One difference is that the securities industry has traditionally operated on different rules. Federal and state laws on ''suitability'' require brokers to tailor securities recommendations to the individual customer's tolerance for risk. Regrettably, I have to side with those who argue that suitability rules aren't really applicable to people like day-traders or investors who use discount brokers because these people make their own investment decisions without relying on professionals' recommendations. We let people ride motorcycles, climb mountains, drink alcohol, smoke tobacco and eat cheeseburgers. I don't mean to promote day trading.
Most day traders are foolish.
But they are grown-ups. Some day-trading firms step over the line by arranging loans to customers, or between customers. That encourages excessive gambling, and undermines the industry's claim that it doesn't promote self-destructive behavior. But as long as we're on our high horse, maybe we should apply the same standards to the gambling industry. After all, you can use a credit card to borrow cash for a one-armed bandit.