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Can we build a better broker?

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Brokerage funding

This is a fantastic idea!

I have been going over many brokerages and the nitty gritty details of them, I must say there is some better ones out there than I had previously been aware, but still not MEMBER/SELF regulated.

I have been turning to trading to raise the funds and have been pretty quiet otherwise, for those that are serious about helping; skills, time, money, whatever, we should start a discussion on putting this into effect, gathering up the resources, I think this could be done in this manner. And more importantly, should be done in this manner.

Whats the best way to have to organize? Skype discussion group?

Best,

Damon
 
Skype discussion group could be good - however, I would use this merely as sort of 'idea gathering' and keeping people in touch quickly. However, it's not immediately traceable, which may pose issues in future.

I would suggest, depending on whether FPA wishes to support this endeavour, and possibly in the process bias against other brokers (maybe an issue) - that we use Skype or some other medium for simply gathering ideas and hosting meetings - however we use FPA to record stuff for 'legal purposes' etc. If FPA doesnt mind getting their fingers in the pie perhaps because of the novelty of this endeavour, they might open up a subforum called "Broker Incubator Project" or something.

As always i'm happy to commit a small amount of financial resources, and a surplus of any other nonphysical resources, so count me in.
 
Hmmmm....invest in "our" own forex broker;yah!

Sounds like a good and sensible idea, BUT....and this is a big BUT....there is still that tiny bitty bit regarding "trust".

If we are talking about usd1k, 10k, or even 50k, we might not have much of a problem (though I personally know a few whom you cannot even trust with usd5, let alone anything in the thousands).

Also, if we all (investors) live within a neighborhood, town, or even State, where we can conveniently pop in at the forex office to check things out, that would indeed be fine and dandy.

However, we are all in cyberspace where everyone is faceless, nameless, and can be from wherever we wish to be from, then "trust" would indeed become a tiny bitty bit of a problem.

Posting this reminds me a lot of the initial enthusiasm shown on old Henry Liu's "From 10K to 10m" scheme. Now most, if not all, are cursing poor old Henry Liu.

Like I did with old Henry's scheme, I think I will take a back seat to this "Trader's Broker" idea...but, hey, don't let me stop anybody from going ahead with if if it can be made to work.
Heck, I will even promise to be one of this new Broker's client....but it will be after it has been shown to be workable.

Good luck to all!
 
This is sort of why I suggest reducing the share unit size to $100, or maybe even a dynamic pool - 'donate' as much as you think you want to, knowing full well that 'you may never see it again' - this is what i do with lending money to friends.. Only give out as much as you never expect back. :)

Also perhaps the first thing that could be setup is the fundraising website - where you have a new bank account linked to paypal or some other vendor, and you can stick in, or pull your money out at any reasonable time, automatically, with the condition that as soon as the target is met, all finances are 'locked in' to the endeavour.
 
...he he he..hissst, after leaving a post dated- 08-14-2011, 09:20 AM, entitled "Gone for a bit", and with the message: "Hi guys, I am going to see the blue Jays in Seattle and then rafting in Oregon next week. I will respond after the 22nd....", and not a beep since then.

But..he he he... you seem pretty quick to resume your post as soon as someone suggested "investing" in your new forex broker company with "'donate' as much as you think you want to, knowing full well that 'you may never see it again".

I am just being honest here in saying that doesn't go down well with me at all.
Still, if some traders wish to invest/donate money into your venture and "not expecting to see the money again", that's fine with me as they are entering this "venture" with wide open eyes.
 
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I think your reservation towards this is now well noted.. Not that I am a fan of moderation for 'positive comments only', but I think you've made your point. Given that the strategy here is a user-moderated approach, why not try to use the same amount of energy in your apprehensions into trying to come up with a model that removes or limits this risk? Other then that, I think you might start soon wasting your breath announcing your skeptisicm.

Perhaps there is an approach we can take, for instance could we secure the funds into an 'escrow' style account, in that a panel/board of members must all vote for what happens to the funds, thus at least removing some independant bias/potential greed?
 
Haiyah...he he he....even though you grit your teeth to say you "Not that I am a fan of moderation for 'positive comments only'", I can just about feel your resentment in what I have posted on the facts of the matter in trying out what has been suggested.

There is an old Chinese saying which I heard from somewhere:
One monk, has plenty of water to drink.
Two monks will have sufficient water to drink.
But with 3 monks, they will die of thirst.

