Unauthorize transaction from my portfolio!! Please help

Dileepa

Dileepa

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Dear forum members,

Following Image is a screen shot taken from my portfolio today(DirectFN TWS) Question

Unauthorize transaction from my portfolio!! Please help Lcem10

I did not executed these transaction and I have already send a mail to my broker regarding this.
But have to wait till monday for his reply, and I'm worried about a possible account hack. bounce

(I keep my user name, PW very safely and do not use common PCs for trading)
Can somebody please help/explain me where this is possible or not.

Also I did not understand the difference of average price and price term.
On the third transaction(2nd from top) average price is 24.90 while price is 34.40
Is this because of a limit placed on buy order.

Fresher

Fresher

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interesting to note that the trades were done within 5 minutes as well.

yes the avg price was a the price which the order was filled while price is which the order was placed.

the brokers i think use a different version of DFN (DT i think) and there is a column in the same screen to see what was used to place the order. if it is DT then it was placed by the broker and you must complain. if it mentions TWS then maybe there was some unauthorized access.
wait for the broker's reply and update.

Dileepa

Dileepa

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npp wrote:interesting to note that the trades were done within 5 minutes as well.

yes the avg price was a the price which the order was filled while price is which the order was placed.

the brokers i think use a different version of DFN (DT i think) and there is a column in the same screen to see what was used to place the order. if it is DT then it was placed by the broker and you must complain. if it mentions TWS then maybe there was some unauthorized access.
wait for the broker's reply and update.

I double checked, But could not find that column about DT/TWS.
Do I have to change any setting other than show all columns option in order to see that?
I'm still puzzling from the question of WHY?
Above translations do not make any sense to me. confused

Fresher

Fresher

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no that option can only be seen by your broker. so you have to wait for his reply

edit- besides, he should tell the truth as well. what are the odds that he wouldn't admit if it was his doing.
anyway this was not a mistake. should have been done intentionally

anubis

anubis

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I had a similar experience with my broker sometime back. The stock I bought was doing so well and all of a sudden I saw all of it has been sold off... when questioned why, he said it was a precaution because that share was moving so fast (i was pretty new to the stock market at that time). Thereafter I advised him to never sell off my shares without my consent, I suspect that some of these guys try to do some funny stock manipulations using the accounts of unaware retail traders like us.

Sure N Shot

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Dear Dileepa, I feel sorry about you, and it is good that you have reported this to our forum. Also, you must report this to CSE too, once you receive the feedback from broker firm. Today, these so called investment advisers have become "most expensive computer operators" in the world once you compare the broker fee that we give them at every transaction. Just entering a buy/sell order, but no reliable information or research based advise. Sometimes, I feel very irritable of their actions and attitude. Anyway, this may not be applicable for all advisers. My opinion is that you should bring your case to the CSE at your earliest.

udeni

udeni

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My husband also had the same problem with a brokering firm using DirectFN TWS. They have sold LDEV shares without his consent and when he complained to the so called investment advisor she has bought the same quantity at a higher price.

Dileepa

Dileepa

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udeni wrote:My husband also had the same problem with a brokering firm using DirectFN TWS. They have sold LDEV shares without his consent and when he complained to the so called investment advisor she has bought the same quantity at a higher price.

So said by the adviser, rite? There is no way for us to know for sure!
Also that does not justify the unauthorized transaction Neutral

udeni

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Dileepa wrote:
So said by the adviser, rite? There is no way for us to know for sure!
Also that does not justify the unauthorized transaction

Please let us know how your broker responds. If you find out that there has been an unauthorized sale the best course of action is what Sure N Shot said. Due to time constraints my husband could not pursue the matter.

widanage

widanage

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If you find any suspicious transaction you have to complaint to SEC. This may be unauthorized transaction (simply a purchase/sale without your connect while you are not on credit. They can sell at T+5).

As I understood there are two different platforms for individual trading and broker trading. The orders I place can not be cancelled by the broker as my broker explained to me. When your broker place an order on your call or email. You can not see it in you DFN screen. There is no facilitation at the front end to combine the orders by your and your broker. However, it will be possible at the back end.

Please wait for your brokers reply and speaks to him on this.

All this information are based on my experience with ASHA PHILIP (only for the DFN part not the unauthorized part)

Gaja

Gaja

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broker has no right to buy or sell your shares without your permission, unless you have not settle your balance

Gaja

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udeni wrote:My husband also had the same problem with a brokering firm using DirectFN TWS. They have sold LDEV shares without his consent and when he complained to the so called investment advisor she has bought the same quantity at a higher price.

