Regulatory action against Tradestation Securities

[feb2865]

Regulation 9B.14, in that TradeStation knowingly entered bids and offers into the e-cbot system other than in good faith for the purpose of executing bona fide transactions.

there's more information in here
BASIC Case Summary


Dear traders

This is just for information purposes only. Just to keep you heads up...just in case

In my experience, a violation doesn't necesary involves malice, or intend. But just in case, keeps your eyes open.

Regards

Raul

[Soultrader]

Thanks for the info Raul. How would it affect Tradestation users?

[feb2865]

I don't think it will affect users. It's just a warning. My friend who was the one that sent me this information, told me that she's really in the market for a new broker. According to her, Tradestation's execution has been poor lately. She's probably trying to link one to the other, but I don't see this is such a big deal. I am confused about the parameters NFA is using for "good faith" That's very obscure and "intentioned" from NFA side in my opinion.

I sincerely hope Tradestation doesn't get affected by the poor judgement of this agency. I persoanlly don't see NFA have such experience in regulate futures.

Raul

[Soultrader]

I'll keep an eye out on any further news. Its one thing I mention to traders migrating over to Tradestation.... their execution is not top notch. I like their software which is the only thing I use with Tradestation.

Im not familiar with how NFA judges and makes their decision making on. But Tradestation is a respectable firm and it would be surprising for me to see them in violation of any regulations.

[Gav]

Please correct me if I am wrong. The case is not new. It was reported in 2005 ? Or I have missed out something?

NFA ID Respondent Penalty/Event Event Date
0307871 TRADESTATION SECURITIES INC • LETTER REPRIMAND 10/07/2005

Anyway, I am cautious after knowing this.


NFA link

[torero]

agree, soul, their platform is excellent by far the best in the industry, but their brokerage and services are less than desired. On days where there are freezes and lockups, you visit the forum and tons and tons of not so satisfied traders waiting just to speak to a rep, 30min to 1 hr minimum. Not impressive at all.

I use their platform but I trade with MBTrading. Services are great online chat or phone. Tradestation does only phone.

This brings me to the problem with auto-trading with Tradestation. Most experienced system traders don't recommend leaving the dang thing at home while you're the beach sipping pina colada. Many sit and watch it, believe it or not, it's not so "auto". When s--t happens, gotta be there to pull the plug and call customer service, else... Murphy's law takes over.