Traditional brokers trading on behalf of client, is it legal?

I recently came across a traditional broker who trades on behalf of client using his own strategy. My question is whether this is legal? Secondly, incase the client’s account goes bust, who will be held responsible? The broker or is it the client solely responsible for losses?

Not at all legal, unless the broker has a PMS[portfolio management scheme] or some license like that.

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WOuld be grateful if I can have an answer from Nithin, thx

I think it is illegal to trade with out client’s prior approval and broker should maintain records of authorizing from client for every single trade in his account.

Even with the client’s express approval, it’s illegal. Also, do you really want to risk your broker blowing all your money? There’s no way to guarantee profits in the stock markets. The brokerage house however will always make money c=since they’re still charging you brokerage on all these trades.