As matter of relationship the broker could have bought it, but your husband is not liable to pay for the higher price and that has to be bear by the broker firm, did your husband pay the difference price?

Fresher

Fresher

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widanage wrote:If you find any suspicious transaction you have to complaint to SEC. This may be unauthorized transaction (simply a purchase/sale without your connect while you are not on credit. They can sell at T+5).

As I understood there are two different platforms for individual trading and broker trading. The orders I place can not be cancelled by the broker as my broker explained to me. When your broker place an order on your call or email. You can not see it in you DFN screen. There is no facilitation at the front end to combine the orders by your and your broker. However, it will be possible at the back end.

Please wait for your brokers reply and speaks to him on this.

All this information are based on my experience with ASHA PHILIP (only for the DFN part not the unauthorized part)

for Asia Securities, this can be seen by both parties via DFN

Dileepa

Dileepa

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Gaja wrote:broker has no right to buy or sell your shares without your permission, unless you have not settle your balance

There is a remaining balance in my portfolio which I haven`t settle yet.
But these transactions have nothing to do with the unsettled balance I think.
LCEM was not even in my portfolio.
When there is an unsettled balance, forced selling is acceptable but this Exclamation

Fresher

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this was more like forced buying

Dileepa

Dileepa

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npp wrote:no that option can only be seen by your broker. so you have to wait for his reply

edit- besides, he should tell the truth as well. what are the odds that he wouldn't admit if it was his doing.
anyway this was not a mistake. should have been done intentionally

Exactly, this is not something like an accidental enter press.
And the problem is, what was the intention. I can`t imagine any logical explanation to this

Dileepa

Dileepa

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udeni wrote:
Please let us know how your broker responds. If you find out that there has been an unauthorized sale the best course of action is what Sure N Shot said. Due to time constraints my husband could not pursue the matter.

Updating this post at my earliest (so that nobody will have a misunderstanding)
I talked with my broker, This is what had happen.
-----------------------------------------------------------------------------------------------
1. I had an unsettled balance in my portfolio for more than T+5 days.
2. In an attempt to prevent forced selling, my broker had to show continuous transaction.
3. He had made the first two transactions intentionally.(no loss for me there)
4. He had made a mistake during the placement of 3rd(second buy) order. (24.40--> 34.40)

5. Above transaction had been executed instantly.(@24.90) Neutral

6. He had place the final sell order, in order to reduce my outstanding balance.(even at a small loss)
-----------------------------------------------------------------------------------------------

udeni

udeni

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Gaja wrote:

As matter of relationship the broker could have bought it, but your husband is not liable to pay for the higher price and that has to be bear by the broker firm, did your husband pay the difference price?

Yes my husband paid the difference. The sale and purchase was done on the same day so it was like day trading.

Gaja

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udeni wrote:

Gaja wrote:

As matter of relationship the broker could have bought it, but your husband is not liable to pay for the higher price and that has to be bear by the broker firm, did your husband pay the difference price?

Yes my husband paid the difference. The sale and purchase was done on the same day so it was like day trading.

under normal circumstances your husband is NOT liable to pay the balance

duke

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Dileepa wrote:
1. I had an unsettled balance in my portfolio for more than T+5 days.
2. In an attempt to prevent forced selling, my broker had to show continuous transaction.
3. He had made the first two transactions intentionally.(no loss for me there)
4. He had made a mistake during the placement of 3rd(second buy) order. (24.40--> 34.40)
5. Above transaction had been executed instantly.(@24.90)
6. He had place the final sell order, in order to reduce my outstanding balance.(even at a small loss)

From the first buy and sell pair you lost 170.80.
From the second buy and sell pair, if it did executed you would have lost 35,208.88. I'm not sure if that's a small amount to loss. It's about 40% loss of your money.

What do you mean by "show continuous transaction"? Did you really have debt to settle? Shouldn't he notify you about that? Wouldn't it be cheaper for example just to sell 100 of LCEM or whatever you had to settle the debt? Brokers are really cunning creatures be careful. They will talk in such a manner that you will feel like you won even when you have lost 50% of the portfolio.Have you read that cartoon where a broker says something like 'your share went from $100 down to $1. then it went up to $2. So that's a 100% return'?

