Legal or Illegal: Obtaining Information from Someone Working at a Broker?

[Suba]

A few months ago, an insider at the Binance crypto exchange was arrested and sanctioned for alleged front-running activities. Generally, exchanges, whether crypto or stock exchanges, prohibit their employees from trading due to concerns that they could use unpublished information.

When I was in college, I interned at a stock brokerage. I casually asked the broker's employees, but they generally admitted they knew nothing about trading and had never traded. However, I currently have friends who work at stock brokerages. They can't trade because the stock market opens during their business hours, while the market is closed on Saturdays, Sundays, and other major holidays. However, most of them have many friends (including me) who are given capital to trade. Then, we act like robots, simply receiving commands (messages) via WhatsApp to buy or sell AA shares. I and others receive a 30% share of the net profit. So, do you think my stock trading activities and others are legal or illegal?

 

[eLdavis]

If one wants to be honest i would say illegal cause you guys are getting information from insiders, information others do not have access to which is against the rules those insiders abide by as well.

 

[kit_hung]

I am impressed by your experience—it shows how young people are struggling to learn and get involved in the stock markets. However, the issue of legality depends on the market regulatory rules and the transparency of such activities.

If you trade using inside information or on behalf of prohibited employees, there is a risk of violating regulatory laws. This can have legal and professional consequences for all parties involved.

It is important to learn and invest legally. Professional advice from a lawyer or financial market expert can help you know the limits of what is permissible.