Earn2Trade Founder Charged With Fraud

[destriero]

You seem to know a lot about this stuff.

Can you forward me a link that shows these Pay2Play firms need to be registered?

Many thanks!

Search the NFA. Perhaps you've been on an island and missed the upheaval in the industry. Prop-firms and individuals must be registered with the NFA unless they are already (individuals) member(s) of the exchange.

Or ask Jason; although he doesn't seem to know who signs his check.

 

[LCK2000]

One last comment (I hope). Helios or whomever brings them in and makes them limited partner so that they can operate within the pool and Helios avoids regulation. Pretty smart. And scammy AF. Dude, if I met you in a bar I'd F you up.

Seriously dude... whats with the internet tough guy act? You come off as a 12 year old. Just remember, arguing on the internet is like the special olympics, at the end of the day youre still a retard.

 

[destriero]

Seriously dude... whats with the internet tough guy act? You come off as a 12 year old. Just remember, arguing on the internet is like the special olympics, at the end of the day youre still a retard.

You would know, piker. Why don't you go grab your debit card and buy some combine.

 

[destriero]

Did you get your funding from leeloo yet?

 

[JesseJamesFinn1]

So he admits it.

You're selling fake lottery tickets on a street corner. I'm satisfied, thanks. I am done here.

 

[canoe]

The traders have always had the opportunity to grow their account sizes and from what I understand some of them indeed have. The traders do receive a $25,000.00 or $50,000.00 account. The account has shared margining with the master account and all losses have to be covered by the master account.

this is absolute horseshit; how can you say that with a straight face when it's straight up a lie?

your "$25,000" account is literally just a $1,500 account. helios simply posts enough margin so that the $1,500 drawdown account has enough margin to trade 1-2 contracts. that's it.

i've always thought these funding companies advertising as if they're providing you with a $25k, $50k, $100k, or $150k account is straight up illegal. it's literally false advertising.

 

[trade2020]

Perhaps he knew this would be a problem so he took steps to step away from Earn2Trade- there are many different ways to look at it. The complaint is just allegations and let’s remember innocent until proven guilty but nevertheless what is alleged is the complaint doesn’t look good and it’s in the same industry- finance and trading

He has not been the owner of the company for quite the while. It seems right that an AMA would be with someone else in the company, preferably who does not have CFTC allegations against them.

What can possibly be covered here? We have been transparent since day one. Now there is intense negative exposure of the company owing to these allegations. We are answering questions and issuing statements. We are not trying to "cover shit".

 

[SelfMadeDude]

Agreed. This allegation (if true) is absolutely nothing compared to the shit that the Bulge Bracket does on the Street ---

 

[qlai]

REGULATIONS? Regulations you say!?

Not the main point of this discussion, but for completeness. Talking about equities. My understanding is that to deal with prop firms, a US citizen must be licensed. So they create educational arm to take retail (non pro) customers in and if you pass, you would need to get licensed prior to being funded.

 

[destriero]

I believe this is due to regulations. It’s crazy to me that people are complaining about a service which can give them a chance to trade real money without any track record. You can put yourself through all the tests using TOS free paper trading account. The real problem is that, just like any other retail trading service, most of their customers are gamblers.
So it comes down to a simple choice - provide service with understanding that 98% of your customers will fail. Or not provide the service at all.

Nobody expects these shops to provide an edge. It's like insurance underwriting. The model is predicated on reducing the ratio of payouts to premiums. Sure, they have to dangle the carrot, but what are the odds of a funded trader actually blowing up on a dot shot up/down. Probably 50% in the first three months. How many combines or whatever they call it will they go through with one dude with a limit stop that doesn't trade? No way that ppl are funded to the levels stated on the website. The $50K is likely calculated on the initial margin for overnights.

What is the likelihood that the carrot even exists? I think they maintain low five figures in an account at Dorman and the other FCM mentioned. The marketing BS that they offer you a $50K account is pure fantasy. They give you enough rope to trade a three lot intraday. Wow.

Infinity, Amp, et al. offers $50 Micro for intraday holds. Comms for micros are what, 1/3 of wht E2T is charging? What is the value-add to using one of these scam outfits when you can save the money burned in "combine" attempts and put it to work at AMP?

Bankroll management? If it's so great then use what E2T uses. You're not going to attract OPM in either case so you may as well save on comms and keep 100% of what you kill.

You're telling me you ppl can't scrape together $2K to open an account? What's the logic?