Earn2Trade Founder Charged With Fraud

[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.

REGULATIONS? Regulations you say!?

 

[snowman80]

the ‘prop firm’ most likely exists in a partnership form and each ‘funded trader’ is a member of this partnership. all trades go through the partnership account.

but from the E2T business perspective this ‘prop firm’ entity is a cost center, not a revenue center. they have to run it - it’s the carrot

 

[traderjo]

so is the case with Bright trading but they are regulated and you need to pass S7! how come ?perhaps becasue they trade equity and not futures!

 

[Earn2Trade]

Sells examinations. Earn2Trade owns or is owned by Helios but Shawn doesn't really know who owns what. A $50K account offered but shared haircuts. So the entire "$50,000 account" claim is fiction.

Dude, you're not doing your scam company a service by posting to this thread.

Our company sells examinations. We sell subscription examinations. If you want a driver's license, you will pay for an examination. If you go to the eye doctor, you will pay for an examination. If you want to go to university, you will pay for an examination. If you want to get funded by this prop firm, you will pay for an examination. What is the problem here? If you don't like the ethics of paying for an examination then don't pay for an examination.

The trader has $50,000.00 to trade with but has limitations placed on how he can trade, no different from those during the examination. The prop firm covers all losses of the trader, because the trader becomes a limited owner of the prop firm. That is how the trader is allowed to trade the capital of the prop firm.

 

[snowman80]

so is the case with Bright trading but they are regulated and you need to pass S7! how come ?perhaps becasue they trade equity and not futures!

different regulatory regimes

equity arcades like Bright used to be much less regulated also but you are right very similar structure

 

[traderjo]

First of all you and Helios are same ( as per previous disc losers by your owner)
Second for god sake don;t compare your $100-200 examination to Univercity exam!
and third your so called $50,000 is that real $ for each funded trader or notional? I am sure you can clarify that it is not Private info is it it is clarity on one simple but important technical question

 

[destriero]

the ‘prop firm’ most likely exists in a partnership form and each ‘funded trader’ is a member of this partnership. all trades go through the partnership account.

but from the E2T business perspective this ‘prop firm’ entity is a cost center, not a revenue center. they have to run it - it’s the carrot

I get your point, but there is no prop firm. It's a single LLC or sole prop account at Dorman. I am forwarding this thread to a staff attorney at the CFTC. Prop firms operating in the space are required to be NFA members. NFA members are subject to random and annual audits.

 

[destriero]

different regulatory regimes

equity arcades like Bright used to be much less regulated also but you are right very similar structure

Bright is a regulated BD. C'mon.

 

[traderjo]

I get your point, but there is no prop firm. It's a single LLC or sole prop account at Dorman. I am forwarding this thread to a staff attorney at the CFTC. Prop firms operating in the space are required to be NFA members. NFA members are subject to random and annual audits.

Destrieo.. I remember Mr Masten saying that Helios is a CTA!

 

[Earn2Trade]

the ‘prop firm’ most likely exists in a partnership form and each ‘funded trader’ is a member of this partnership. all trades go through the partnership account.

but from the E2T business perspective this ‘prop firm’ entity is a cost center, not a revenue center. they have to run it - it’s the carrot

Honestly I don't know, but let's say that's possible. I can't say for certain whether the prop firm is profitable or not. You would have to speak with the prop firm, as I said I am not privy to that information. Either way, I fail to see the distinction. If the prop firm is profitable from the majority of its traders then great. If only a minority of traders make money in the prop firm and it is unprofitable, as long as it is funded by the owners then there is no difference. Either way, no owners want to lose money. If the business on the whole generates money for the owners by one making more than the other then the same results are achieved.