Dileepa

Dileepa

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duke wrote:

Dileepa wrote:
1. I had an unsettled balance in my portfolio for more than T+5 days.
2. In an attempt to prevent forced selling, my broker had to show continuous transaction.
3. He had made the first two transactions intentionally.(no loss for me there)
4. He had made a mistake during the placement of 3rd(second buy) order. (24.40--> 34.40)
5. Above transaction had been executed instantly.(@24.90)
6. He had place the final sell order, in order to reduce my outstanding balance.(even at a small loss)

From the first buy and sell pair you lost 170.80.
From the second buy and sell pair, if it did executed you would have lost 35,208.88. I'm not sure if that's a small amount to loss. It's about 40% loss of your money.

What do you mean by "show continuous transaction"? Did you really have debt to settle? Shouldn't he notify you about that? Wouldn't it be cheaper for example just to sell 100 of LCEM or whatever you had to settle the debt? Brokers are really cunning creatures be careful. They will talk in such a manner that you will feel like you won even when you have lost 50% of the portfolio.Have you read that cartoon where a broker says something like 'your share went from $100 down to $1. then it went up to $2. So that's a 100% return'?

Yes, as you pointed out that would have been disastrous for me Crying or Very sad

About continuous transaction (as I understood),
Before making a forced selling they check weather the portfolio is active or not.
If it is active they will delay forced selling.
Yes I had a debt to settle(my bad). Should have been more careful on my side.

duke

duke

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Dileepa wrote:

duke wrote:

Dileepa wrote:
1. I had an unsettled balance in my portfolio for more than T+5 days.
2. In an attempt to prevent forced selling, my broker had to show continuous transaction.
3. He had made the first two transactions intentionally.(no loss for me there)
4. He had made a mistake during the placement of 3rd(second buy) order. (24.40--> 34.40)
5. Above transaction had been executed instantly.(@24.90)
6. He had place the final sell order, in order to reduce my outstanding balance.(even at a small loss)

From the first buy and sell pair you lost 170.80.
From the second buy and sell pair, if it did executed you would have lost 35,208.88. I'm not sure if that's a small amount to loss. It's about 40% loss of your money.

What do you mean by "show continuous transaction"? Did you really have debt to settle? Shouldn't he notify you about that? Wouldn't it be cheaper for example just to sell 100 of LCEM or whatever you had to settle the debt? Brokers are really cunning creatures be careful. They will talk in such a manner that you will feel like you won even when you have lost 50% of the portfolio.Have you read that cartoon where a broker says something like 'your share went from $100 down to $1. then it went up to $2. So that's a 100% return'?

Yes, as you pointed out that would have been disastrous for me
About continuous transaction (as I understood),
Before making a forced selling they check weather the portfolio is active or not.
If it is active they will delay forced selling.
Yes I had a debt to settle(my bad). Should have been more careful on my side.

It's not your fault. You pay a broker charge and they didn't have the courtesy to call you or email you to remind the debt? I think the broker did not do it for your best interest. he should have notified you. if you didn't check this, he could have buy and sell again in another 5 days and again in another 5 days. he will get the commission you will lose your investment bit by bit. I still think you should complain this to SEC. I was wondering if these things are common happenings.

They can't delay T+5 whether you're active or not. I think what these foxes were doing is sell, create a new buy so that it has another 5 days to settle. What happens in another 5 days. They should have notified you. Report this to SEC with their explanation. Better yet tell the story to prathilaba.

Fresher

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Is the broker under the obligation to inform you in the case of a forced selling?
Sure it way not a friendly way of doing things but this i think was better than forced selling. judging by the amount, I think you would have had around 160k in debt. if it was much less the transactions cannot be justified. (he still has some to sell of which the order expired so you will be paying additional brokerage)

the erroneous order, since there were sellers at that price, it was filled at market price.

my broker does this all the time when I tell him to trade using my account. He is not doing a great job but I'm still analyzing his efforts. So far he booked profits but im on an overall loss. and full margin used up

schacha

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I also had same experience with capital trust some times back. That time I had no idea and broker convinced me that transaction was a mistake & he will correct the loss by day trading. I also just let him make me a more loser than gainer. Latter I changed my broker and made some profit.

gamaya

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Yes, now most of these advisors have become the most expensive computer operators in country.

And they have attitude. most of them, that is.

But if the complains keep on coming, then the CEOs will have to decide, ultimately.

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Unauthorize transaction from my portfolio!! Please help

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