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Their platform has had outages during periods of extreme market volatility, and they allow unsophisticated traders to take option risk that they may not readily
by totalZero 6y ago
Their platform has had outages during periods of extreme market volatility, and they allow unsophisticated traders to take option risk that they may not readily understand.
/r/wallstreetbets doesn't have any fiduciary responsibility to anyone. RH does.
- NovemberWhiskey 6y agoIs RH actually acting as an investment adviser in these transactions, or just a discount brokerage? If the latter, generally not a fiduciary, I think?
- totalZero 6y agoYou are correct. I should have used the term "suitability." What I was trying to communicate is that RH could be liable in a situation where it approves people for margin or L2 options accounts who have no business accessing those kinds of products. RH may benefit from increased order flow, but is not permitted to cultivate order flow that is clearly inappropriate for its clients.