Enetspeculation?

I am thinking about getting started in futures. I did a search on google about beginning in futures, and I found this post.


Does anybody know about enetspeculation? They say they guarantees stop loss fills.



From: Narcoz
Subject: Re: Futures for beginner
Newsgroups: misc.invest.futures
View: Complete Thread (7 articles) | Original Format
Date: 2001-10-25 21:45:52 PST


If you are a beginner, you should be trading with somebody like
www.enetspeculation.com
1'000 $ should take you a long way
Regards,
Narcoz

"Marwan" wrote in message
news:
> I want to try trade futures, with IB,
> As a beginner what contract can I trade with 10000$ in cash so it will trade
> round a clock at will not be very risky.
> Is it possible to day trade with 10000$ or there are some restrictions like
> min cash balance?
>
> Regrads.
> Marwan
>
>
>

 

This is scary. They guarantee your stoploss order even if the market limits up or down past it. They will eat the difference of the stop price and what it actually got executed at. Sounds like insurance with other clients money. Plus they are based in a foreign country... not that there's anything wrong with that

 

2. COUNTERPART/MARKETMAKER

(1) E NET SPECULATION S.A. is always counterpart to each transaction ordered by the Customer.
(2) The Customer's attention is expressly drawn to the fact that, in the event of a loss on the part of the Customer, a profit is normally taken by E NET SPECULATION S.A.. Similarly, if the client takes a profit, E NET SPECULATION S.A. normally takes a loss.
(3) E NET SPECULATION S.A. may at its sole discretion hedge the Customer's open positions in accordance with the provisions set down in article 12 (3).

3. STOP LOSS ORDER

(1) Any transactions instructed by the Customer are always accompanied by a stop loss order.
(2) The Customer must define the maximum loss (maximum risk) he is prepared to accept for each transaction he undertakes. However, a minimum amount per MINI-CONTRACT is imposed. This amount varies depending on the product and is defined on the order ticket each time the Customer makes an order to open a position, as well as being indicated on the page "summary specifications for all mini-contracts" which is made available to the Customer.
(3) The minimum amount of the Customer’s maximum risk imposed per MINI-CONTRACT may be changed at any time without warning by E NET SPECULATION S.A., and without retrospective effect on existing transactions.
(4) The transaction is liquidated immediately at the point at which the limit of loss predefined by the Customer is reached. In the event that this limit is not reached, the transaction is liquidated on the Customer's instruction or on it’s expiry based on the last market price in accordance with the provisions set down in article 9.
(5) E NET SPECULATION S.A. guarantees the Customer that no payment greater than the amount determined in paragraph (2) above will be required for any of his realised transactions, even in the event that the effective loss may be greater.


https://www.enetspeculation.com/pub/en/pub.asp?area=open

 

this is probably a scam and very dangerous.. I would suggest to stay away.

 

I couldn't find them on the NFA website. Even though they aren't in the US, in order to trade US markets a company has to be registered with the NFA. I would proceed with care!

-Todd-

 

this is either a jesse livermore type bucketshop, a fx type model and/or a scam. They are betting against the customer like a good casino. I am sure if you are making money they will stop taking your trades at best or keep you money at worst. I wouldnt mind being well financed and being on the other side of the publics trades It seems like a great business model. Heck if you take some big hits you just close your doors in the foreign country and say sorry. Hey Merril Lynch might be behind this company.

 

A good old bucket shop. Now if there was actually some way to guarantee they would honor quotes and give you instant fills..

Like tntneo says, stay away. They are based in South America. Nothing prevents them from simply taking your money AND remaining in business.

 

Can anyone recommend a good futures broker that will accept canadian clients? Not for daytrading, I plan on swing trading.

 

This is not a Futures or Forex account. It's an offshore casino where you bet that the market goes up or down from an entry price that has a large spread.

Avoid!!!!!!!

 

It is a bucket shop.

I played, yes I lost. It was an interesting game. They are betting against you. "commission" costs are high, and change quite frequenly, often 2 or 3 times a week. From a trading standpoint, vrs, using an online platform, not much different. You do not actually trade of course. You are betting on the direction of the trade.

Works like this, enter limit order, if price is traded there you are filled. Enter next limit order if price is traded there you are filled. OF
f course they can do the stop loss thing because it is not really traded. Fairly simple. I might try again someday.