Is this viable for traders with limited starting capital?

Discussions about brokerage firms for futures, stocks and other tradeable instruments.
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steve
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Is this viable for traders with limited starting capital?

Post by steve » Sun Jun 15, 2003 1:22 am

When I was doing a web search for info on spread-betting firms (I’d never heard of them till I saw them mentioned here) I came across the website of something called E Net Speculation. They’re a Uruguay-based financial-services firm offering mini versions of most of the major futures contracts. Unlike a spread-betting firm, they charge commissions.

Does anyone know anything about this firm? Are they bona-fide?

batuco9
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Post by batuco9 » Tue Jun 17, 2003 10:49 pm

Don't know them at all, but I would go slowly. Surprised that if their track record is in 'finance' they would employ the word 'speculation' so strongly. New York, London, Paris, Singapore, ..... seems a lot....... too much maybe? Not much in their site to go by.

Also, bear in mind that Uruguay is no longer the « the Switzerland of Latin America » as they put it, not after having nearly collapsed as a result of a run on their financial system as the Argentines pulled out, with 'D' and "Selective Default' ratings in place. The country 'should' improve, yet again if you intend to put any relevant money, be prudent.

Moritz Mechanicus
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Re: Is this viable for traders with limited starting capital

Post by Moritz Mechanicus » Thu Jul 08, 2004 3:13 am

steve wrote:Does anyone know anything about this firm? Are they bona-fide?
Are they registered with (or known by) the relevant local authorities?
It might be worth the trouble to find out. I would be very careful indeed with committing money to such a firm, especially when having a limited capital base.

I have no personal experience with spread-betting, but I know that there are a couple of trustworthy companies offering this service in Great-Britain (and they are regulated by the FSA). That may be a far saver (spread-)bet! :wink:

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Warning against E Net Speculation

Post by Moritz Mechanicus » Fri Jul 09, 2004 3:21 am

This is what I found on the websit of the Dutch financial market authority:

AMF issues a warning on the activities of E Net Speculation

The French securities regulator, the Autorité des marchés financiers (AMF), is warning the public about the activities of E Net Speculation and the services offered through the company's websites:

www.enetspeculation.com
www.enetspeculation.org
www.enetspeculation.net

Based in Uruguay, E Net Speculation offers access to the foreign exchange and futures markets through a "mini financial market", which purportedly allows investors to purchase "mini-contracts" that are smaller than standard contracts.

The company's business could be interpreted as that of an investment firm. However, the "mini financial market" in which E Net Speculation offers to invest is not a recognised foreign market, within the meaning of Article L. 423-1 of France's Monetary and Financial Code. Accordingly, French investors may not be solicited by any means whatsoever to trade in this market.

Likewise, E Net Speculation has not been approved in France as an investment services provider for third-party order execution services. Therefore, this "mini financial market" cannot be considered as a multilateral trading facility.

Furthermore, the "mini-contracts" offered online by E Net Speculation have not been authorised by the AMF for marketing in France. Consequently, promotion and advertising of these products is prohibited in France.

The AMF therefore advises French investors to treat this offer with the utmost caution. The lack of authorisation and approval makes it impossible to ascertain whether the company or the investment it proposes can provide the usual guarantees needed to market financial products on French territory.

It should also be noted that the US derivatives regulator, the Commodity Futures Trading Commission (CFTC), has filed a complaint against E Net Speculation and its managers, since the company is not authorised to conduct this business with American investors.

(the original French press release is from 1 Juni 2004)

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Why bother?

Post by TradingCoach » Thu Aug 19, 2004 3:55 am

Using great ideas on a shoestring is my forte. I ran into people who have $3000 and the itch to trade. Here is what I tell them; "trade spreads like you would buy sell the future but spread the bull or bear spread accordingly."
For those who are little more sophisticated I tell to trade forex - they can control 10-15 currency pairs for about 10k and use the turtle system (a variation of course)
If these are not suitable I tell them to go to vegas and gamble they may hit it. Avoid these crazy web based scams. just my .02 cents.

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