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If someone is 20, it's more likely that they have no idea what they're doing with options, and a brokerage has a regulatory requirement to ensure that options a
by totalZero 6y ago
If someone is 20, it's more likely that they have no idea what they're doing with options, and a brokerage has a regulatory requirement to ensure that options are suitable for the customer before approving an account for options trading. It's not a bright line; age is information that can be used to make a reasonable determination about whether the customer is cognizant of all the risks. At the very least, they should call and speak with young customers before approving.
- giantg2 6y agoThey usually just use a questionnaire online. Most brokers aren't making phone calls unless it's absolutely necessary. Not saying it's the best way, but if RH is getting sued, then any other broker could be too. They could start testing people, like with a version of the CFA Fundamentals test.