Forex Account Abuse?

Discussion in 'Forex Brokers' started by tyrant, Mar 31, 2006.

  1. tyrant


    Some forex brokers like Oanda offers the options of opening more than one account under the same client name. From what I see, is this going to invite abuses? I can think of 2 examples.

    1) Create track record. Open two accounts under the same name and do the opposite trades. One side wins and the other loses. The winning side will have a "track record" after say 1 - 3 years.

    2) Money Laundering. Again, open 2 accounts and do opposite trades. The winning account can be used to prove that wealth is created from trading gains.

    Any thoughts why the options of having 2 or more accounts are even allowed given the potential abuse?:confused:
  2. Oanda's account/sub-accounts is the greatest advancement/trading platform progression to currency trading for forex traders' benefit to come along this century!

    The only "abuse" is that of which a trader can now avoid the market dishing out to him/herself when this feature is used correctly.

    It's only a fluctuation,

  3. tyrant


    Don't really get what you mean. Can you please explain a bit more?
  4. But I think someone can do the same when he opens his account in Firm A and Firm B, taking the better result.

    Anyway, I think he's not going to earn much if he depends on he trade like that. The % gain is not going to be attractive.
  5. Oh,

    "It's only a fluctuation," ...?

    just a signature.

  6. Opposite trades cancel each other out for twice the spread. Eventually you will have to pick long OR short to capture the gain or loss.
  7. tyrant


    But the opposite trades are done in seperate accounts by one person. The aim was not not make a net gain but to

    1) create artificial track records on one of the 2 accounts. (one is bound to be a winner)

    2) to create "trading gains" in one of the accounts and so can use to launder money. Claim that they are earned from trading.

    I think you have misunderstood the question.
  8. nah...sKaLpZy aint a Grid trader....

  9. The account that is the winner will be up the same amount the other account is down, minus the spreads. Once you close out for your "profit" then what? What if the "winning" account is the loser in the second trade? 50% chance that it will be.
  10. Just label the accounts "winning account" and "losing account"
    Only trade the winners in the "winning account" and the losers in the "Losing account".
    You would think that someone should have thought of this sceme already.
    #10     Apr 1, 2006