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Author Topic: Forex funding  (Read 4666 times)

Offline Mic

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Forex funding
« on: July 10, 2011, 10:37:07 PM »
Anyone know where to obtain funding to start a trading business? I asked my local bank, and they didn't even know what forex was. After I told the president, he said they wouldn't fund a forex business.

Offline DamBuster

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Re: Forex funding
« Reply #1 on: July 11, 2011, 01:56:11 AM »
Sounds like a very strage bank if the dont know what Forex is!!!  :)

Offline Mic

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Re: Forex funding
« Reply #2 on: July 11, 2011, 05:12:33 AM »
Sounds like a very strage bank if the dont know what Forex is!!!  :)

It's a small rural bank.    :)

Offline donnaforex

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Re: Forex funding
« Reply #3 on: July 11, 2011, 06:57:11 AM »
Anyone know where to obtain funding to start a trading business? I asked my local bank, and they didn't even know what forex was. After I told the president, he said they wouldn't fund a forex business.

What do you mean by a trading business?

- to actually trade
- to create a new commercial product, EA, etc
- a new broker
- something else?

I don't know where abouts you are in the world but funding for any kind of business is a tough proposition, let alone one which is not a well known entity. I got called by my bank to visit a 'financial advisor' not long ago and i went - the guy didn't know what forex was either, it was funny.

If the money is purely for trading then you will have a very tough time indeed. Some brokers actually offer credit to clients, but they are normally traditional stock brokers, i haven't seen any forex brokers do this. Which would leave you the unsecured personal loan / credit card route / remortgage the house, etc. I'd be horrified to think that anyone would borrow any money at all purely for trading, very scary indeed. To anyone reading this, please don't do it!

Alternatively, if you are trying to start a business - well come and speak to me first, because you can do things much cheaper than you may realise (i started this site with $30 - true it cost me a whole lot more than that since, lol). Starting a new broker would be the only thing i'd think you need serious funds for if you want to do things properly, and unless you have a lot of background and experience as a broker previously i highly doubt any bank would take that kind of risk on.
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Offline Johno

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Re: Forex funding
« Reply #4 on: July 11, 2011, 08:01:41 AM »
I think I remember a while back (3 or 4 years?)seeing a forex broker who took on affiliates (if thats the word) and they rebrand some of their business to your heading, and your web-page.

I cant remember who it was, a cyprus group? I dont think it was russian. .... anyway, just thought i would mention it. might be worthwile googling.

Offline Mic

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Re: Forex funding
« Reply #5 on: July 11, 2011, 10:17:06 AM »
Anyone know where to obtain funding to start a trading business? I asked my local bank, and they didn't even know what forex was. After I told the president, he said they wouldn't fund a forex business.

What do you mean by a trading business?

- to actually trade
- to create a new commercial product, EA, etc
- a new broker
- something else?

I don't know where abouts you are in the world but funding for any kind of business is a tough proposition, let alone one which is not a well known entity. I got called by my bank to visit a 'financial advisor' not long ago and i went - the guy didn't know what forex was either, it was funny.

If the money is purely for trading then you will have a very tough time indeed. Some brokers actually offer credit to clients, but they are normally traditional stock brokers, i haven't seen any forex brokers do this. Which would leave you the unsecured personal loan / credit card route / remortgage the house, etc. I'd be horrified to think that anyone would borrow any money at all purely for trading, very scary indeed. To anyone reading this, please don't do it!

Alternatively, if you are trying to start a business - well come and speak to me first, because you can do things much cheaper than you may realise (i started this site with $30 - true it cost me a whole lot more than that since, lol). Starting a new broker would be the only thing i'd think you need serious funds for if you want to do things properly, and unless you have a lot of background and experience as a broker previously i highly doubt any bank would take that kind of risk on.

Donna,

I meant purely for trading. And yes I realize it's probably not a good idea to borrow money for this, but I keep thinking if I could find a long-term profitable EA, it might be worth the risk. But I have yet to find such an EA.

