EU to ban execution only stockbrokers?

They can do what they want. Phoney Blair isn't worried, he'll be European Commissioner or whatever. That's why people want a Refo.
Perhaps spreadbetting will become the only alternative, after all who would seek advice from a bookie.


Looks like even more people will be trading with US stock brokers!
Why dont we do what the rest of Europe seems to do and ignore the ban? We seem to have to stick to the rules where other EU countries dont have enough administrators to follow them. I can imagine in France they will consider every trader to be a broker and there will be no paper work. Over here the system will grind to a halt.
I think it's worth pointing out that the wording in the directive is not clear, the ban on any execution only trading is one, pretty harsh, interpretation of what's written. While there's no denying the wording could do with a lot of clarification (and so the campaign is clearly a good thing), it should also be noted that those responsible for drafting the directive have told the association of Private Client Investment Managers and Stockbrokers stating that it is not their intention to outlaw execution only broking. Given all that I don't think the likelihood of this leading to the dire consequences many are worrying about is very high, though it's obviously worth working to get the wording improved.

There was a fuller discussion of this on the Fool a few weeks back:
This has all come about because there have been a large number of complaints from people who lost money using execution only brokers and then had the audacity to argue that they didnt know what they were getting themselves into. I also think that there will be no blanket ban but there may well be much more stringent requirements before being allowed to open an account with execution only brokers and to use their services.

I really hope that this doesnt happen and I think we should maybe start a campaign now to lobby for scrapping this ridiculous infringement of our Human Rights to be able to decide to place a trade without advice. What will happen next will be that when you go to Sainsbury to do you weekly shopping there will be advisers asking if you understand the consequences of buying a pint of milk and then taking a commission for doing so. The whole EU legislative framework is pathetic and if I were told that I am not allowed to trade then I would move to the US without a second thought.

This certainly seems like the financial equivalent of having to walk in front of a car with a red flag! They say that this is a free country, but the reality is that we are losing freedoms on a monthly basis.

Another activity that the EU seeks to ruin is that of gliding. There is a move afoot to prevent gliders flying above 8500 feet, heights currently exceeded regularly by club pilots, and a restriction that would prevent pilots getting the internationally recognised gold and diamond height gain awards in the UK. This is a sport in which Briatin has lead the world, but which bureaucrats seek to emasculate.

If we go into the streets, we are watched by cctv. Our movements can be traced by motorway cameras, use of our credit cards and mobile phones. There is no privacy any more. Big Brother is watching.

Never-mind. There is free digital TV and we can all curl up and use the latest technology to pass the hours watching repeats of "I love Lucy" in black and white. Keep the masses quiet and happy. TV is the "Soma" from Orwell's 1984.
Another activity that the EU seeks to ruin is that of gliding. There is a move afoot to prevent gliders flying above 8500 feet

Surely you are joking! On what grounds? I haven't flown gliders for several years now, but certainly enjoyed the view from 15000ft when I did!

Svengali - I've not seen this in print but I'm assured that it is true by a committee member of the gliding club that I go to. I can just see the French and Italians obeying this one. The airspace at 8500 ft in some of their best flying areas has rocks in it!
RogerM - maybe the French will interpret it as 8500ft AGL... Mountain flying is certainly something I miss doing.
Wow - what sort of licence do you need to fly a mountain.........
isn't this the sort of challenge Biggles would have relished?
"Sorry Biggles, we need someone to fly Mt Snowdon over to Italy, buzz the Frogs on the way, that sort of thing...". Wing Commander Raymond said apologetically, Biggles lighted a cigarette....
(He never 'lit' them, as I recall)
Apologies to continental viewers, Biggles wasn't a 'new man' and was quite limited in his approach to people of non-UK origin. (Frankly, he tended to shoot them).
I guess you'd have a sort of league in which to start. Start off flying the equivalent of a mole hill, then trainers like Box Hill, then onto the slightly racier Mt Snowden. Then when you have proved your mettle onto the real flying :) Killimajaro etc. I guess when you'd got up to Everest there wouldn't be much competition..................
Meanwhile, on the advfn free BB, 'S704' (and others) have copied some excellent replies from MEPs of various parties at

It is evident that they do not dismiss the threat lightly.

"All that is necessary for evil to triumph is for people of good will to do nothing" as one famous quotation goes. OK, we aren't talking of evil here but the same logic applies I think.
Right I am getting more annoyed at this the more I read so I have a few questions which I would appreciate replies from the good members here at T2W.

If execution only brokers are banned:

1) Does that mean that, for example, IB will be prevented from operating in the UK ?

2) Will we still be able to use direct access trading if we have accounts that are based in the US ? The reason I ask this is that the US does not permit SB so even if you are a US citizen you cannot spreadbet whilst resident in the US. So the same may apply to UK resident traders wanting to trade in the US.

On another point, the reason that TS6 is not for sale in the UK is that is infringes FSA regulations because it can advise you when to place a trade.

3) If all this comes to pass, how do I go about getting a US based address whilst I make plans to emigrate ?


If execution only brokers are banned:

1) Does that mean that, for example, IB will be prevented from operating in the UK ?

I think it's very unlikely that execution-only trading will be banned. If you read the directive it's clear that a national authority would have to take a very extreme interpretation of it to impose a ban.

What is much more likely is that we will see more of the sort of thing that you already have to do when opening accounts with US brokers, sign a lot of disclaimers and certify that you have read all the risk notices. Those would satisfy most interpretations of the directive, i.e. they would demonstrate that the broker had notified you of the risks inherent in the instruments you want to trade, and cover their back in case of any future action by you.

I agree that there is room for improvement in the wording of the directive, but there is a staggering amount of hot air and wasted angst going on about it. And the idea of moving to the States where a lot of the sorts of checks talked about are already in place, imposed by their Federal system, as some sort of suolution seems pretty ludicrous.
Hi Peter,

Well I hope you are right but the EU have imposed some very bizarre legislation. As far as I am concerned, if this were to become law and I am no longer able to trade without a lengthy telephone call and all sorts of checks by which time the opportunity has gone, then what alternative do I have. I make most of my living from trading and I would not be able to do that with this directive in its current form. You say it's ludicrous to talk about emigrating if it comes in, well I think you will find that I am quite a way down the queue of those leaving this and other european countries who also make their living from intra-day trading.


London is one of the three financial capitals of the world. There's a phenomenal amount of money and influence in the City of London, and I would very much doubt that the big financial wheeler dealers would play along if the Government even went as far as contemplating such restrictive practices, let alone carried them out. The Government needs the City more than it cares to admit. Makes sense, surely?