What actions do brokers can take if clients trading account has negative balance and clients default on money ?
Broker can take legal action, to start with can send a legal notice to make good for money.
What if the client is bankrupt?
Don’t you think it’s difficult to recover in today’s online brokerage industry . Secondly could brokerages held AP liable for defaults of his clients ?
It maybe difficult but we can try.
AP is not liable for client default.
Nothing can be done in this case.