Offline qbast

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Re: Forex funding
« Reply #6 on: July 11, 2011, 10:46:30 AM »
"Trade only with money you can afford to lose" is very good idea. And if you could afford to lose it, you would not have to borrow it.
Any "long term profitable EA" can stop being profitable at any time. Check out eurosmarter thread - this bot had 11 years backtests + 4 year 99% quality backtests showing it to be profitable and safe. And yet weeks after release it wiped out accounts.
Of course you will do what you wish - it is your money - however I really advise you to reconsider and instead of thinking how much you can earn, look at worst case scenario (which in forex is quite probable).
Also don't forget that long-term EAs have pretty low yields and sometimes go through months of drawdown. After substracting interest you have to pay on loan it probably won't be worth the risk.

Offline donnaforex

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Re: Forex funding
« Reply #7 on: July 11, 2011, 11:11:09 AM »
Really scary idea - please don't!

If you are really dead-set to do this despite all the warnings, i'd suggest having a 'trial run' with some borrowed money that you will be able to pay off, eg  $500 to $1000 on a credit card ONLY if you are financially stable! Try it for 6 months and see how it goes then add it all up and see if it is really worth taking the risk with more money. Make sure you factor in all the interest payments and charges. Unless the gains are pretty substantial i would hope a small exercise like this would be enough to put you off. I really can't imagine any bank that would take the risk with a loan for this purpose - friends/family might if you don't mind facing them if you lose it all.

For what it's worth, i think this is a crazy idea. Definitely not one to even attempt unless you are very financially secure, and even then if you are very financially secure you should be able to come up with enough trading money - maybe by funding your trading account with a percentage of your disposable income each month? If you are pretty solid financially and have enough income to consider a loan then you should have enough income to cover funding your own account over time?

I have no idea what kind of loan you are after, but lets just pretend it is $40k, which is around what you'd need to make a reasonable/worthwhile amount trading - then the repayments on that loan are going to be pretty big.

Let's say it was a 5 year loan, which sounds likely to me, the repayments on that alone would be around $750 a month assuming a very very low interest rate of 5%. Even taken over 10 years it would be $423 a month. That money could just be put straight into trading instead and you will save a fortune in interest (more than $10k in our 10 year example). I mean, $750 a month if you have that much, into a trading account within 12 months will be big enough to start 'meaning something' more than just play money.
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Offline Kristofer

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Re: Forex funding
« Reply #8 on: June 17, 2015, 09:53:02 PM »
I would not use the credits and debts in order to have a deposit. It is very risky. Most have accumulated some money, then I use bonus

Offline petersurrey

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Re: Forex funding
« Reply #9 on: June 21, 2015, 10:41:57 AM »
forex is probably the only business which requires almost zero funding to get started, compared to,say, starting a conventional business which requires a multitude of costs and fields of knowledge ( HR, H&S etc) . IF you are any good a 500 deposit is enough to get the 'business' off the ground, and only when you have a few years profitable and consistent trading under your belt do you then start to add more funds and gear up.

Avoid being exposed to huge % losses, by either risking too much per trade, having too much exposure to one particular broker or adopting a risky trading plan (MG Grid etc). I tend to focus on very short term trades with no weekend position holds and keep meticulous records.If I use a system I dump at the first sign of weakness which must have verified myfxbook 3month plus records.

Most systems fail over time so trade with care and avoid the large % monthly win system traps (Keltner Coliseum...)  - you can always gear up once you find a reliable systems/technique...

Offline hybrid

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Re: Forex funding
« Reply #10 on: February 22, 2016, 07:25:31 AM »
I use bonus for trading as a beginner . It helped me for many months t get real trading experience. Then I invest 30% of my saving in trading use it with much care ,trade in low risk . When I was able to get profits then I had confidence to grow my account gradually . No I am having thousands in trading account.

 

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