BLuFX

surajms

Recruit
Messages
10
Fellow Traders,

Have anyone heard of BLuFX prop trading firm in the UK. They seem to offer a 25K trading account to trade forex and has a system where profitable traders can advance to higher levels where they allot bigger accounts to trade. They have advertised they only charge a fee of 25GBP/month for the 25K account and 199GBP?month for 50K and higher accounts. The traders get to keep 50% split of the profits. Leverage offered is 1:2 and one should achieve 5% capital growth to be eligible to withdraw the profit. Sounds too good to be true.

Request my fellow traders to share your any valuable thoughts and information on the above-mentioned firm.

Their website is blufx.co.uk/
They have a youtube channel as well. www.youtube.com/channel/UCabi8NLIxAzkjwb4wfW3gvQ

Thanks in advance.
Cheers
Suraj
 

Pharaoh

Colonel
Messages
19,742
Contemplate this for a moment.

You've got 250,000 GBP in one broker account and 500,000 GBP in another broker account. You split each into 10 sub accounts. Now you find 20 people who are willing to pay a monthly fee to trade for you.

Estimates vary, but let's just say that AT LEAST 80% of traders are not profitable. If you get an average array of trades, 16 accounts will lose a large amount and 4 (at best) will show some profits. Even professional account managers can crash and burn at some point, so even if you have 4 profitable traders, any one of them could suffer a loss without warning.

You also have to consider the possibility that 2 or more traders will try to hedge against each other. Then, when price moves, one gains and one loses.

If you get a star trader, that person quickly advances to a 1 million GBP account - and if your star freaks out about swimming in such deep waters (or just hits a rough spot), all the profits you've made from loaning access to all of your money are wiped out and you have a huge loss to deal with.

You would have to be on crack to do this.


On the other hand, look at the TOS and imagine yourself as a client trading their accounts. If you make enough profits, they split them with you (and soon enough, the 50k account doubles to 100k - now you need to make more money to get more profits). It can double again and then advance to 1 million.

Let's look at the 50k starters. If all trade conservatively (not likely), it make take 4 months for the losers to drop out and 4 months for the winners to make enough to get a payment. That's 10 traders x 4 months x 199/month. They've taken in almost 8000 GBP. Unless those 2 successful traders made more than 16 k between them, this whole thing could be running on demo accounts and they'll still be in profit.

They also have a proprietary trading platform - that means their clients have no simple way to tell if the prices are real or not (and if the accounts are live or demo). It would be very simple to shave a little off the profitable traders to slow them down in reaching the payout level and to reduce the losses of the bad traders to keep them motivated to remain enrolled longer. In this scenario, all they want is to keep people paying that monthly fee as long as possible.


I'll wager that these are all really demo accounts and the few "profits" ever paid all come out of trading fees. If any AMAZING traders are ever located, there might be some small possibility of live accounts being provided.


If the company would care to come in, show where the money comes from, show what broker their platform connects to, and have the broker verify that all accounts are live, then I may reconsider my opinion. For now, this looks like a very fast way to waste 199 pounds per month.
 

surajms

Recruit
Messages
10
Pharaoh,

Your comment makes a lot of sense. Thank you very much indeed. I have asked them some questions thanks to you, and still waiting for an answer... ;)

Will update the developments as and when I receive it.

Thanks again.

Suraj
 

ALEXANDS

Private, 1st Class
Messages
59
25K trading account to trade forex is a lot of money at least for a small time trader like me. This just seems to be too good to be true. however, a free bet can be used to develop a trading strategy.
 

Pharaoh

Colonel
Messages
19,742
Use a demo account somewhere to develop a strategy. Then try it out on a very small live account of your own. if it works, ALL the profits are yours.
 

theoakubo

Private
Messages
24
25K trading account to trade forex is a lot of money at least for a small time trader like me. This just seems to be too good to be true. however, a free bet can be used to develop a trading strategy.
It is not too good to be true actually. I thought so too until I found out that there were rules to follow and the rest. I took a plunge some months ago and have been able to make withdrawals. It has been a roller coaster experience for me but with time I found my feet and I've been profitable
 

leticiabrigg

Private, 1st Class
Messages
36
It is not too good to be true actually. I thought so too until I found out that there were rules to follow and the rest. I took a plunge some months ago and have been able to make withdrawals. It has been a roller coaster experience for me but with time I found my feet and I've been profitable
Hey. Please can I get to know more about your experience?
I had tried two other prop funds with trial periods and challenges and it never felt through with the pressure of hitting a target in a month or losing it all.

This time around I am doing my research well before signing up.
Help please!
 

theoakubo

Private
Messages
24
Hey. Please can I get to know more about your experience?
I had tried two other prop funds with trial periods and challenges and it never felt through with the pressure of hitting a target in a month or losing it all.

This time around I am doing my research well before signing up.
Help please!
Okay. your question seems broad to me. Can you be specific on what you'd like to know?
 

leticiabrigg

Private, 1st Class
Messages
36
Okay. I want to know if it has been worth your money and time trading with them instead of funding an account with the subscription fee?
 

theoakubo

Private
Messages
24
Okay. I want to know if it has been worth your money and time trading with them instead of funding an account with the subscription fee?
Oh. Okay.
Sure it has.
For starters I no longer trade with such a s account that I feel jinxed to want to "grow" the account and end up losing it all. I hit my target sometimes in a month or two and that's a lot of profit I couldn't get with my own account while not over leveraging or over risking.
 
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