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Could 10:1 be the new leverage in US Forex?

  • #381
  • Jan 26, 2010 7:29pm Jan 26, 2010 7:29pm
Quoting The Fool
Right, what they say there is that they are not regulated BECAUSE they are not counterparty to any client's trades. I have added the red text to help you see what is written plainly, rather than seeing what you want to see. They are not licensed, they are not regulated, as far as I know, yet they still operate as a spot broker in the USA.

"Are you regulated, and if so by whom and where?
We've actually gone to great legal lengths to make sure everything is forthright. The US regulations mandate that any firm that is counterparty to client trades...
right because they some sort of loophole, as they state they got the lawyers involved to find a way around. But registration is generally required unless you have some soft of loophole like they have clearly found. BTW this actually looks pretty cool.
  • #382
  • Jan 26, 2010 7:33pm Jan 26, 2010 7:33pm
Quoting endroute
right because they some sort of loophole, highlighted in red for everyone as well. But registration is generally required unless you have some soft of loophole like they have clearly found. BTW this actually looks pretty cool.
I'm not sure about the loophole thing. I think there are other active spot "brokers" who are not registered, but I am not sure. Yeah, I do like their concept - I am surprised that it has not been duplicated - maybe it will if spot forex doesn't get squashed by new anti-otc regulations.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #383
  • Jan 26, 2010 7:33pm Jan 26, 2010 7:33pm
Quoting wwwin
You are wrong again...I am not picking out anything, I originally posted the whole document, but you could not find page 8 of the pdf file, you were reading margin on what is labeled page 8...I had to post it because you could not find it that's all. It's in plain english.
Dude while this is fun and all forex brokers, unless they have found a loophole are required to register as FCMs. You are perfectly correct in that they could not untill the farm bill passage set regulation, but that is not the point of contention it is the requirement of registration.
  • #384
  • Jan 26, 2010 7:36pm Jan 26, 2010 7:36pm
Quoting The Fool
I'm not sure about the loophole thing. I think there are other active spot "brokers" who are not registered, but I am not sure. Yeah, I do like their concept - I am surprised that it has not been duplicated - maybe it will if spot forex doesn't get squashed by new anti-otc regulations.
If it wasn't for some loophole that they found why would everyone else have to register as an fcm, but since these guys are not counterparty to trades it seems as though they escape the registration requirement.
  • #385
  • Jan 26, 2010 7:38pm Jan 26, 2010 7:38pm
Quoting endroute
If it wasn't for some loophole that they found why would everyone else have to register as an fcm, but since these guys are not counterparty to trades it seems as though they escape the registration requirement.
Right, but isn't the whole idea of an ECN broker supposed to be no counterparty - no dealing desk? So, like MB, they charge a commission on top of a (supposedly low) spread....? So they don't need to be a counterparty...? And, if that is indeed the case, why is that a "loophole"...?
"If The Fool persists in his Folly he will become wise." - William Blake
  • #386
  • Jan 26, 2010 7:41pm Jan 26, 2010 7:41pm
I post it in plain english from NFA, I post an article from futures magazine from after the farm bill, the farm bill clearly states only "futures or options" and he still cannot understand it,,,cannot waste any more time than this. I am done, if you don't get it by now you never will.
  • #387
  • Jan 26, 2010 7:44pm Jan 26, 2010 7:44pm
Quoting The Fool
Right, but isn't the whole idea of an ECN broker supposed to be no counterparty - no dealing desk? So, like MB, they charge a commission on top of a (supposedly low) spread....? So they don't need to be a counterparty...? And, if that is indeed the case, why is that a "loophole"...?
I believe the whole no dealing desk thing at mb trading is a relatively new thing for them and that they did not start out that way. You are right about the ecn concept and no dealing desk, but I do not know from a regulatory standpoint how that fits into the equation.
  • #388
  • Jan 26, 2010 7:48pm Jan 26, 2010 7:48pm
Quoting wwwin
I post it in plain english from NFA, I post an article from futures magazine from after the farm bill, the farm bill clearly states only "futures or options" and he still cannot understand it,,,cannot waste any more time than this. I am done, if you done get it by now you never will.
the thing is you never posted anything that says fcm registration is not required, if you could backup your claims I would drop it and admit I was wrong but you can't because I am right.
  • #389
  • Jan 26, 2010 7:49pm Jan 26, 2010 7:49pm
Quoting endroute
the thing is you never posted anything that says fcm registration is not required, if you could backup your claims I would drop it and admit I was wrong but you can't because I am right.

