Option Approval Levels

My Current broker only allows me to trade covered calls, buy puts & calls and write covered puts. I have to tried to increase my option approval level so I can trade spreads but they have said I need more experience trading options. I am thinking about opening an account with another broker. If I exaggerate my option trading experience when opening the new account is there anyway they can check up or check with previous broker.

 

I think they just take your word.

 

I agree with blakpacman. It may be sort of like being an accredited investor: they ask you because they have to, but they are not obligated to check up on you. When I started trading, I received a lower level of privileges from the broker, but then immediately (the same day) went back to the My Account page, changed my experience level to a higher one, and immediately received a higher level of privileges.

 

Data Protections act, they can't share data *

* in the UK, no idea elsewhere.

I just sent my broker another experience form and they upped it aswell without an issue.

 

So this confirms they don't even share data with themselves

 

Thanks for the replies, has anyone ever had to show proof of there liquid assetts when opening a new account?

 

no