People like that ( maybe applies to everyone starting out … ) will lose money to scams until they learn their lesson. There is always fear and greed and scammy people who take advantage of it, whether its investing or trading or something else.
If you agree with the solution, then from that logic, someone could promise great trading results by trading manually and it could cause loses - so we should ban trading itself.
But wait - maybe now people will start ‘investing’ using other people’s bad advice and they can get screwed bad, so we should ban direct investments in stocks.
But wait - now maybe they invest in mutual funds near top based on bad advice and then sell it all near bottom out of despair. We should ban all Equity investments to keep retailer safe. Bonds are safer, retailers should be restricted to bonds.
But wait companies can default and retail could have invested through bad advice. SO ban that.
But wait gov can default or give us negative real returns, we can have high/hyper inflation ( Zimbabwe… ) in rare cases. Perhaps future PM in India becomes dictator and money flows out. So ban it too – protect us.
As long as there is cash, we can always lose money - in business too due to scamsters. So lets ban money ban business. Ban everything. And now we cannot lose money. Go to barter system.
But wait maybe we can lose our valuables too due to bad advice. So lets just ban all possession itself. No more loses and retail will be saved.
But wait, Everyone dies, that is also a loss. Some people may kill themselves due to behavior of other people. So lets just ban all life. Finally we are free from scamsters …
More seriously,
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solution does not solve the problem of unregulated platforms.
The way it is structured, it means api for ordering stops for all and we go back in tech instead of moving forward.
Automation is still possible through workaround solutions ( desktop/web automation/ reverse engineer protocols etc ) and scamsters will have enough resources to manage this. I used to trade using ahk automation when we did not have apis and if apis get banned they only thing i can do is go back to something like that. That can work well, but is always going to be less reliable than apis so you will make the env worse for all of us. -
Execution range issue would still have remained without apis, removing market orders was a good solution but it can still happen if there is order imbalance as books can be illiquid.
What they need to do is have registration/oversight of these platforms.