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Beware of brokers offering Zero spread!

by Michael Greenberg
    Beware of brokers offering Zero spread!
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    pulp_fiction

    NewFX Pulppromotion- Trade with ZERO spread AND ZERO Margin.

    Opa!

    So you are asking yourself what's wrong with not paying for trading? The answer is simple: everything is wrong. In this cruel and competitive brokers' world - nothing is for free, so if something is offered completely for free you should ask yourself why?

    The answer is given by FX Pulp right away: we are the only broker that lets you gamble with your money AND lose more than you invested. Yes that's what ZERO margin means my friends: "we give YOU the opportunity to be left with ZERO money and pay ZERO commission for that opportunity ;)"...

    ZERO spread also means that the broker makes money in other ways: FX Pulp to the best of my knowledge is a market maker, therefore it makes money from trader losses as well (nothing wrong with that in general: it's legal everywhere including the US, but that's something you should know).

    Not only that, FX Pulp is also limiting the profit you can make: no less than 35 pips and no more than 100 for major currencies, so that means you'll need to leave the position open until you are in that range = more chances to lose it all...

    Here's the full "promotion":

    The ZERO Account
    Day by day, we all witness growing investor awareness, and more literacy in financial markets, especially in the foreign exchange markets, or what people call the Forex
         markets, which proved to be one of the broadest, biggest and most profitable markets there is. That is why FXPULP, and since its inception, determined to be the pioneer in offering the best and the latest for its clients, wherever they are across the globe.The new revolutionary idea we are putting forth is very simple, ZERO Accounts, yes ZERO: ZERO Spread, ZERO Margin Requirements, ZERO Liquidation, And ZERO Commissions. What is ZERO Spread? Our basic philosophy in zero accounts is to reduce trading costs to the minimum, or shall we say to zero, and the spread was one of the main challenges that FXPULP experts faced. Taking the spreads to 3 pips, 2 or even 1 pip sounds good at first… but how about taking it completely down to zero??!! Yes imagine you are trading FOREX with ZERO SPREADThe main objective from taking the spread to as low as nothing is for you dear investor, enabling you to take advantage from every pip in the market, the profits start from the first pip, you don’t need some points to cover your spreads and others for the commissions, what you get is each and every pip the market gives. What are ZERO margin requirements? A margin is an amount held and blocked from your account equity in order to be able to place your trades in the market.Zero margin requirements means that no money will be held and blocked in your account as margin for the trades you place; and you will be able to invest in the financial market even if your account balance is less than what is required to cover your trades as margin. We will provide you with the margin you need to take as much positions as you want; you only have to pay to cover any losses resulting from the given trades, or get paid for the resulted profits. Normally; investors deposit money in the trading accounts which will be blocked for each trade according to the size, and the required margin, usually determined by the Leverage
         that the broker offers. The below table demonstrates the customary required margins:
    LeverageRequired Margin per Contract
    1:1001000$
    1:200500$
    1:400250$
    1:500200$
    FxPulp has provided investors a cutting edge revolutionary offer: unlimited leverage Do you know what does this mean?? It means you don’t have to deposit money to be able to trade or to avoid a margin call, all you have to do is to send the money you are willing to risk and that’s it, and you will be able to trade freely whatever product you want, with the size you want, and you don’t need a penny to cover it. Why ZERO Commissions??!! We at FXPULP believe that taking a good investment decision and make some money out of it is a very difficult thing to do in these markets; it needs a lot of reading, following up and analysis, which is why we believe that the profits you make are yours, and it’s not for anyone else to share with you, you bear all the risk, and that’s why you should enjoy all the profits…That was the idea when we eliminated all the costs, from commissions to swaps and hidden fees, we just swept them all away so you can take all your profits, each and every pip you make in this market is yours and yours only… What is ZERO liquidation? Liquidation means closing all open positions when your equity goes below a certain level…Your positions get liquidated when your margin level drops below 100% or 50% or any other level that brokers impose on you, which makes the chances hard for investors to benefit if the market moved back in their favor, and that’s why we offered to take this percentage to zero, so your positions stay open until your account equity drops down to zero, which will give you the full chance to benefit from your investment. The ZERO account will set your investments free and open new horizons, ones that didn’t even exist before in the FOREX Market.
