Can anyone explain this broker response?

Retail brokers have an obligation to fill an order within 3 minutes just as an institutional broker does, if the SPY did not indeed trade at the "filled" price within 3 minutes, he has a very strong case to win in arbitration.

The broker will not allow it to go to arbitration over $500 and will change the print/adjust the price from their error account, quite simple. He should have been filled while on the phone as suggested. I strongly doubt, in today's day and age of paper trails, the broker took the print, it just sat there for 5 minutes before getting executed...simple.

Your elderly friend needs to learn to use his computer of make a new trusted friend that can help him execute online.

surdo
 
Where there is money there will be crooks.

We all have been bitten by many so called "LEGIT" business person. think of the times they have nabbed us and we never knew about it. Overcharges for insurance rates, car repairs, cell phone services, various fees for this and that.

Tell you the truth it is a good thing we do not know how much we get skinned each month. .. :eek:

I had a couple instances in the past where arbitration was an option but passed on them because the amounts both were just over a grand, i passed because the time to go fight etc would have just added to my loss. I changed both accounts after giving the boys involved some sound advice on how best to behave in the future. Did i mention Ira Epstein and Alaron trading outfits?
 
Quote from austinp:

<i>""Took 6 mins to build the basket, pass to trader, and get this in the market."</i>

That's like saying, "sun was late coming up today because we still rotate the moon by hand in these parts"</i>

Qs and SPY are the most ultra-liquid shares instruments that exist. The broker owes your friend a timely fill within seconds of the initial contact... while on the phone together. Why wasn't the order fill confirmed during their conversation?
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Exactly:D ;
but i would not auto assume a 6 minute fill is a crooked cheating liar.

Of course in this case he is is,& i probably would ask the broker if they want to give the money back [or as a commission credit].Or give me the money because the state authorities likely will demand it.

And with a phone market order,without asking for fill price ;
asking for trouble.

In TN the Insurance dept also regulates brokers;
no lawyer required.:cool: Limit orders also work well on SPY.:cool:
 
If he just utters the word ARBITRATION, he will see $500 back in his account, no lawyer needed.

I will get the old man's money back in one phone call!
 
"Took 6 mins to build the basket, pass to trader, and get this in the market."
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Amazing in this day and age that there are still old-school brokers that can charge $100+ a trade and feed this crap to wealthy retirees or whatever.

Having worked retail brokerage, I doubt this guy defrauded you over $500 on a SPY order (it's almost impossible unless this was some hack mom-and-pop brokerage), more likely just was lazy or distracted with something else.

Call him up and get a timestamp on the order, that way you know if he's culpable vs. the trading desk. 2-3 mins is a good guideline like Surdo mentioned; if SPY moved 60 seconds after making the call, you don't have much of a case; if it was 5 mins later, then any respectable broker should adjust the trade at least halfway.
 
Build a basket.... what, he wanted to buy all the stocks that represent the S&P? What a little asswipe.

Your friend should change brokers just for the principle of it, even if he gets his money back.
 
Quote from John Paterson:

A friend of mine who is an older guy in his late 70's still uses a full serivce broker to purchase fund shares mainly. The other day he decided to go long SPY and called his broker to place the order, business as usual that is.

To make a long story short, when my friend got his trade report back at the end of the day he noticed that it was executed almost 6 minutes after he placed the order. He called the broker to ask about the delay and he got an email back saying something like this:

"Took 6 mins to build the basket, pass to trader, and get this in the market."

I'm not familiar with ETF's. I trade futures mainly and forex through IB. All electronic and instant executions for most part.

Can anyone explain what the above statement by the broker means? Do they have to build a basket when they trade the ETF?

John


Edit: I forgot to add that the difference in price from the time my friend placed the order to the time it was filled was $500 against him.
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If I was stupid enough to use a full service broker and this happened to me I would make sure that guy was put out of business. The scumbag probably makes a shit load of money pulling this crap on people who don't know any better.
 
Quote from plan:

Build a basket.... what, he wanted to buy all the stocks that represent the S&P? What a little asswipe.

Your friend should change brokers just for the principle of it, even if he gets his money back.
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Actually the best play here is to catch him in his own lie. Since this is "full service" demand a list of all the components in the basket he was creating, the share amounts, and execution prices.
 
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