I guess only my payouts from regulated hedge fund is safe actually. Did not get much payout from such prop firms. Will see how does it play out in the next weeks. If everyone needs to pay back his payouts from the whole prop firm industry (guessing futures prop firms are also included as they are not much better with their simulating "Ponzi" environment, paying out from challenge fees too.) Good night!
The largest FX prop firm named MyForexFunds stopped working now, are they out of business ?
- Thread starter TrAndy2022
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I guess only my payouts from regulated hedge fund is safe actually. Did not get much payout from such prop firms. Will see how does it play out in the next weeks. If everyone needs to pay back his payouts from the whole prop firm industry (guessing futures prop firms are also included as they are not much better with their simulating "Ponzi" environment, paying out from challenge fees too.) Good night!
Seriously ? They want to think that. But it still like a "Ponzi" with their simulating Futures environment. I guess no or nearly no order will ever hit the real futures market. It is all simulated and all payouts are paid from 99.9% loosers or challenge fee takers (traders). Point.
Of course they are also involved. It would be too stupid if that would not be the case. But hey...let them think so for a couple of weeks.
Even in case all trades are traded in real markets with real funds then Apex would need a kind of license to do so. You as trader cannot trade with real foreign money without any license from the other side. Otherwise you as trader needed to be licensed as financial advisor or similar. No way to come out. I see black (to Mr. Black).
Regardless of that, in what world you can take hundred of millions of real money from people/traders without any license and regulation required ? Nowhere. At least a kind of gambling license would be needed if all is simulated trading.
And no I am not a lawyer, I just know basic laws in the financial world. The evidence is clear above. (Sooner or later the regulators needed to step in, especially when it comes to big.)
Of course they are also involved. It would be too stupid if that would not be the case. But hey...let them think so for a couple of weeks.
Even in case all trades are traded in real markets with real funds then Apex would need a kind of license to do so. You as trader cannot trade with real foreign money without any license from the other side. Otherwise you as trader needed to be licensed as financial advisor or similar. No way to come out. I see black (to Mr. Black).
Regardless of that, in what world you can take hundred of millions of real money from people/traders without any license and regulation required ? Nowhere. At least a kind of gambling license would be needed if all is simulated trading.
And no I am not a lawyer, I just know basic laws in the financial world. The evidence is clear above. (Sooner or later the regulators needed to step in, especially when it comes to big.)
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The STP (or A-booking to real market) had shown that quoting and execution was worse than MFF his own datafeed. So bad or unfair trading conditions from MFF side is garbage.
BUT the traders all traded on FX prop firms CFDs with over 50:1 leverage, so that is not allowed for all US residents. Here is a point from CFTC side I see.
So they will likely forbid for all US residents trading CFDs. In UK it is different trading with CFDs is allowed but in EU no more than 30:1 leverage, recently also with leverage restriction in Australia, so I expect a change here on FX prop firms, on that point.
BUT all traders did not trade any product so even NO CFDs too because it was all simulated or virtual trading. So maybe there could be also an exception even for US residents. If in fact no CFDs were REALLY traded only VIRTUAL CFDs where is the problem then ? Even for 100:1 leverage I see no problem then if all is virtual. But then STP thing is bad, because a part really hit the CFD market, which is then NOT okay. So in the end MFF would need a kind of gambling license only for taking hundreds of millions of real money. That could be all, in the best case or outcome I think.
Another problem I see in the near future on all FX prop firms, that nearly noone is getting a payout like less than 1% of all traders.
BUT there are more than 1% of all loosing traders COMPLAINING about the prop firm...
SO that can have more cases from regulators because of that imbalance between number of complaints in relation to profitable traders.
BUT the traders all traded on FX prop firms CFDs with over 50:1 leverage, so that is not allowed for all US residents. Here is a point from CFTC side I see.
So they will likely forbid for all US residents trading CFDs. In UK it is different trading with CFDs is allowed but in EU no more than 30:1 leverage, recently also with leverage restriction in Australia, so I expect a change here on FX prop firms, on that point.
BUT all traders did not trade any product so even NO CFDs too because it was all simulated or virtual trading. So maybe there could be also an exception even for US residents. If in fact no CFDs were REALLY traded only VIRTUAL CFDs where is the problem then ? Even for 100:1 leverage I see no problem then if all is virtual. But then STP thing is bad, because a part really hit the CFD market, which is then NOT okay. So in the end MFF would need a kind of gambling license only for taking hundreds of millions of real money. That could be all, in the best case or outcome I think.
Another problem I see in the near future on all FX prop firms, that nearly noone is getting a payout like less than 1% of all traders.
BUT there are more than 1% of all loosing traders COMPLAINING about the prop firm...
SO that can have more cases from regulators because of that imbalance between number of complaints in relation to profitable traders.
All funded programs are like this, they allure you with the dream of trading a "six figure account", from just monthly subscriptions.
It's amazing really to see how much money you can get from average people.
"And just like that, they make $2k off your gullible ass"....
https://www.youtube.com/shorts/xc1abiBJnEo
It's amazing really to see how much money you can get from average people.
"And just like that, they make $2k off your gullible ass"....
https://www.youtube.com/shorts/xc1abiBJnEo
It feels like playing around the B-Booking business from FX brokers. Which I heard is a $20 billion (!) business per year. So MFF and Co. only had less than 5% of that juicy cake.
My fund offers monthly payouts based on high water mark! And this year I made a profit on every month. So I get regular payouts every month from them.
uh huh.