From multiple sources I've heard brokerage arbitration is institutionally unfair, e.g., because three-person panels consist of a retired brokerage executive and a local businessperson, who would tend to favor firms. Please share your view, and if possible, your experience. Would it matter if the issues were unauthorized trades and failure to execute, due to technical deficiency? Remember that you pay for arbitrator unless you win, not the firm.
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Fairness of Arbitration
- Thread starter mbbd
- Start date
Which broker do you use & what's your issue?Quote from mbbd:
From multiple sources I've heard brokerage arbitration is institutionally unfair, e.g., because three-person panels consist of a retired brokerage executive and a local businessperson, who would tend to favor firms. Please share your view, and if possible, your experience. Would it matter if the issues were unauthorized trades and failure to execute, due to technical deficiency? Remember that you pay for arbitrator unless you win, not the firm.
Quote from mbbd:
From multiple sources I've heard brokerage arbitration is institutionally unfair, e.g., because three-person panels consist of a retired brokerage executive and a local businessperson, who would tend to favor firms. Please share your view, and if possible, your experience. Would it matter if the issues were unauthorized trades and failure to execute, due to technical deficiency? Remember that you pay for arbitrator unless you win, not the firm.
I've been through arbitrations. They used to tilt pro broker, but that's less true nowadays. Re your specific complaints, "unauthorized" sounds like a winner; "failure to execute" a loser. But of course you should get competent professional legal counsel rather than chatboard advice.
jayre, for now I don't want to be specific, but for the benefit of others I will offer this link where one may read about brokers with general accuracy to the extent I know:
http://www.broker-reviews.us
One should also search for "brokerage review", e.g., because there are other sites to check, and they reflect my experience with the brokers I've known. The sages of Elite Trader probably know all this stuff, but maybe they no longer post in this forum. Finally, this thread does not specifically relate to another I posted in this forum.
http://www.broker-reviews.us
One should also search for "brokerage review", e.g., because there are other sites to check, and they reflect my experience with the brokers I've known. The sages of Elite Trader probably know all this stuff, but maybe they no longer post in this forum. Finally, this thread does not specifically relate to another I posted in this forum.