Transfer money between brokers by trading?

Discussion in 'Forex' started by Kardi, Feb 5, 2019.

  1. Kardi

    Kardi

    I'm yet to figure out this myself.

    Situtation is this, that I've been trading arbitrage with a broker. Broker knows and allows it. However only allows to withdraw 100% profit on a 5 month cycle. I made much more than that, so cannot withdraw that anytime soon.

    So question is, if knowledgeable people in here, can figure out some sort of trading strategy to "transfer" the money to another broker. Maybe some sort of hedging between them, with the goal of winning on target account?
     
  2. Robert Morse

    Robert Morse Sponsor

    Is that a regulatory rule in the country where you trade, that you can't take out your money when you want from a customer account, or is this a prop firm?
     
    VPhantom likes this.
  3. Kardi

    Kardi

    This broker allows arbitrage trading, with agreement to their LP's. And You are placed on a special account with multiple LP's. However this agreement limits profits to 100% every 5 months, even if I can make much more. I'm free to withdraw my deposit at this time, but just not the profits until after 5 months.

    I agree, that it sounds a bit scetchy, but was recommended to this broker for arbitrage.
     
  4. Robert Morse

    Robert Morse Sponsor

    Sounds like you have an allaoction to a hedge fund vs a customer account. Either way, the transfer of funds to another account by trading is not legal and should be avoided.
     
  5. Kardi

    Kardi

    Didn’t quite understand that first part?
     
  6. Robert Morse

    Robert Morse Sponsor

    " This broker allows arbitrage trading, with agreement to their LP's.". Are you trading in their Limited Partnership account or in a customer account in your name?
     
  7. Kardi

    Kardi

    Customer account
     
  8. Robert Morse

    Robert Morse Sponsor

    Then how can they stop you from taking your money out of your account? I must be missing something.
     
  9. Metamega

    Metamega

    Sounds like some offshore forex brokerage racket Robert.
     
    Proptrader23 and abnormal like this.
  10. JSOP

    JSOP

    It's strange that this forex broker would allow arbitrage. Normally they don't. And from what the OP is describing, it looks like some kind of latency arbitrage which usually results in complete forfeiture of all profits made.
     
    #10     Feb 6, 2019