Is there anyway a RIA could trade other people’s money using a dealer terminal ( but not taking approval for every trade )??
Companies like Squareoff bots trade other’s money and it’s fully automated.
So what legal structure is Squareoff following that they bypass that they don’t need approval for every trade? @nithin @ShubhS9
No, RIA can only advice and not trade on behalf of a customer. Can’t really comment about squareoff as I haven’t seen the platform. But there is SEBI regulation expected to come around algo platforms that could potentially be advising. They had a discussion paper on this last year and I had written about it here.
What if I get the approval of the strategy from the client beforehand ?
Then can I use a dealer terminal to execute the strategy ? @nithin
Regulatory grey, but possible. If the strategy was approved by the exchanges, a customer could subscribe to the strategy; once done, it can automatically place orders.
Ok , this sounds good.
Any suggestions on how I could proceed with this , how should I contact the exchange regarding this? @nithin