No I'm right lala lalala lala I can't hear you I'm right endroute is a boogereater...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #390
  • Jan 26, 2010 7:54pm Jan 26, 2010 7:54pm
Quoting endroute
the thing is you never posted anything that says fcm registration is not required, if you could backup your claims I would drop it and admit I was wrong but you can't because I am right.
I already did, they cannot regulate spot is in plain english...can only "to shut down any unregulated that deals in futures or options"....as the fool, (not so fool) states, there are others doing business unregulated...why don't you read the article from futures magazine that I posted, is from October 2009
  • #391
  • Jan 26, 2010 8:02pm Jan 26, 2010 8:02pm
Quoting wwwin
I already did, they cannot regulate those is in plain english....as the fool, (not so fool) states, there are others doing business unregulated...why don't you read the article from futures magazine that I posted, is from October 2009
What that means is they can not regulate the transaction between the retail customer and broker, they still have to be registered as an fcm with cftc and the cftc has some limited regulatory jurisdiction like being able to shut them down etc.
  • #392
  • Jan 26, 2010 8:04pm Jan 26, 2010 8:04pm
Quoting endroute
What that means is they can not regulate the transaction between the retail customer and broker, they still have to be registered as an fcm with cftc and the cftc has some limited regulatory jurisdiction like being able to shut them down etc.
I am done, you are right LOL, and wish you a lot of luck...
can only "shut down any unregulated that deals in futures or options"....
  • #393
  • Jan 26, 2010 8:13pm Jan 26, 2010 8:13pm
Quoting wwwin
I am done, you are right LOL, and wish you a lot of luck...
can only "shut down any unregulated that deals in futures or options"....
This was a lot of fun, it certainly made a relatively slow Asian session a little more interesting. Trade well.
  • #394
  • Jan 26, 2010 8:16pm Jan 26, 2010 8:16pm
Quoting endroute
Trade well.
I'm right.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #395
  • Jan 27, 2010 12:22am Jan 27, 2010 12:22am
Quoting The Fool
Right, what they say there is that they are not regulated BECAUSE they are not counterparty to any client's
Have you tried the demo? They say 0 to .5 pip spread....if you have a profitable scalping EA that this could be good. Do you know anyone that has used them?
  • #396
  • Jan 27, 2010 12:47am Jan 27, 2010 12:47am
Quoting wwwin
Have you tried the demo? They say 0 to .5 pip spread....if you have a profitable scalping EA that this could be good. Do you know anyone that has used them?
Yes, FF member unBEARable is/was an early member. I have not seen him around much lately. I think I found out from him that they had only one liquidity provider - CitiBank - but that could be wrong or changed by now. I was mostly interested in what they had done & how they had done it, rather than being a "client". I do not doubt that the spreads are very low, but I didn't like the commission structure, either. I do some pretty high frequency scalping and I didn't think that I was going to save money with them.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #397
  • Jan 27, 2010 1:55am Jan 27, 2010 1:55am
Quoting The Fool
Yes, FF member unBEARable is/was an early member. I have not seen him around much lately. I think I found out from him that they had only one liquidity provider - CitiBank - but that could be wrong or changed by now. I was mostly interested in what they had done & how they had done it, rather than being a "client". I do not doubt that the spreads are very low, but I didn't like the commission structure, either. I do some pretty high frequency scalping and I didn't think that I was going to save money with them.
They don't charge commission at least not now, they have a straight monthly fee (varying tiers depending on volume traded). However, there are no spaces on any tier, there is a waiting list.
  • #398
  • Jan 27, 2010 2:08am Jan 27, 2010 2:08am
Quoting luckylady
They don't charge commission at least not now, they have a straight monthly fee (varying tiers depending on volume traded). However, there are no spaces on any tier, there is a waiting list.
Right, but since the monthly fee is variable & based on number of round-turns traded, its basically a commission structure.

I bet if you get on the list you might get in eventually. I used to get emails from them notifying of spaces opening up - but I have not heard from them in months - they might've taken me of their list, though....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #399
  • Jan 27, 2010 3:43am Jan 27, 2010 3:43am
Quoting endroute
taken word for word from the collective fx FAQ sections on their website

http://www.thecollectivefx.com/membe...adminpages/FAQ

Are you regulated, and if so by whom and where?
We've actually gone to great legal lengths to make sure everything is forthright. The US regulations mandate that any firm that is counterparty to client trades be registered.

This was done to protect clients, since when the broker is counterparty to the clients trades, if the client wins, the broker has to pay. They want to make sure the broker...
Hummmm....so you kids are starting to think outside the box and see that there are other options evolving out there huh !

Dig a little deeper and you may find that with a decent account you can bypass the whole system and trade side by side with the big boys
  • #400
  • Jan 27, 2010 3:45am Jan 27, 2010 3:45am
Quoting Platypus
Hummmm....so you kids are starting to think outside the box and see that there are other options evolving out there huh !

Dig a little deeper and you may find that with a decent account you can bypass the whole system and trade side by side with the big boys
Show us the way, Master Platypus!
"If The Fool persists in his Folly he will become wise." - William Blake
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