Legality and responsibility of trade copying

I wanted to see if i could start a discussion about trade copying. Specifically the legality of it in many countries. In my opinion and probably the law of many developed nations i would have to say that providing a trade copying service or in fact any type of signal or trading advice web page or blog is in fact highly illegal and can be cindered fraud.

The reason is simple, this would come under financial advice in my opinion (And that of the laws im sure and in most developed nations to give any financial advice you must be registered and qualified to do so.

So what do you think? Would you be happy to using a trade copy service despite it being anonymous and unregistered from a person with no qualifications?

Its up to the person who is copying signals. If signal provider country has no objection or signal provider just analysis markets but not trading then no issue I think. But yes legally signal provider should have permit from authorized financial bodies o cater signals to the people. Now even if you have authorization , who else follow your signals or subscribe you unless you're profitable trader! Now followers expectation has been always huge, say 40% per month or 300% per month , so if you have to earn such a unrealistic expectations or if you feel you can, better to trade own money & compound it every month.

Internet business isn't easy but if you super-hit then income potential will become huge.

You are entitled to your opinion but all alert services, without exception, are provided for educational purposes only. This statement is on every alert or copying website I've ever looked at.

The test in most EU countries is also about control. If an alert service is trading directly on your account without prior notification of each trade then there may be a case to answer in some jurisdictions. However, some trade copying services only provide their service to accredited, sophisticated or HNW. The description varies based on jurisdiction - a UK example is here - and the trade copying service is provided under the national exemption rules of each jurisdiction.

Ironically, where I spend a lot of time, Malta, does require trade copying services to be licensed if the servers providing the service are hosted in Malta. Even with the disclaimer above but that is simply because the MFSA are very commercially minded.

Finally, if a case did ever reach the courts then these days most would look at the working relationship rather than the one laid out in the contract for copying trades, if they don’t look similar. Reality over words, will determine and on that basis your contention below may be proven.

But as most providers don't last long I doubt we'll see a court case any time soon.

Interesting Thread , very important to save the money of many traders here , on FF.

Each Country has its own financial regulations .
For example, in Germany there is an Authority called " BaFin " ( Bundesanstalt Fr Finanzdienstleistungsaufsich or Federal Financial Supervisory Authority ) .

BaFin says." Anyone wishing to conduct banking business, insurance business, investment business or e-money business or to provide financial services or payment services requires prior written authorisation from BaFin ."

Also says : " Unauthorised business is a criminal offence . At the latest after BaFin has ordered formal measures, it also informs the relevant public prosecutor's office, which, as prosecuting authority, can take action in its own right against the respective conductor of the business and their assistants. Whether or not the public prosecutor's office works parallel to BaFin, however, does not affect BaFin's duties and powers as the authority with responsibility for hazard prevention. If the public prosecutor's office intervenes, BaFin coordinates the further steps to be taken with the prosecutor."

BaFin continues : " In the actions it takes against unauthorised business, BaFin works together with the supervisory and prosecuting authorities of other countries. At the request of foreign authorities, it also applies its powers of investigation for their investigations concerning unauthorised business in other countries. For this purpose, it is sufficient if the facts justify the assumption that somebody who resides or maintains a presence here is involved in the initiation, conclusion or settlement of prohibited business. This may include banking business, financial services, investment business, payment services or e-money business conducted in the other country in contravention of an existing ban there."

So , the question is very clear : anyone (person or company ) offers financial services or investment business (as trade copying) must have a special permit.
Otherwise it's a criminal offense.

https://www.bafin.de/EN/Aufsicht/Une...9D578.1_cid381

Hi all . Today GB wrote :

" Hello traders I will start with the trade copier on the 16.01. or 17.01.2017 latest.
All traders have subscribed to trade copier please sent me by e-mail immediately with
- the number of your account you will copier (please control the right number)
- the information is your account a CentAccount or a Standartaccount "

In my opinion , 16 or January 17 Ghostbiker will commit a criminal offense . He can not operate about financial services or investment business without a written authorisation from BaFin (Federal Financial Supervisory Authority ). He must have a specific authorization of the Financial Authority of his country ( Germany ).

Furthermore, FF members should not trust to give to a stranger (without any authorization) their sensitive datas ( number and informations of own private account ).

Sorry fellow Traders , but you would give to a perfect stranger which is hidden under a black helmet , the private datas of your account , with your money ?!

I strongly hope that FF Moderator will monitor carefully these risky operation and will keep the entire situation under control.