Become a Signal Provider

[Gordon Gekko]

collective2.com is a website which encourages traders to provide signals to others for a fee. It publishes a league table of who the best signal providers are.

My concern is that by providing trading signals could that not be construed as giving investment advice. For which I'm sure you need to pass various financial exams such as the Series 7, CFA or LIFA?

Also, could one be liable to lawsuits from bad trades? I recall reading some time in the past how someone sued their broker for giving trading advice that went pear-shaped. Not sure if they were successful.

Thoughts anyone? :?:

 

[sandpiper]

Well apart from the successfull class action brought by Eliot Spitzer against the group of 10 (that one was based on mis-leading clients in order to bring in investment banking business), most (if not all) of the other class actions brought by individual investors have failed.

As for the collective site. I suspect it falls under SEC/NFA jurisdiction.

As far as I know you only need to become a CTA (US) is you are managing other peoples money. There are countless US based website(s) run by non CTAs all issuing subscription buy/sell signals. Collective2 is just another one, with a slight twist.

 

[adrianallen99]

Also I have noticed some people have 2 systems, one for going long - one for going short.