FX Pulp - Zero Account

Just seen this. Thought people would be interested.

http://www.fxpulp.com/en/accounts/zero_account.aspx

From their site....

The new revolutionary idea we are putting forth is very simple, ZERO Accounts, yes ZERO:

ZERO Spread,
ZERO Margin Requirements,
ZERO Liquidation,
And ZERO Commissions.

The zero Margin sounds dangerous but if you use proper MM it should be fine. They limit the account to a max of $5k. Also positions must be closed at the end of the day. So no good for longer term swing/position traders. (Not sure what time their platform is on)

I dont know anything about this broker, how good they are etc, I have not used them.

Supa
C

so you're basically playing a online game of diablo,
and if you died in the game, you pay real $$. fair?
most people die in the game...

margin limits your max position, so you can open 1 trillion$ position with 10$ and blew up by 1pip move?

Just got done chatting with them.. (not to consider opening an account, but to expose them as a true bucketshop)

Energy trades are subject to a $7 "Exchange fee" per contract... The person didn't know what exchange my order would be routed to, and he tells me I can't trade calendar spreads. Maybe I should open an account, and then sue for misleading customers... but then again, they're located in Cyprus...

I provided the rep with a link to this thread. Lets see if they reply to my previous comment...

Directly from their website:


Minimum and maximum profits:
in the ZERO accounts, there is a minimum number of profit points you have to get before you close the deal on the 7 major currencies which is 35 Points, meaning that the client will not be able to close his deal before 35 pips of profit from his entry point, while the maximum number of profit points is 100 pips.

For other instruments the following table will apply:


Category Minimum Profits Maximum profit 7 major currencies 35 pips 100 pips Cross currencies 35 pips 100 pips Precious metals (Gold) 5 $ 10 $ Precious Metals (Silver) 10 cents 60 cents U.S. indices (Dow Jones) 35 points 100 points U.S. indices (NASDAQ) 10 Points 35 Points U.S. indices (S&P) 5 Points 15 Points Energies (Crude Oil) 35 cents 1 $ Energies (Natural Gas) 8 Cents 25 Cents

first question to be answered should be

will they give you your money back when you request payout?

35pips?

not allowed to close before making 35pips for every deal and using 10x or higher leverage, a beginner blows up in less than a week. ...

I guess, its also ZERO payout.

haha, pretty much with the fact that you cant close out positions unless you meet the rules.

thats a real short cut for beginner to bust their account,lol.

I honestly don't see the harm in this account and in fact i'll be opening a live one very shortly.

First of all the market moves 35 pips in minutes, and there are absolutely no candlesticks for any pair and any timeframe that end with a less than 35 pip difference between the open and close when at least one market is open.

I'll tell you the reason why they have this rule and i was them i would have the same policy...there are NO SPREADS for the majors...and no commissions or fees, that means when you buy the Euro against the dollar the moment you buy it your unrealized profit and loss is at 0 , a 10 pip jump is nothing for the forex market, people would be scalping 10 pips seconds after they bought the pair, it would be so much activity that the broker wouldnt be able to handle especially when they arent getting paid for it....and the maximum profit i'm sure is to attempt to make alittle money on thier end of the deal...because if you read the policy closely if you close a trade with more than 100 pip profit they only give you 100 pips of profit, i assume they keep the rest.


The no margin requirements makes is to you don't need to waste your money before buying, instead of having to put up 1000 you can use that 1000 to take on more loses and not have to have your stop loss so low.

the zero liquidity lets you ride the market out however long you wish, if you want to risk it and bring your account down to 0 you can...

the problem is not the account and its policies its the stupidity of the people who will use it...you cannot use EA's you cannot hedge, you cannot have stop loss, take profit, buy stops, sell stops, buy limits or sell limits....you have to actually really manually trade the market...that means emotion can get involved and negatively effect you but only if you do not know how to trade effectively that way....

Also note that you must basically be a day trader to have this account, there are no rollovers, they close out all deals at the end of the day...

overall i think this account, for the right kind of trader (day trader, effecient at manual trading, decent amount of money, no less than $1000 to start), also note that only the majors are zero spreads, crosses are interbank spreads.

I think when i start an account i'm going to start a thread and post my results. Hopefully i'll show people how much of an asset having an account with these capabilities can be....i mean seriously, its a forex traders wet dream lol its everything we've ever wanted...freedom and free

This is pretty innovative. I like the idea of it, but I share others' sentiment about the minimum profits to close a position...