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Can brokers piggyback on their customers?

  #13 (permalink)

Sydney, Australia
Trading Experience: Intermediate
Platform: Sierra Chart, IRESS
Broker/Data: IB, IQFeed
Favorite Futures: ES, SPI, ASX stocks, options
Posts: 399 since Jun 2015
Thanks: 169 given, 460 received

I'm a broker.

The answer to your question is simple - it's to do with risk and business structure. A broker is a transactional business that doesn't have an appetite for risk, they make money through comms regardless if you make or lose money.

Hence why they are called "broker" not "asset managers".

They may have an asset management or prop side to the business, but they won't copy trades, no need to go into detail as they why they won't - you should already know.

jdox View Post
Just because you're not doing it yourself doesn't mean it isn't being done. If there's nothing in place to prevent it from happening, I guarantee it's happening somewhere and probably more places than not. Why wouldn't they do it?

I can guarantee you that just because you don't understand it doesn't make it true.

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