Warning: HLV Trading?

Discussion in 'Retail Brokers' started by Don Bright, Nov 4, 2003.

  1. I'm sorry, but I was just asked about a big ad in the Traders.com newspaper. Full page....So I checked out their website....and started to smile....just for your amusement, I offer this from their site:

    The Company and you agree that you will, as an independent contractor to the Company, select purchases and
    sales of securities for day-trades in the Company’s account, with funds provided by the Company (“Stock Trades”).
    You agree that all transactions selected by you are to be day-trades and at no time will a security be held over-night.
    If a position remains open after 4:00 pm E.S.T. you hereby expressly authorize the Company to close any open
    position in your sub-account without notice. You further understand that the Company may close your position at
    any price available, which may result in substantial losses to your deposit. You will receive, as full consideration for
    your services hereunder, “90% of the net trading profits” from Stock Trades that you select. Such net trading profits
    shall be calculated on a monthly basis by the Company, whose calculation shall be final and binding,


    First off, what a "red flag" ...no overnights!! That means that they probably don't have any net capital to cover it. And, they will "close you out" without asking....great, and only 1 cent per share and a 90% payout.....

    I'm sorry, but in this day and age, I would think that anyone with 2 nickels to rub together would see right through this.

    Their ad even highlights "90% payout" and call it "advanced direct access" (whatever in the heck that is...lol) and "only 1 cent per share"....where have they been? and their huge ad says "Keeps Professional Traders in the Black".....but THEY aren't even a Professional Firm.

    You guys check this out, and read the fine print for me, I'm sure it "just gets worse and worse." www.hlvtrading.com

    If anyone from this "firm" wants to call me to discuss, my direct number is: 702.739.1393

    Consider yourselves warned, my ET brethren!!

  2. 8. You understand that no interest shall accrue on either the Deposit Balance, the Trader Sub-Account, or any balances
    therein from time to time.

    From their agreement.....I wonder who the marketing genius is behind all this...


  3. I actually saw this ad also, went to their site and read the fine print.
    So if you're somehow stuck in a stock after close, they can close out your postion at any price. Seeing as some stock's spread to 2 dollars or more (bid/ask), I can just see them taking the other of your trade for no risk profits at your expense.
    The prop shop's servers I was at once went down near the close and we were left holding overnight positions. What would happen at HLV?
  4. wow, Don,

    surprising that you, as a company owner would so obviously and directly point out the flaws and faults of your competitions' contract clauses.

    we would have expected a newly coined handle or as others call them, a "shill" to have been used to do that.

    Brave, gutsy.

    Thanks for cleaning up the industry through open discussion and exposure, and making the consumer (target trader as customer) more aware of the excesses and abuses.
  5. Thanks, Limit...I ran my comments by my Compliance Officer just to be sure that they didn't come off wrong, or as some lame attempt at marketing. When consumers (traders) are better informed, it's better for the industry.

    BTW....no "competitor" here... a completely different animal....
  6. Not sure about this one, but I had a call from a guy...he paid $250 for a lesson on an execution machine from somebody called "Fintech" ..again from New Jersey....They want only $1,000 to start trading and pay out 70%.....anybody see any red flags here, or is it just me?

    If this is another incarnation from my friend Harvey Houtkins "offspring"....(Alltech), then who knows....but in any case, read the fine print before signing.

    After these two popped up...I went back and checked the daytradingstocks.com site to see how many of the firms listed were still viable. ....(yeah, you guessed it)....if anyone knows the peole who run that site, they may want to clean up that page.

    At first it appears that there are a great number of "real" firms listed...some are simply gone, some don't have links anymore (so who knows?), and some simply have disconnected phone numbers.

    One of the reasons I am bringing this up is that the media people keep asking about the number of viable firms since the bubble burst...and point to these boards.....I though I had better do a little research once again, before passing on the latest info to them.

    Anyway....the main guys are still here for you serious traders, retail and prop. I do worry about the newbies, however.

  7. I swear, I have no affiliation with HLV. However, I'm wondering, what is your problem with that ad? If I understand your firm (Bright) correctly, you require traders to put up their own capital or at least some deposit. This firm states that the traders will be utilizing 'firm' capital to trade. To me, I would never want to be in that firm's position of taking all the risk on guys only for what a measly 10% cut of the profits? Of course you aren't going to let traders take overnight positions if you are backing their losses and only taking 10%. Does it make good business sense to do otherwise? The language about closing out the positions at any price etc., sounds like standard legalese bullshit which is in every contract. Truth is if you can't control yourself enough not to keep an overnight position and the spread widens out 2 points, the firm should hit the bid and close your positions. Servers going down, system problems are a different story which should be addressed if someone decided to work with them. Otherwise, I don't see why the deal is so bad. In my opinion traders nowdays are expecting way too much payout and way too little risk. Do you think your hard work is worth the dollars that they are going to risk on you? I think not! Just my opinion, again, absolutely no affiliation with HLV, in fact, didn't see the ad.
  8. If you can't see anything wrong there, then I can't really help you.

    If you want to give your money to someone who says :

    "You understand that the Company is not a securities brokerage firm, and holds no license
    or registration from the SEC and NASD, but is a private company engaged in trading and investing in securities for its own account."


    "You understand that no interest shall accrue on either the Deposit Balance, the Trader Sub-Account, or any balances
    therein from time to time. "

    I could go on and on, but the regulars on this board will have a field day with this one.

    They admit that they are not even registered, you get no interest on your money, you have to close out every day, they don't even say who their "broker" is...maybe they'll change it every day, or worse yet, sell the order floor (a questionalbe practice at best, especially if not disclosed). Their rates are exceptionally high for any serious trader.

    Anyway, just a bit humorous, but on the more serious side....when traders get screwed, it's bad for the industry.

    Rather than "bash them" on the public forum any more....feel free to PM me for additional comments.

    Don Bright 702.739.1393
  9. shneed


    Is this legal? I thought only brokers can collect/solicit money from people.

  10. I obviously cannot comment on the legalities of this venture, but the red flags seem to be there.

    But, just to be "fair and balanced" if one of their officers wants to call me to discuss, I will be glad to chat. I always assume that there may be a chance that I'm missing something.

    #10     Nov 5, 2003