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Some STRANGE clauses in my live contract. Please comment...

Discussion in 'General Forex Talk' started by mKat, Dec 11, 2009.

  1. mKat

    mKat Recruit

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    I've recently sent info to Dukascopy for an intent to open a live account. I've done a little live trading but never as a primary account holder so these finer details are new to me.

    I'm looking at a jump point of 10k, and if live execution goes well, I'll bump it to 100k.

    Upon reading the fine print I'm a little...bothered...at some of the clauses.

    I'm hoping some of you would care to comment, or help me get a grip on just a couple of the more serious ones. If you have any other thoughts please comment.

    Under Section 15 - Early Termination
    15.1. Without prior notice to the Client, Dukascopy shall have the right to terminate the Agreement and/or to close out all or any part of any position and realize any other assets of the Client heldby Dukascopy, upon or at any time after the occurrence of any of the following default events:
    15.1.2. if the Client dies or becomes of unsound mind; So if I die in a car crash, my wife and baby don't get the contents of my account, Dukascopy does? Hmmmmm.....
    15.1.3. if the Client enters into liquidation or into an insolvency arrangement (includingan arrangement with its creditors), or if a receiveris appointed over all or part of its assets or undertaking; So if I can't make a house payment here in N. America, they can just take all my money over there in Switzerland? hmmm.....
    15.1.4. if any of the representations or warranties givenby the Client are, or become, untrue; So if my personal income that I've stated in my contract lowers due to recession, lay-off etc, they can take my money? Hmmmmm....
    15.1.6. if Dukascopy reasonably considers it necessary for its own protection or the protection of its associates. So with this one they can take my money at any time and just say, "We thought it best to clean you out."

    Now...the way around section 15.1.2 is to add like 4 other people to the account so that if I bite the dust, they can't clear me out...still a dumb clause.

    Can anyone help me understand why these clauses are fair?

    Are these clauses in every broker's contract?

    I welcome any comments.
     
  2. mKat

    mKat Recruit

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    49 views now with not a single comment. Either I'm breaking forum rules by posting these sections of my contract, or else I'm posting stuff that's been posted before.
     
  3. ernest8fingers

    ernest8fingers Master Sergeant

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    ?

    the broker lives to take your money. either by hook(spreads/commission/fees) or crook(like that cooky micro print in your contract) BTW-when you deposit money with any broker-its now their money till they send it back to u-no matter what any law says. This is why the choice of broker you use is very important. EVERY broker has this cooky way of writing everything in their contracts to absolve themselves of EVERYTHING! Its the crazy world of Forex. Just make a bunch of winning large lot trades/withdrawal all profit/repeat until u leave or die?Simple.:) This broker has a good rep with large account/Institutional traders. Chk out this websites Broker Review page.
     
  4. Eric Alyea

    Eric Alyea Master Sergeant

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    Know where is good

    I love it when:
    ernest8fingers posts. It makes me remember that I have all of mine, duct taped and sewn back on (78 stitches little finger, only 34 ring of Rt Hand (left hand only143)so much for a knife fight) but, here and wiggling, excusing the cold weather.

    My 1st question is:
    When the IRS holds your money do you get “interest”
    next:
    If you die and your “People” don’t know to get the money from the IRS. ....
    Who’s money is it????
    Not saying it is correct just, restating:
    “How it IS”

    Oh, Get hold of Nancy Cheah (look under Sergant in member list) she knows of that broker this is her "Promo" group.
     
    #4 Eric Alyea, Dec 12, 2009
    Last edited: Dec 12, 2009
    ElaineMDG likes this.
  5. Pharaoh

    Pharaoh Colonel

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    Pretty much, a broker can kill your account and close your open positions as part of this if they decide they don't like you.

    I think I'd ask them to explain the exact meaning of this phrase:


    As for the 49 views, I have a bad feeling there are quite a few forum members that are still trying to login using the Signals Password.
    :D
     
  6. D-Trader

    D-Trader Private, 1st Class

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    Hi, you wrote that you want to invest 100K as individual. There is a great difference to deal an individual and to deal a company. If you are able to invest 100K why you don`t want to invest as financial institute to get proper protection.

    How long your institue have money it lives. There is no car crash problem. CEO died get the next CEO. If I had soo much money I opened a institutinal account.

    Please read the institutional contract clauses and let us know, we will find the answer. There is always an answer of any question.
     
  7. Nancy Cheah

    Nancy Cheah Sergeant

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    I've been trading with Dukascopy (Suisse) SA for quite some time now and I've not had any problems whatsoever with them yet so far.

    In fact, I'm already trading a 6-figure individual account and whenever I withdraw my profits, it's done professionally and really fast and pronto.

    The clauses are just there for the sake of it I guess.

    Anyway, all I can say is that they're excellent.

    Regards.
     
    #7 Nancy Cheah, Dec 14, 2009
    Last edited: Sep 5, 2011
  8. clem699

    clem699 Sergeant

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    Nancy,it's quite a while that i read your post,where have you been?To the issue being discussed,you think the agreement clause is there just for the sake of it.Well,i am not too comfortable with that and i think anything written in the agreement column should be taken seriously and if not satisfied,you move on to another broker.
     
  9. Forexwatchman

    Forexwatchman Sergeant

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    Very interesting stuff. Makes you wonder if they throw all that in there just to see if you bothered to read the fine print or not, as a matter of fact, maybe I need to go back and do the same thing myself...

    In any case, I would love to hear what a representative would say regarding the need for such clauses since the bottom line here is that its your money and they're the ones that should be convincing you to invest with them, not scaring you away.
     
  10. mKat

    mKat Recruit

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    I fully agree. I enjoy dukascopy's spreads and liquidity, and their platform is growing on me...but this contract may be a deal-breaker.

    Now the advice mentioned above to look into institutional contracts seems very solid. I think I will do that. I'll open the 10k account as a jump point, so that if they pull any fast-ones then I'm just losing 10k. Once things are going smothly I'll just transfer that 10k over to an institutional account with the rest of my trading balance. IF the contract looks any better. I'll take a look and report back to you guys.

    I fully agree. Now the industry has evolved quite a bit in the last few years, but this contract seems like one from the old days when scams were almost everywhere. My understanding is that Dukascopy has applied to be recognized as a bank with FINMA in Switzerland. If this is the case how can a bank have these types of clauses? They can't in N. America.

    Now, again, in the bucket-shop days client accounts were identified as corporate assets under corporate law, which made stop-hunting and other tricks justifiable by exploiting legal loop-holes. I thought things had changed, but I suppose bucketshops will be around for quite a while yet.

    Bottom line is these clauses are immoral.
     

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