Have you ever have to deal with 3 (or more) shareholders in your company? Believe me, it's not an easy task. I can only imagine what it would be like having 99 shareholders to deal with. What I can absolutely guarantee is that not everybody can agree with anything! An excellent good example would be you & I here at this very moment : ) .... and there are only 2 of us.

At usd100 per share x 100 shareholders = usd10,000 capital, while at usd1k= usd100k capital.

And I don't supposed one can start a high capital venture company, like forex brokerage, with just usd100k (let alone usd10k).
Read more on the subject over at 100Forex Brokers site on "How to become a Forex Broker".

But hey, like I have mentioned earlier, don't let my skepticism stop you guys.
 
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Hi,

Browsing thru this thread, I read nothing about "daily confirmation".

A daily confirmation is a good way to make sure that past trades will not be put suddenly under investigation.

Did you evaluate hardware and IT cost. I mean that you need fast and reliable servers + bandwidth. I know very well the cost for a datacenter. I think you should evaluate this.

By the way did you take a look at the collective ?
 
Haiyah...he he he....even though you grit your teeth to say you "Not that I am a fan of moderation for 'positive comments only'", I can just about feel your resentment in what I have posted on the facts of the matter in trying out what has been suggested.

There is an old Chinese saying which I heard from somewhere:
One monk, has plenty of water to drink.
Two monks will have sufficient water to drink.
But with 3 monks, they will die of thirst.

Have you ever have to deal with 3 (or more) shareholders in your company? Believe me, it's not an easy task. I can only imagine what it would be like having 99 shareholders to deal with. What I can absolutely guarantee is that not everybody can agree with anything! An excellent good example would be you & I here at this very moment : ) .... and there are only 2 of us.

At usd100 per share x 100 shareholders = usd10,000 capital, while at usd1k= usd100k capital.

And I don't supposed one can start a high capital venture company, like forex brokerage, with just usd100k (let alone usd10k).
Read more on the subject over at 100Forex Brokers site on "How to start a Forex Broker company" (or something to that effect).

But hey, like I have mentioned earlier, don't let my skepticism stop you guys.

I'm just trying to work as factually as possible here, with all do respect I find it difficult that can postulate what physical actions my body is undertaken, and that you can esoterically ascertain any of my emotions over a poor communicative system such as a web forum? You may very well be good at picking trends in the market but I can assure you your assumptions as to my reasoning/emotions is well off the mark.

Let's try to keep this professional and on topic rather than delving into the human psyche, shall we? Your apprehension and concerns about placing your funds into the care of this individual/team has been noted, if you do not want to participate then that's fine, nobody will force you. I just suggest that for the most part that expressing that opinion further is going to be a waste of your time. That is not to say that you cannot validily present "Black Hat" thinking models for us to try to find solutions to, however, of which I welcome wholeheartedly.

On topic, regarding your comments about getting shareholders to agree, this could potentially be an issue, yes. What I invisioned was that a board or select group of people form a committee to spearhead the project, and that it is drafted contractually that most of the shareholders (regardless of the actual financial input) are merely present as investors, with no direct control of business direction [but can certainly cast comments to the board]. The board itself would direct decisions, which at the least, finances involved, may limit the initial amount of money that any one person could scam, thus perhaps lessening the risk via distribution. Also, it may be easier to form a paper trail for money if multiple people are critiquing the cash flow. Alternatively if this is totally an altrustic organisation the board members may chose contractually to waive any personal income from the project until all shareholders have been bought out with initial profits (as I mentioned earlier) after which the company could relist on the stock exchange or buy out and stay privately owned, or any other agreement in between.

Regarding $100 unit price, I am aware that this denomination accounts for only 1/10th of the funds, what I was alluding to was that perhaps risk of investors could be mitigated by lowering the unit price, so that potentially more people would be able to invest with a lesser risk to each person, if they choose, in order to obtain the required funds.

While it is not impossible for a board to have ulterior motives, I believe in a large business model that it at least manages some risk of personal greed if more people have access to financial data and business direction plans, while still allowing for the company to develop [so long as the board isn't huge, such that no majority can easily be obtained].
 
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Alright...looks like hissst has now got a strong & perfect partner in setting up a perfect broker.

Guess we now sit back and wait for the Perfect Broker to come into the market.
 
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