Broker says he has power of attorney to buy futures for 14 accounts

[FrankInLa]

As I said:

* Read what others write about the broker, cut the outliers out and take the rest as a fair representation

* Check how long the broker has been in business; lawsuits; settlements; violations; official complaints;...

* Check what people say about withdrawals, conflict resolutions, customer service...

It's not that hard but you gotta do your due diligence. IB is one of the best if not the best and safest broker among those who take on retail accounts.

I will tell you something from my personal experience. When I was trading Forex with an US based broker (who still exists and has thousands of employees) our orders were timestamped at the moment the order was executed (was before the internet era). On that timestamped order were all details about the executed order. So also the account on which this order should be booked.
One day a stockbroker got arrested for fraud. He placed orders for his clients but he cheated. If the transaction was profitable it was booked on the account of the stockbroker; if it ended with a loss it was booked on the client of the stockbroker. The stockbroker stole million $ from his clients. When I answered the us broker how this was possible with time stamped orders you refused all comments.
This US broker has still clients all over the world and probably nobody knows about these practices that happened and maybe still happen.

Can you give me a list of brokers who can be trusted and also absolute proof of that?
Everybody was for many years sure that email was save. Till we heard about the NSA.
Insider trading is forbidden too, but a few US politicians were caught selling all their stocks before the Covid-19 problem became public.
You are never sure about any broker.

The only way to see if they piggyback you is to have full details of all orders that were executed around the time you placed your order. Full details included identity of the owner of the account. But before you get that data it can already be manipulated.

In this thread was posted:The broker said he can do it as long as he doesn't front run the order but a lot of skilled traders scale up with multiple orders so technically he would be front running after the first order.

Maybe you can tell me how I can checked if the broker follows the rules? Because if I cannot check it this rules make no sense.

By law you cannot kill or steal. But everyday people get killed or robbed.

 

[narafa]

In this thread was posted:The broker said he can do it as long as he doesn't front run the order but a lot of skilled traders scale up with multiple orders so technically he would be front running after the first order.

If you are a Hedge Fund and you want to buy 100,000 shares of say AMZN stock and split this in chunks of 1,000 shares orders (Total of 100 orders), every separate order will have a unique ID. The broker still cannot front run, because he is obliged to execute the client order first. So it goes like this:

HF sends first 1,000 shares buy --> Broker executes them first --> Then Broker buys for his clients (Using his POA)
HF sends second 1,000 shares buy --> Broker executes them first --> Then Broker buys for his clients (Using his POA),

And so on.

Now you are referring that after a couple of buy order chunks, the broker now knows that you are buying, so he effectively knows what you are up to or your positional direction and this is what you are referring to that he can still do some sort of middle running while the Hedge Fund is scaling/slicing their order.

Now this is true and an old tactic which used to happen a lot by floor traders back in the days and Hedge Funds and Large Traders got note & implement various tactics to hide their intentions from their brokers or the floor traders.

First they use multiple brokers and spread the orders among them, not only this, but they might also buy, then sell, then buy, then sell and go short, then cover, then short again, before they finally cover & go long. These swings (Especially when randomized without a particular pattern) make it very very difficult for the brokers to identify which side are you really trying to take.

 

[virtusa]

If I have a trading account with a broker and the money is at Dorman.
Who can see my orders and trades? My broker? Dorman? Or both?

Does my broker place the orders directly at the CME or does it pass thru Dorman?