Hi, Traders
I am curious about such things as advertised about funded accounts.
From what I can tell and what I understand is this:
They seem to be something that is mostly non regulated.
They appear to be something that you go through their trial run for 30 day and you pay fees etc.
They seem to bypass regulations because as I understand it your trading a demo account of some type. Then they are copying your demo with either another demo or another real account. You keep the first default amount, then you can some sort of % after that such as: First 5k you keep, then you get 70% of the profits after that. You don’t incur any losses, but you pay fees, and you partake in the profits.
Now haveing said this I don’t really know how it all works.
I can only speculate that there are a few ways they might get away with this without being regulated by trading regulations. Seems like it’s more gambling regulations that might be in play here.
I mean consider for a moment that most traders lose money. So if they charge a fee for you to prove your self and to pay you profits, but you do not pay losses, then this sounds like a demo account.
If everyone pays fees, and most lose money then the only ones getting paid are the winners. So they could theoretically do this with all demo accounts only and no real money at all except the fees that are paid by the losers, or the small number of winners that can earn money from the demo account.
I really don’t know how it works.
However, if these are demo accounts that they copy from you then I don’t know how regulations really come in to play when your trading a demo account and they want to copy your demo account. Then in turn they pay you a portion of the profits etc.
NOW on the other hand I would not want to be involved with money laundering either and this could open the door for this as well.
What do you think about this ? And what do you know about any of these types of so called funded accounts ? Is this really even legal or is this under gambling regulations ? Or is this somehow being used for laundering etc. ? Can they really bypass regulations somehow by doing this on demo accounts and the copying those accounts etc ?
Please advise thanks