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Can brokers piggyback on their customers?


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Can brokers piggyback on their customers?

  #11 (permalink)
 
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nathanologist View Post
Every time I've talked with anybody from my broker from the Sales to Customer Support to Trade Desk they've had no idea what my returns are. They don't seem to have access to my account balances or anything. So... I guess if you're making a lot of trade desk calls instead of software executions there might be an intercept along the way... But I don't think the average personnel have that kind of access.

All brokers and support desks should have access to balances in real time!!!
Its done for risk monitoring purposes.
and cut out the "intercept" part...another conspiracy.

Matt
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  #12 (permalink)
 jdox 
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mattz View Post
and cut out the "intercept" part...another conspiracy.

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?

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  #13 (permalink)
 PeakGrowth 
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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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  #14 (permalink)
 jdox 
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PeakGrowth View Post


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

So you're telling me that there are people who have access to the best traders in the world and are able to imitate their trades and you don't think it's happening anywhere on the planet?

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  #15 (permalink)
 PeakGrowth 
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jdox View Post
So you're telling me that there are people who have access to the best traders in the world and are able to imitate their trades and you don't think it's happening anywhere on the planet?

Transactional businesses...

What you're asking is do people steal - then the answer is as long as something has value someone will probably try steal it. There are people with access to billions of other peoples money, do they steal it? Some like Madoff do, but most don't.

If your asking is it done systematically as part of a legitimate business plan then no it isn't.

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  #16 (permalink)
 
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 Big Mike 
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jdox View Post
So you're telling me that there are people who have access to the best traders in the world and are able to imitate their trades and you don't think it's happening anywhere on the planet?

What is the obsession with this?

Who cares if one unethical small time broker is doing this. I don't think that this fantasy problem exists at a firm like Interactive Brokers, where a lot of serious money is trading.

Only a small time unethical broker would risk his business over something like this. Besides, most brokers know that nearly every trader loses money. Just because one trader makes money the last six months doesn't mean they will make money the next six months.

Mike

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  #17 (permalink)
 jdox 
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PeakGrowth View Post

If your asking is it done systematically as part of a legitimate business plan then no it isn't.

No, I never said anything about it being part of a business plan. All I asked is if it was possible or if there was something in place to keep it from happening.

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  #18 (permalink)
 jdox 
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Big Mike View Post
What is the obsession with this?


Mike

As I stated in my original post, I was curious if it was possible or if there was something in place to prevent this kind of thing from happening. All the brokers wanted to turn it into, "oh no that's not what we do, no broker would ever think of doing that". They act like I'm crazy for having the thought even crossing my mind.

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  #19 (permalink)
 
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 Big Mike 
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jdox View Post
As I stated in my original post, I was curious if it was possible or if there was something in place to prevent this kind of thing from happening. All the brokers wanted to turn it into, "oh no that's not what we do, no broker would ever think of doing that". They act like I'm crazy for having the thought even crossing my mind.

We act like your obsessed because after you were given answers from brokers, you continue to act like an obsessed person.

Mike

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  #20 (permalink)
 jdox 
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Big Mike View Post
We act like your obsessed because after you were given answers from brokers, you continue to act like an obsessed person.

Mike

Rather than giving an answer, instead they acted like it was absurd to think such a thing. That's why I responded to the posts.

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