.

So in other words, it is possible for brokers to be able to do this.

If I owned a brokerage and knew that one of my customers was making 10000% returns on his money, I'd just have some software make the exact same trades as the super trader customer. with my own account. Why wouldn't a broker do this?
Anyway thanks for answering my question.

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