Do you think this happens ?

[Ripley]

Of course.. brokers frontrun their few successful clients. It might be illegal, but they just still do. It tends to be more prevalent at smaller firms, unlike IB.

There are funeral home operators who steal tissues and bones etc and replace them with plastic pipes. It is illegal and a heartless thing to do, but people still do it because its profitable.

 

[volente_00]

Quote from Truff:

I think what VOLENTE is trying to say is that some brokers might use their profitable clients signals and pass them off as their own managed program. I don't believe he was refering to front running. I believe it does go on alot and it is FRAUD.

This is what I am talking about. Take me for example, I never enter limit orders and let them sit, so they can not front run me if they wanted, but they could enter as soon as they see me get filled, and exit as soon as they see me get filled In a way this bothers me because I believe it does happen quite often.

 

[Buy1Sell2]

Quote from volente_00:

This is what I am talking about. Take me for example, I never enter limit orders and let them sit, so they can not front run me if they wanted, but they could enter as soon as they see me get filled, and exit as soon as they see me get filled In a way this bothers me because I believe it does happen quite often.

Do you realize that there will be people posting soon who will make negative comments about this post?

 

[volente_00]

Quote from DynamicReplic8r:

Not only do they do it but they sell the data. It's called "Commitment of Traders." I get reports everyday showing the total long and short positions of the aggregate clientele of various brokerage houses. Also, I get commentary on "special flows"

How does one go about getting these reports ?

Are these reports from the previous day or generated intraday and put out the same day ?

 

[golablue]

I never enter limit orders on the book and let them sit, as I do believe that brokers do watch profitable clients and will trade off of their signals. On top of that, I believe that if I show "my hand," the potential for exploitation increases considerably.

 

[volente_00]

Quote from Buy1Sell2:

Do you realize that there will be people posting soon who will make negative comments about this post?

like my broker ?

 

[Buy1Sell2]

Quote from volente_00:

like my broker ?

no I'm thinking of ET posters.

 

[volente_00]

Quote from ozzy:

You guys are paranoid. If this were the case you could always put limit orders and then remove them?

I can understand gathering intelligence on some large players but you guys are merely zits on a fat ladies ass.

Not paranoid, and limit orders help nothing if they get their signals from your fills. You can not tell me that risk control programs at brokers that offer $500 margins don't know exactly when you buy as soon as you are in the trade.

 

[Hamlet]

It would make sense to get to making millions first before giving any thought to this issue.

 

[ozzy]

That's fine.

Let them join you in the trade. Everything should be fine as long as they don't enter before you.

Can you say conspiracy theorists? This is the male version of female gossip.

Quote from volente_00:

Not paranoid, and limit orders help nothing if they get their signals from your fills. You can not tell me that risk control programs at brokers that offer $500 margins don't know exactly when you buy as soon as you are in the trade.