Shoud broker compensate the loss?

Discussion in 'Retail Brokers' started by FutureMann, Dec 24, 2012.

  1. Because broker's server was down for several hours, you couldn't close you position. should the broker compensate the loss because of this?
     
  2. hafez50

    hafez50

    The answers no. Go read what you signed when you opened the account. Broker has no liability if there connection goes down.
     
  3. No. You should have called on the phone to close.
     
  4. I called on the phone and no one picked the phone by closing time.
     
  5. Any use of online trading capabilities requires that you accept the possibility of the online not working for whatever reason and absolving the broker of any responsibility/liability.

    If nobody picked up the phone, maybe consider different broker.
     
  6. Bob111

    Bob111

    it's not going to hurt to ask them about it,but in 99.9% cases-no. it's in their agreement between you and broker. which in short typically translates into-whatever you do-it will be always your fault.
     
  7. NoBias

    NoBias

    No,

    Online trading has inherent risks. It is the trader's responsibility to be prepared for the unexpected and have backup plans in place. Any number of things can go wrong loss of connectivity, equipment failure, server outage, etc...

    One of the primary reasons for having multiple brokers. If you lose access to your primary broker for ANY reason, you can take an offsetting position with a secondary broker. No excuse for not being prepared.
     
  8. It's in the agreement you signed when you opened the account. Inherent risks and limitations of electronic-dealing. You'd have to take it to arbitration and you would lose. Write it off.
     
  9. If its IB, forget about it
     
  10. vikana

    vikana Moderator

    many many years ago I had a similar issue where Cybertrader had a server error. I kept all logs and argued for months, and eventually they paid the majority of the loss.
     
    #10     Dec 24, 2012