https://www.tradingschools.org/sure-trader-now-we-know-the-truth/ I think he is on twitter now trying to victimize even more suckers
I never understood why someone would put money in a firm not regulated by one of the major global regulators.
I avoided opening an account with Suretrader for years thinking that the lack of insurance made it not worth it, but I never suspected it being a bucket shop. Gentile is a fucking douche
Seems most it stems from PDT rule. These firms all promise no PDT and these 500$ accounts buy in hoping to make it rich. Never happens. Complete waste of time to trade so under capitalized.
Pure genius...given 90+% small traders lose money and blow up their accounts its actually genius to pretend the trades are executed on exchanges but in fact simulated. The firm should never go belly up and instead pays out the occasional wins from the much larger losses that are pocketed by the firm by reducing the account balance of the losing client by exactly the amount of generated loss plus commission. Does not sound like a ponzi but much more a simple story of dishonesty and lies to clients. And another bucket shop bites the dust. Not that there won't be 10 new ones opened for each dead one.
this is what fx firms used to do also with options. they wouldnt go to an exchange but the accounts would mark to mkt based on actual prices. if the clients lost the fx firm would keep the money of the expired options. if they won the brokers would immediately get the clients to reinvest now there was no extra money so they needed them to lose again. but guess what most brokers would them go into those clients for even more money. telling them now is the time. double up. triple up..and they all expired worthless.
I dont really believe this story. Sure, SureTrader looked suspicious being offshore, and I wouldn’t send them my money. But many people used them for years and were able to trade and transfer money in and out. While the SEC also investigated them many times and never found outright fraud. And many of the SEC rules still apply to international firms offering investments to Americans (that’s why we’re not permitted to trade international options), so the SEC would’ve found many wrongdoings if they didn’t even send your orders to exchanges. And the SEC was very interested in them and did try to find reasons to disallow them from doing business with Americans, or shut them down. Anyway, here is another story on the closing of SureTrader that seems less sensational and more in line with what I’d believe: https://www.warriortrading.com/suretrader-is-closing-down/ (Btw, how many people here on ET complained that SureTrader stole their money and wouldn’t allow them to withdraw? This forum often gets stray visitors who complain about whatever broker they’ve dealt with.)
Does seem overdone. I don’t know much about the backend but you would think it would be easy for SEC to see these guys for own any shares. Has to be some sort of reporting of stocks owned under a brokerage.