Retail brokers have an obligation to fill an order within 3 minutes just as an institutional broker does, if the SPY did not indeed trade at the "filled" price within 3 minutes, he has a very strong case to win in arbitration. The broker will not allow it to go to arbitration over $500 and will change the print/adjust the price from their error account, quite simple. He should have been filled while on the phone as suggested. I strongly doubt, in today's day and age of paper trails, the broker took the print, it just sat there for 5 minutes before getting executed...simple. Your elderly friend needs to learn to use his computer of make a new trusted friend that can help him execute online. surdo
Where there is money there will be crooks. We all have been bitten by many so called "LEGIT" business person. think of the times they have nabbed us and we never knew about it. Overcharges for insurance rates, car repairs, cell phone services, various fees for this and that. Tell you the truth it is a good thing we do not know how much we get skinned each month. .. :eek: I had a couple instances in the past where arbitration was an option but passed on them because the amounts both were just over a grand, i passed because the time to go fight etc would have just added to my loss. I changed both accounts after giving the boys involved some sound advice on how best to behave in the future. Did i mention Ira Epstein and Alaron trading outfits?
================== Exactly ; but i would not auto assume a 6 minute fill is a crooked cheating liar. Of course in this case he is is,& i probably would ask the broker if they want to give the money back [or as a commission credit].Or give me the money because the state authorities likely will demand it. And with a phone market order,without asking for fill price ; asking for trouble. In TN the Insurance dept also regulates brokers; no lawyer required. Limit orders also work well on SPY.
If he just utters the word ARBITRATION, he will see $500 back in his account, no lawyer needed. I will get the old man's money back in one phone call!
Amazing in this day and age that there are still old-school brokers that can charge $100+ a trade and feed this crap to wealthy retirees or whatever. Having worked retail brokerage, I doubt this guy defrauded you over $500 on a SPY order (it's almost impossible unless this was some hack mom-and-pop brokerage), more likely just was lazy or distracted with something else. Call him up and get a timestamp on the order, that way you know if he's culpable vs. the trading desk. 2-3 mins is a good guideline like Surdo mentioned; if SPY moved 60 seconds after making the call, you don't have much of a case; if it was 5 mins later, then any respectable broker should adjust the trade at least halfway.
Build a basket.... what, he wanted to buy all the stocks that represent the S&P? What a little asswipe. Your friend should change brokers just for the principle of it, even if he gets his money back.
Is that like a "Build a Bear workshop? Have your friend contact these nice folks if he does not get $500 back in the account by Tuesday. http://www.finra.org/ArbitrationMediation/FINRADisputeResolution/WhatisDisputeResolution/index.htm
If I was stupid enough to use a full service broker and this happened to me I would make sure that guy was put out of business. The scumbag probably makes a shit load of money pulling this crap on people who don't know any better.
Actually the best play here is to catch him in his own lie. Since this is "full service" demand a list of all the components in the basket he was creating, the share amounts, and execution prices.
there is no mention of order size,on a 10 lot of spus,$500 is only one point,that move takes only a second