    • Trade freely with no restrictions.
    • Your total freedom from Spreads.
    • Your total freedom from Margin Requirements.
    • Your total freedom from added Commissions and Costs.
    • Your total freedom from the fear of Liquidation.
    FxPulp Zero Accounts Trading Rules & Policies:
    1. Each client can open only One Zero Account with FxPulp.
    2. Spreads for Zero Accounts are as follows:
      • 0 spreads on all 7 Major Currencies.
      • Normal Spreads for Cross Currencies (As specified in FxPulp Products Specifications).
      • Normal Spreads for Precious Metals (As specified in FxPulp Products Specifications).
      • Normal Spreads for U.S Indices (As specified in FxPulp Products Specifications).
      • Normal Spreads for Energies (As specified in FxPulp Products Specifications).View our Products Table of Specifications…
    3. The required margin to open any trade on any of the products we offer is zero Dollars.
    4. Commissions and fees for zero accounts will be determined according to the table below:
      • Zero commissions and fees for all 7 major currencies.
      • Zero commissions and fees for Cross currencies.
      • Zero commissions and fees for Precious Metals.
      • $7 per standard contract fees for U.S Indices.
      • $7 per standard contract fees for Energies.
    5. There is no minimum initial deposit specified to open a zero account.
    6. The minimum allowed volume per each trade on Zero Accounts is 1 standard contract, or 1 standard lot (100,000 of base currency).
    7. The maximum balance in the zero account shall not by any chance exceed $5000, any amount above $5000 will be transferred directly to the clients’ normal trading account.Demonstration:
      • When a client applies for a Zero Account, FxPulp will open a zero account in addition to another normal Standard, Mini, or Micro account under the same name.
      • At any point, if the zero account balance - due to accumulated realized profits - exceeded $5000, the excess amount will be automatically transferred to the parallel account.
      • The client may continue trading on his/ her zero account normally, and at any time, he/ she may trade on the other parallel account as well, or request to withdraw the profits.
    8. All positions will be automatically closed and the account will be liquidated when the equity of the account reaches zero dollars.
    9. Pending orders and contingent orders (Stop Loss, Take Profit, Buy Stop, Sell Stop, Buy Limit, and Sell Limit orders) are not allowed on zero accounts. Traders can only place market orders (Instant Execution).
    10. Expert Advisor Program is not activated on zero accounts.
    11. Trailing Stops tool is not activated on zero accounts.
    12. Hedging is not allowed on zero accounts.
    13. All open positions will be closed at the end of each trading day. If the client did not close his/ her open positions during the trading day, they will be automatically closed (regardless to the age of the positions) at the end of every trading day according to the below table:
      CategoryDaily Closing (GMT)
      Major Currencies21:00
      Cross Currencies21:00
      Precious Metals (Gold)21:15
      Precious Metals (Silver)21:15
      U.S. Indices (Dow Jones)20:15
      U.S. Indices (NASDAQ)20:15
      U.S. Indices (S&P)20:15
      Energies (Crude Oil)21:15
      Energies (Natural Gas)21:15
    14. Minimum and maximum profits:
      • To be able to close an open position in your zero account, there is a minimum and a maximum number of profit points that will be applied.
      • If the client attempted to close an open position that has less number of profit points than the minimum specified, the position will not be closed and executed.
      • If the client closed an open position that has a larger number of profit points than the maximum specified, the position will be closed and only the maximum number of profit points will be realized.
      • Minimum and Maximum number of profit points for our financial instruments are as follows:
        CategoryMinimum ProfitsMaximum profit
        Major Currencies35 pips100 pips
        Cross Currencies35 pips100 pips
        Precious Metals (Gold)5 Dollars10 Dollars
        Precious Metals (Silver)10 cents60 cents
        U.S. Indices (Dow Jones)35 points100 points
        U.S. Indices (NASDAQ)10 Points35 Points
        U.S. Indices (S&P)5 Points15 Points
        Energies (Crude Oil)35 cents1 Dollar
        Energies (Natural Gas)8 Cents25 Cents
    15. Minimum and maximum losses:There are no minimum or maximum for the losses, you can close your trade at any price you want if the market goes against you, an option we set to make sure that you can limit your losses.
    16. Zero accounts shall fall under the same legal requirements as all other accounts, and are subject to all terms and conditions in the trading agreement with FxPulp.
    17. This policy is subject to change at any time without prior notice. The latest policy that exists on www.fxpulp.com – the official site of the company- at the moment, is the effective policy for zero accounts. The client is responsible for regularly reviewing this policy and rules.
    pulp_fiction

    NewFX Pulppromotion- Trade with ZERO spread AND ZERO Margin.

    Opa!

