chrisbliss
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is someone trading with Divisa Capital?
- Thread starter chrisbliss
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how do you know it for sure?
have you contacted the bank and got confirmation that clients acct is segregated
from company's one?
simply divisa claim of it is not enough at all
by the way
has divisa received licence of new nz regulatory body?
be so kind provide the number of it
chrisbliss
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I know because I sent my money there when I funded my acount,
because it is in another country my bet is it's segregated
and thats what they say to.
no I have not contacted the bank regarding that.
if you live in Uk
maybe you could checkit for your self
I really don't know how I would proceed
and besides Im not english and talk very bad english.
I write english a lot better than I speak it.
Citibank N.A.
Citibank N. A. Citigroup Centre
25 Canada Square
Canary Wharf
London E14 5LB
Citigroup Centre, 25 Canada Square
Canary Wharf, London E14 5LB, U.K
their acount number GB22CITI18500812325802
they told me they are in process of licencing with the new regulatory body
and that they would keep me posted,
what I understand they are a huge company,
and Im sure they will register.
I will be happy to post their number here
didn't hear anything yet though
maybe it's a long process?
because it is in another country my bet is it's segregated
and thats what they say to.
no I have not contacted the bank regarding that.
if you live in Uk
maybe you could checkit for your self
I really don't know how I would proceed
and besides Im not english and talk very bad english.
I write english a lot better than I speak it.
Citibank N.A.
Citibank N. A. Citigroup Centre
25 Canada Square
Canary Wharf
London E14 5LB
Citigroup Centre, 25 Canada Square
Canary Wharf, London E14 5LB, U.K
their acount number GB22CITI18500812325802
they told me they are in process of licencing with the new regulatory body
and that they would keep me posted,
what I understand they are a huge company,
and Im sure they will register.
I will be happy to post their number here
didn't hear anything yet though
maybe it's a long process?
Last edited:
accounts can be segregated in words but not factually
example
finfx claims the same but when i emailed straightforward question about it
they admitted they can touch client's funds
(at least they did not try to wriggle out)
and i appriciate their honesty
"....1. According to our Terms of Use clients' funds are kept in FinFX's bank account. Funds shall not be used to cover FinFX's running expenses. They are only used partly as collateral which allows FinFX to carry out its business. They are treated as segregated funds in the company's accounting and are reviewed by certified auditor....."
now you see that any claim on website and in marketing in general
can be..."not fully correct" so to say
second point
check divisa thread on forexfactory forum
find that nz trader posts whos info i posted on this thread
and ask about longevity of obtaining licence from new regulatory body
(he/she sounds very knowlegeble and well informed and can help with advice)
after all this is your funds on divisa acct
and you should not trust every word of a broker
One has to be really careful about "segregated accounts" read the fine print
1) - The account may be segregated from broker business money but that does not mean individual segregated account but all client money pulled in one Seg account = any short fall for any reason in that account when and if broker goes bust will be shared by all clients!
2) Does the law of the land in which broker operates allow Broker to touch Seg account!
3) Many brokers ( Australia based OTC type) cleverly impress upon you that the Seg account is held with one of the big 4 banks and thus money is safe... once again false sense of security .. true that the money kept with those banks will be safe but the issue raised in point 1 still applies.
many retail traders don;t ask the pointing questions
Currently I am exploring a CFD provider who offers CFD on US S&P 500 Futures ...claims that it is ECN broker but it is not clear yet if the S&P 500 CFD is true ECN or market maker because on the demo platform it shows " The price will be quoted by dealer"
Unless you ask and ask for specific answers you will not get calrification
1) - The account may be segregated from broker business money but that does not mean individual segregated account but all client money pulled in one Seg account = any short fall for any reason in that account when and if broker goes bust will be shared by all clients!
2) Does the law of the land in which broker operates allow Broker to touch Seg account!
3) Many brokers ( Australia based OTC type) cleverly impress upon you that the Seg account is held with one of the big 4 banks and thus money is safe... once again false sense of security .. true that the money kept with those banks will be safe but the issue raised in point 1 still applies.
many retail traders don;t ask the pointing questions
Currently I am exploring a CFD provider who offers CFD on US S&P 500 Futures ...claims that it is ECN broker but it is not clear yet if the S&P 500 CFD is true ECN or market maker because on the demo platform it shows " The price will be quoted by dealer"
Unless you ask and ask for specific answers you will not get calrification
segregation of accts is a very dubious definition as you rightfully pointed out
and forex is always otc
why the historical records of a broker is of paramount importance
and "forex only"(without futures/cfd) broker must be looked upon with scepticizm from the very beginning
after all it is about reliability and thus money safety
-----------
it seems you confuse future and cfd
one is a product of bourse the other is a contract with broker
why "price is quoted by dealer"
the importance is if cfd is tightly linked to underlying instrument (to be dma)
--------------
be so kind to tell what is that broker you are interested in
i'd like to look and compare it with my current one
(promise to give my opinion to you)
regards...and lucky trading
chrisbliss
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your post are very valid, it's very hard to investigate this,
and if you are from another country and don't understand the rules
and laws of the countys the brokers are located in,
it's nearly impossible to get any result,
I wish they all would be open about this sort of stuff because it is in their interest,
but maybe not if they don't have any of this things,
what goes for CFD's I can tell you that they are not traded on the real market,
any broker saying he is DMA with CFD's is simply not telling the thruth,
they are OTC instuments and only MMs have them,
they need to hedge your positons and thereby they take a risk with their own money invested,
if that money is the clients funds or their own is hard to know,
but there is a possibillity both ways,
they could loose also so this type of broker is more dangerous.
