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I have to say I thought Odd Traders comments were entirely justified. Risktaker implied if you were a serious trader then you should be using FXCM. I would think any serious trader would think the opposite.

Agreed. If someone has been deemed to be managing 'investments' without the correct FSA approval then it is a criminal offence. Making yourself an employee of the person whose funds it is, is a loophole that works if you are only managing a few people's funds.

Yes, because the agreement would have broken the law and been invalid. However if he is only trading it for 1 person then it is a grey area and as MM said he could become an employee. He could not have this arrangement though if he was trading 100 people's money even if the total amount...

If you are only managing one persons money then you will be fine - as long as it isn't a little old lady who doesn't understand the markets and it is her entire life savings! I would use one of the brokers who use Currenex and the max brokerage you should pay is $20 per million. I would not...

Sorry to be a bore but are you registered with the FSA ? If not then if it goes wrong then you could be personally liable for all losses, or at an extreme face jail.

One final question. You have (at last) admitted if a client has an exposure you roll it over tom/next. This is of course the prudent and sensible approach any bank or prime broker would take. If client A has an exposure of say +$100k in the cable and client B +$1m do you do 2 tom next...

So you do cover it, as I would expect you to. And as such you are not just acting as an ECN but also as a prime broker. And so like all other prime brokers if a client wants to debit his dollar account and credit his sterling then you can cover this exposure in the spot market and not...

So if a client has sold £5m and bought dollars it is hedged via your platform with say UBS who were paying 1.9700 for £5m. However at the end of the day this client has not bought his sterling back so he has an interest rate exposure. You have said you dont cover this exposure?

You have not answered a very simple fundamental question. How do you hedge your different customer's exposure at the end of the day?

What would you like clarifying? Are you saying a 5 cent spread is reasonable? Are you saying you have no mismatch on your book at the end of every day? Are you saying you have no tom/next, spot/next and forwrd lines with banks and thus could easily debit an account in dollars and...

My point entirely. They allow customers to have an exposure and then have swap lines with a bank(s) to ensure they do not have large credit or debit balances in their nostro accounts overnight. They then charge a large differential to their clients for this. And if they have this...

So if a customer has an exposure how do you cover that at the end of the day? Or are you saying that at the end of every day there is no exposure as it nets off?

A bank ? - you mean your bank, as you instruct them and choose to hold your accounts with them. Who you allow to take a 5 cent margin - for whatever reason....... Please explain why you cant debit an account in dollars and credit it in sterling at the current spot rate. Why the need to speak...

I requested some funds backs from MBT once upon a time. Despite being a foreign exchange company the conversion rate when they sent the dollars (in the form of sterling) back to me was somthing like five cents away from the market. They thought this was reasonable and blamed their bank!

I was only messing around, don't become 'the all too serious viper'! My semi serious point though was that you dont have to be an employee or have clients to be a 'pro'. I like the fact that on ET it is not full of egotistical twats making out they are making millions every year. Some...

Are there traders in the States then?! Or are these trade shows designed to persuade people that they can buy the holy trail of trading sytems for a few thousand bucks.

I find this definition of a 'pro' very odd....

As I understand it as well on some of the currenex applications the futures price is one of the price feeds anyway, adjusted back to spot.

What are you doing when trying to trade the news then? Surely you are attempting to trade the figure before the price engines have reacted?

Are you saying that basically all bank quotes on currenex are RFQ rather than live pricing - ie the bank has to accept or decline each trade as it comes in - in effect you are on manual execution?