FINRA Is Not Regulating Anything

APRIL 2014

FINRA calls itself the Financial Industry Regulatory Authority.  But according to Ron Taylor, an investor who claims he lost $200,000 through unauthorized trading at Thinkorswim, the acronym more appropriately stands for “Fraud Is Now Regulator-Assisted.”

Biggest financial scam in history.

Largest financial scam in history?

I think FINRA is the largest financial scam in history“, he said, “First, they are not part of the government; they are a membership organization, funded by the very brokers they are supposed to be regulating.  So guess whose side of a customer-broker dispute they will likely take?”  

“I am still in shock”, he added, “When I reported to FINRA that Thinkorswim executed trades in my accounts that directly lost more than $200,000 FINRA defended the broker! Even worse, FINRA’s defenses of the broker’s actions were factually incorrect.”

Taylor also said that once FINRA decides no wrongdoing took place, it becomes nearly impossible to have the case reviewed by FINRA, or the SEC or a Court, even if new evidence is discovered.  “The financial underworld operates under its own set of rules, with ‘crooked cops’ (FINRA) and ‘kangaroo courts’ (Arbitration) that our real judicial systems won’t touch, and so if you are a customer of a behemoth like TD Ameritrade, your chances of recovering any losses due to broker misconduct or fraud are virtually zero.”

smirking or smiling

Is the CEO of TD Ameritrade smirking because his firm is too big to regulate?

CheatedInvestor advises readers to close their accounts at Thinkorswim/
TD Ameritrade before it’s too late.  Their software may be slick but it’s unreliable (listen to a senior trader advising a customer not to rely on the software here).  Their commissions are among the highest.  And they appear to be “too big to regulate”



2 responses to “FINRA Is Not Regulating Anything

  1. I once had an issue with thinkorswim when the information provided on their plattform was misleading. In effect, I was relying on incorrect information to place trades. I lost $20,000, when I pointed out the errors to them they acknowledged the mistake but refused to cancel the transaction. They knew that the amount was not big enough to litigate over. They have a huge legal edge over retail clients as the cost of getting justice is too high. They know that and rely on that fact! I wish I could find people with similar issues for a class action.

  2. Q: Who has the best job in the world?
    A: Richard Ketchum, CEO of FINRA, who gets paid $5 million a year NOT to effectively regulate the financial industry.

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