With all the broker issues at the NSE, I now do all my orders on a limit price basis. However, I've noticed something uniquely Kenyan in the way the NSE brokers process such orders. For a limit price order, the limit price seems to become the buying or selling price. In almost every other stock market I’ve tried, the broker has always used the limit price as a guide for him to find me the best price.
My strong suspicion is that the NSE brokers take profit from limit price orders. If say I send in a limit selling price of Ksh26 for my 10,000 Equity shares and Equity goes to Ksh26.50, I suspect that the broker sells the shares at Ksh26.50, gives me my receipt at Ksh26 and pockets the difference less commission.

I have also wondered about this.

The below is an extract from wikipedia on the definition of front running...........

Front running is the illegal practice of a stock broker executing orders on a security for its own account while taking advantage of advance knowledge of pending orders from its customers. When orders previously submitted by its customers will predictably affect the price of the security, purchasing first for its own account gives the broker an unfair advantage, since it can expect to close out its position at a profit based on the new price level. Front running may involve either buying (where the broker buys for their account, before filling customer buy orders that drive up the price) or selling (where the broker sells for its own account, before filling customer sell orders that drive down the price).

Allegations of front running occasionally arise in stock and commodity exchanges, in scandals concerning floor brokers and exchange specialists.

@Wa_ithaka & Merchant; which brokers do you use? I think it is time you moved!

I use NIC. Been with them since the days they were known as Solid Investments.

I have never seen that trend. If I quote sell at a minimum of, say, 26, I do sometimes get a price of even 27.5

If I say buy at max 26, I will get even 25.

And as noted by cnn; subscribe to the CDSC service. You will get an SMS each time a transaction goes through your account...free of charge! The messages come promptly at 4.03pm

[quote=mukiha]@Wa_ithaka & Merchant; which brokers do you use? I think it is time you moved!

I use NIC. Been with them since the days they were known as Solid Investments.

I have never seen that trend. If I quote sell at a minimum of, say, 26, I do sometimes get a price of even 27.5

If I say buy at max 26, I will get even 25.

And as noted by cnn; subscribe to the CDSC service. You will get an SMS each time a transaction goes through your account...free of charge! The messages come promptly at 4.03pm[/quote]


I use Faida Investment Bank ....and the case is the same.....they make me smile at times coz they sell at a higher price ama buy at a lower price! =d> =d> =d> =d>

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