Is this trading strategy illegal or against some brokers policy?

Every bank does this now. It's not just when a guy enters a bank holding a sack with a dollar sign on it. That's why KYC rules exist.

Lots of money inside the system are laundered to avoid paying taxes, facilitate bribery, avoid confiscation, circumvent capital controls, fund terrorism, etc.
 
yes banks have to as I mentioned.

newwurldmn said:
Every bank does this now. It's not just when a guy enters a bank holding a sack with a dollar sign on it. That's why KYC rules exist.

Lots of money inside the system are laundered to avoid paying taxes, facilitate bribery, avoid confiscation, circumvent capital controls, fund terrorism, etc.
More...
 
I'm aware of a group that did this recently to a broker that was offering 50% rebates on all losses. They opened a ton of different accounts and went long on half of them then short on the others. Cleaned up in a very short space of time and has left the broker in a whole heap of mess.

What you are doing is not illegal, as the broker is offering the service. It does, however, have a finite time that it will work for before they find out what you are doing and disable your account.

You have highlighted the risk in your last post - can you withdraw your money? I guess you'll only find out when you try!

The same happens with any strategy when you try and screw over the broker, such as latency arbitrage. It'll work for a while until they find you out. There are less of these opportunities around, although new retail brokers constantly pop up, so there's some potential fresh meat on the market to execute them against.

The question you have to ask yourself though: is this really developing yourself as a trader for long term success?
 
Thank you everyonw for your help & the information, i had another look at their policy and as it turns out they do not allow Hedging which is going ahort and long on the same market weather its from the same account or different, however it is not illegal to do this using 2 different brokers.
I have seen everyones answers and i must say some of you guys just say alot of BS to make yourself sound smart i had everything checked with a professional brokers who is a family friend and he was the one that explained everything to me, i have also checked it with the broker about all this and they have given me all the information, they are going to let me withdrawl the money i invested in minus the negative balance from the other account.

Thank you again

And the person that said somwthing about money laundry i just wanna tell you mate that the information you have is from 1700bc so u need to updatw your knolidge but that you for trying to be helpful (if you were trying to help & not trying to scare me).
 
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