they hedge position without any underlying technical or fundamental analysis,
if you buy a CFD they sell the same CFD and vice versa
they are allways trading against you so there is a clear conflict of interest there,
they are simply betting on that most of their clients are loosers,
but lets say a few good traders sign up with them,
they are in deep **** because they will loose most positions they hedge against these guys, and what if they deside to trade bigger amounts,
because they will, they are winning traders,
how are they going to cover their loss?
with their own funds or with the clients funds?
here is what segregated acounts are important!
this is what can bring a broker down to it's knees.
as with that Australian broker.
but how can we know if they really have segregated acounts or just saying so?
after my own investigations I found it's nearly impossible to find out,
so I wont even bother trying anymore,
but what I have found out is if they really have segregated acounts they (mostly) will say that somewhere on their webpage, if they don't have that,
it is in their interest to keep it silent.
but we also seen some flat out lies about it so we really cant be sure about it.
brokers maye have ECN's but inspite of what most traders think,
and what I keep reading in most forums,
ECNs are good! ECNs don't trade against you!
thats not true at all, a ECN is a network the broker have set up,
so if you are trading on a ECN you are not trading on the real market at all!
you are trading within the network with the other clients.
so in that sence he is STILL a Market Maker
because he created that market wich is not the real market.
he is STILL able to to trade against you and hunt your stops and all that stuff,
the only thing good about it is they usually have low spreads.
as I see it, the STP model is a lot better, even if you have to pay a higher spread,
just to know the broker don't mess with you is worth that alone,
DMA is the best, low spreads and no messing with trades,
since they don't have any money invested in trades against their clients,
the chance they would go down is one in the million.
what we all should strive for is DMA and STP
the risk is something to consider more seriously,
mostly traders only think of their own risk when money is involved,
but the brokers risk is even more important to know,
because if he goes down so do you.
vantage had negative reviews........no trust...although they have office in europe
i tried demo fx but not cfd....uninstalled...
i mentioned my broker on this thread(look at posts above)
probably it was aussie(banner t2w)
but does it really matter if a parent company does not evoke trust?........
Hi,
I hope my post will not be off topic, it is related to Divisa's demo accounts. Any help would be appreciated.
I installed both the Currenex Viking and the MT4 Quant platforms and running on demo accounts for a while. One strange thing I realized is that the margin calculations are different when comparing the platforms.
Example: I am entering a trade with a standard Lot (100K) on EUR/USD pair, leverage is 1:100.
The margin used in Currenex Viking is 100 000 x 0,01 x quote for EUR/USD let's say 1,42345 = 1423,45 which I think is correct.
The margin used in MT4 Quant platform is simply 1000, which I think is not correct assuming that both demo accounts are in USD.
What is the reason for this difference? Can anybody explain?
Thank you...
Kind regards,
Oscar
I hope my post will not be off topic, it is related to Divisa's demo accounts. Any help would be appreciated.
I installed both the Currenex Viking and the MT4 Quant platforms and running on demo accounts for a while. One strange thing I realized is that the margin calculations are different when comparing the platforms.
Example: I am entering a trade with a standard Lot (100K) on EUR/USD pair, leverage is 1:100.
The margin used in Currenex Viking is 100 000 x 0,01 x quote for EUR/USD let's say 1,42345 = 1423,45 which I think is correct.
The margin used in MT4 Quant platform is simply 1000, which I think is not correct assuming that both demo accounts are in USD.
What is the reason for this difference? Can anybody explain?
Thank you...
Kind regards,
Oscar
chrisbliss
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I read an article about this before some time back,
can't remember where though,maybe if you Google it you find it,
if I remember correctly, it was all about Metatrader calculating a little bit differently, it's still 100 to 1,
in a nutshell, the thing was that Metatrader was not built originally to function
on ECNs and STP lines connections,
it's was originally built for MM's to play around with in their own markets, networks,
and it did not function properly on real STP ECN type of brokers,
due to high demand from clients and customers,
they had to make some serious changes to the platform to make it compatible with these kind of connections or lines
because it simply used a decimal to much or to less, something like that,
my guess is that Metaquotes worked with the brokers individually on this.
because brokers uses different kind of connections.
and after all they have the copyright,
what you see is probably some leftover still in the application from the old days,
I'd say it's nothing to worry about,
looked again at vantage demo
because they've sent notification about index cfd available
...well....execution is very slow
and there is a clear perception that one trades against v.d. plugin
bottom line...my distrust to vantage only has grown even more
....and how it can work against you just check this(about big boy fxcm)
http://www.trade2win.com/boards/bro...on-against-fxcm-orders-refunds-customers.html
-----
chrisbliss
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no doubt that you are right,
ANY broker that offers CFDs are trading against you,
because CFDs are OTC and are not traded on the real market,
in other words they can ONLY be traded in house,
that means when you win they will loose
and they are not going to like you if you win.
they may even prevent you from winning,
with plugins and crap like that.
so why even bother with CFDs?
why even bother with a broker offering CFDs?
CFD = criminal
WHY bother with any OTC product at all!
Only Exchange Traded ...
I still wonder why does CME,NYSE, Eu exchanges have not come up with single FX traded spot market
That way it would be a true exchange
Shaun12uk
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Anyway Chrisbliss you were the orignal labrat for this Divisa post if I remember rightly can you please confirm your experience with them and for me confimr the following:
1 Speed of execution
2 Spreads
3 Cash transations - withdrawals
4 Customer Service
5 Regulation - any update.
Cheers
1 Speed of execution
2 Spreads
3 Cash transations - withdrawals
4 Customer Service
5 Regulation - any update.
Cheers
