Disliked{quote} I think we all agree about it. But the question is should we close our eyes about their shady practices because they offer us the opportunity that you explained so well, by fear that the business would not be profitable enough for them without these practices ? Or should we be demanding by doing due diligence because this business would still be profitable for them if they are honest with their clients. Ok...maybe they would make just 200 M$ profits in a couple of years instead of +300...but it's still good money for them, right? And what...Ignored
We also aren't naïve enough to think you can complete due diligence in this industry that would satisfy all criteria of regulation, it just isn't going to happen, prop, futures, spot forex, CFDs, you name it.
In a sense some good may come out of this as there are far too many con men (and women) that have jumped on board with a 6 month window to rip people off, I think this is criminal and they should be caught and bagged up somewhere dark. However freezing MFF up who were paying, what does that achieve apart from opening the market up to more ponzi bucket shops? But I'll say this, if you are stupid enough to give these idiots your money then you don't deserve regulation/protection just go to a casino and complain to the gaming commission after you've lost your car or home... (not a $100 buck sign on fee..)
I watched the 5ers on youtube and was very surprised by their reaction in public when questioned about their business model, guess what? It's the same, only they think they are immune from CFTC....
If I was running a prop I'd be completely clear in saying, this is simulated and we are paying you for simulated performance from fees accrued from the losers. It only works out if we continue to accrue failure fees in greater numbers than paying out the simulated performance, up until that point we pay you. Long term view would be...?
IF prop firms really wanted pro traders the model wouldn't be how it was and not quite how it is now. If they are genuine they will change the proposal and they'll need to do it very fast, but my money is on the conmen and bucket shops pulling in that sucker a minute until they get shut down...