ssss: sorry, but thats not true. If HotspotFXr would hold against client-positions or conduct proprietary trading for themselfs, NFA would impose a risk haircut on their Net Capital Requirement, depending on the size of client/trading posititions. For example, Oanda, a marketmaker that does indeed take on customer positions, either by internalizing client-orders, offsetting to a 3rd party platform or just holding on the risk by them selfs, has a much higher Net Capital Requirement (according to latest NFA report USD ~8 mio.) than Hotspot. HotspotFXr is showing exactly the minimum Net Capital Requirement of USD 1 mio. for a FDM, indicating that they do not have any client-position risk at all, and that they are indeed a 'pure agency' broker. Of course you could argue that they are sending faked reports to the NFA, but that would be borderline paranoia in my opinion. That they are the counterparty to all customer-trades as per their user agreement is nothing suspicous, and has to be like this. Anything short of a large(ish) financial organisiation or bank is not able to meet the counterparty-requirements in FX. Same thing if you trade directly through a prime broker.
sss: sorry, but thats not true. If HotspotFXr would hold against client-positions or conduct proprietary trading for themselfs, NFA would impose a risk haircut on their Net Capital Requirement, depending on the size of client/trading posititions. ########################## Dear Sir Did you found by hotspotfx client agreement ? Company have not proprietary trading desk and not involved and any kind of proprietary trading activities No ? By MBT Cleint agreement can read ...undertake proprietary trading activities ... If company have proprietary trading desk ,than in any moment of the time he would trade against he's clients Illustrative example 300 clients from 3000 would short eur/usd and 200 would long eur/usd and company would long eur/usd he trade against clients interess and used information about clients behaviar and tactic (that is not forbidden from USA law) Why you or simple operator can not knew ,what would make great operator ? - You would win in this case ... No doubt .
That's an interesting point, how reliable would such information be and are there other ways for brokers to get round capital requirements ie clearing trades through an affiliate? I'm thinking FXCM who have a very low Net Capital Requirement and Forex Capital Markets as an example.
Hotspot FX does not trade against client orders, take the other side of client trades, we do not profit when our customers lose money. We provide adequate leverage for experienced FX traders. But that is from www side ,not from client agreement Company is not public noted and can not read 10-k Must ask CFTC -Did company have proprietary trading desk or account ? If yes -company is not pure agency ,business of which is solely commisssion ,margin
For EU based clients hotspotfx stated FSA as regulation authority ... FSA is worster in comparsion with USA CFTC (complaint time processing &) Author experience -complaint against etrade europha
Copy ,must expect answer ... clients.eu@hotspotfx.com Questions@cftc.gov Gentlemen Author of this e-mail have some questions about CFTC related company hotspotfx ,adress is www.hotspotfx.com Did company involved in any kind of proprietary trading activities ? Have any interess in affiliate,which are involved Have proprietary trading desk/account ? Relevant answer would appreciated
Read as example 10-k from ameritrade by www.sec.gov Source of revenue,source of income You would not found income from proprietary trading activities but you would found this article by 10-k Morgan stanley or Goldman Sachs Check investment of the Ameritrade . Interess in NITE was liquidated . Compare interess of IB in TMWD You can alsov read 10-k of Optionsxpress ,but after buying Xpresstrade this is pure agent only for SEC related instruments not for Xpresstrade CFTC future and FX . ! Attention Ameritrade clear through Ameritrade . Optionsxpress through Legent - Goldman Sachs ...
Tue, 22 Jan 2008 9:37 PM ( 2 mins 8 secs ago ) Text view Print view From "Calder, Barry" <bcalder@knight.com> [Add] Cc "Lite, Keith" <klite@hotspotfx.com> [Add] Subject RE: Is CFTC hotpotfx pure agent of principal ? Show full header Dear ....... Hotspot FXr LLC does not trade on a proprietary basis. We do not trade against our clients. We do not have a trading desk. We have sales, IT and support desks available from Sunday at 5:30 PM ET until Friday at 5 PM ET. Please let me know if I can answer any other questions. Thank you. Regards Barry Barry E. Calder Director Hotspot FXR LLC 545 Washington Blvd. Jersey City, NJ, 07310 USA Direct Phone: 212-209-1412 Sales Desk: 201-356-1774 Fax Number: 201-748-3167 e-mail: bcalder@hotspotfx.com website: www.hotspotfx.com/main.jsp Hotspot FXR is a CFTC Registered Futures Commission Merchant and a member of the National Futures Association, NFA # 0351580. On the NFA website, URL www.nfa.futures.org, a background affiliation status information center (BASIC) search area is provided.
Yes ,okay But exist example of open public lies on ET owner of MBtrading to equal matter . Answer of Hotpsotfx must be checked by goverment authority as CFTC . If CFTC stated ,that all true ,than hotspotfx is pure agent of principal ,source of revenue and income are not realted to any kind proprietary trading and whic hahve not any interess in third party ,which involved in proprietary trading in spot fx .