Front running and price manipulation legal at IB?

R

ronblack

"...Customer authorizes IB to engage in proprietary trading, and to execute the proprietary trades of its affiliates, even though IB may simultaneously hold unexecuted Customer orders for the same products which could be executed at the same price."

"...The Forex Counterparty may also undertake proprietary trading activities, including hedging transactions related to the initiation or termination of foreign exchange transactions with Customer, that may adversely affect the market price or other factors underlying the foreign currency transaction entered into with Customer and consequently, the value of such transaction."

These are excerpts from IB's customer agreements. The customer effectively authorizes IB to front run orders and manipulate forex prices so that IB wins at the expense of the customer.

Is this legal in the US market?

Ron
 
Quote from ronblack:

"...Customer authorizes IB to engage in proprietary trading, and to execute the proprietary trades of its affiliates, even though IB may simultaneously hold unexecuted Customer orders for the same products which could be executed at the same price."

"...The Forex Counterparty may also undertake proprietary trading activities, including hedging transactions related to the initiation or termination of foreign exchange transactions with Customer, that may adversely affect the market price or other factors underlying the foreign currency transaction entered into with Customer and consequently, the value of such transaction."

These are excerpts from IB's customer agreements. The customer effectively authorizes IB to front run orders and manipulate forex prices so that IB wins at the expense of the customer.

Is this legal in the US market?

Ron
More...
ron crawl back into your hole. You can't even read english properly. Nowhere does it says that the customer authorizes IB to front run. Didn't get any attention lately ? ? ?
 
Quote from cvds16:

ron crawl back into your hole. You can't even read english properly. Nowhere does it says that the customer authorizes IB to front run. Didn't get any attention lately ? ? ?
More...

Are you having a bad day cvds16?

Ron
 
Is slandering a great broker legal?


Look, if you are customers of IB and you don't like them, simply GO TO ANOTHER BROKER. PLEASE!

If you are just a jealous rival - STFU.


Thank you for your cooperation. :)
 
Quote from Wayne Gibbous:

Is slandering a great broker legal?


Look, if you are customers of IB and you don't like them, simply GO TO ANOTHER BROKER. PLEASE!

If you are just a jealous rival - STFU.


Thank you for your cooperation. :)
More...

IB is a great broker, no question about it. Better than any other broker I've used before.

However, after reviewing their customer agreements I noticed the statements I quoted in my OP and I find then peculiar to say the least.

Maybe, you can explain what they mean and why one should not worry after reading them.

is IB involved in proprietary trading?

Ron
 
I'm going to play devils advocate here and ask if para 1 does allow for positions to be taken based on order flow.

I know they will FILL your order via timber hill, which is 'trading against' by some definitions. No problem at all with that.

Asking only if they could BUY ahead based on your BUY. I don't think they do that. I'd bet on it.

Clarity on this would be welcomed, if only to fend off the occasional bash.
 
Ron ... Would you say in what portion of the IB agreements you have taken these quotes from? Thanks.

... rj
 
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