    So you are asking yourself what's wrong with not paying for trading? The answer is simple: everything is wrong. In this cruel and competitive brokers' world - nothing is for free, so if something is offered completely for free you should ask yourself why?

    The answer is given by FX Pulp right away: we are the only broker that lets you gamble with your money AND lose more than you invested. Yes that's what ZERO margin means my friends: "we give YOU the opportunity to be left with ZERO money and pay ZERO commission for that opportunity ;)"...

    ZERO spread also means that the broker makes money in other ways: FX Pulp to the best of my knowledge is a market maker, therefore it makes money from trader losses as well (nothing wrong with that in general: it's legal everywhere including the US, but that's something you should know).

    Not only that, FX Pulp is also limiting the profit you can make: no less than 35 pips and no more than 100 for major currencies, so that means you'll need to leave the position open until you are in that range = more chances to lose it all...

    Here's the full "promotion":

    The ZERO Account
    Day by day, we all witness growing investor awareness, and more literacy in financial markets, especially in the foreign exchange markets, or what people call the Forex
         markets, which proved to be one of the broadest, biggest and most profitable markets there is. That is why FXPULP, and since its inception, determined to be the pioneer in offering the best and the latest for its clients, wherever they are across the globe.The new revolutionary idea we are putting forth is very simple, ZERO Accounts, yes ZERO: ZERO Spread, ZERO Margin Requirements, ZERO Liquidation, And ZERO Commissions. What is ZERO Spread? Our basic philosophy in zero accounts is to reduce trading costs to the minimum, or shall we say to zero, and the spread was one of the main challenges that FXPULP experts faced. Taking the spreads to 3 pips, 2 or even 1 pip sounds good at first… but how about taking it completely down to zero??!! Yes imagine you are trading FOREX with ZERO SPREADThe main objective from taking the spread to as low as nothing is for you dear investor, enabling you to take advantage from every pip in the market, the profits start from the first pip, you don’t need some points to cover your spreads and others for the commissions, what you get is each and every pip the market gives. What are ZERO margin requirements? A margin is an amount held and blocked from your account equity in order to be able to place your trades in the market.Zero margin requirements means that no money will be held and blocked in your account as margin for the trades you place; and you will be able to invest in the financial market even if your account balance is less than what is required to cover your trades as margin. We will provide you with the margin you need to take as much positions as you want; you only have to pay to cover any losses resulting from the given trades, or get paid for the resulted profits. Normally; investors deposit money in the trading accounts which will be blocked for each trade according to the size, and the required margin, usually determined by the Leverage
         that the broker offers. The below table demonstrates the customary required margins:
    LeverageRequired Margin per Contract
    1:1001000$
    1:200500$
    1:400250$
    1:500200$
    FxPulp has provided investors a cutting edge revolutionary offer: unlimited leverage Do you know what does this mean?? It means you don’t have to deposit money to be able to trade or to avoid a margin call, all you have to do is to send the money you are willing to risk and that’s it, and you will be able to trade freely whatever product you want, with the size you want, and you don’t need a penny to cover it. Why ZERO Commissions??!! We at FXPULP believe that taking a good investment decision and make some money out of it is a very difficult thing to do in these markets; it needs a lot of reading, following up and analysis, which is why we believe that the profits you make are yours, and it’s not for anyone else to share with you, you bear all the risk, and that’s why you should enjoy all the profits…That was the idea when we eliminated all the costs, from commissions to swaps and hidden fees, we just swept them all away so you can take all your profits, each and every pip you make in this market is yours and yours only… What is ZERO liquidation? Liquidation means closing all open positions when your equity goes below a certain level…Your positions get liquidated when your margin level drops below 100% or 50% or any other level that brokers impose on you, which makes the chances hard for investors to benefit if the market moved back in their favor, and that’s why we offered to take this percentage to zero, so your positions stay open until your account equity drops down to zero, which will give you the full chance to benefit from your investment. The ZERO account will set your investments free and open new horizons, ones that didn’t even exist before in the FOREX Market.
    • Trade freely with no restrictions.
    • Your total freedom from Spreads.
    • Your total freedom from Margin Requirements.
    • Your total freedom from added Commissions and Costs.
    • Your total freedom from the fear of Liquidation.
    FxPulp Zero Accounts Trading Rules & Policies:
    1. Each client can open only One Zero Account with FxPulp.
    2. Spreads for Zero Accounts are as follows:
      • 0 spreads on all 7 Major Currencies.
      • Normal Spreads for Cross Currencies (As specified in FxPulp Products Specifications).
      • Normal Spreads for Precious Metals (As specified in FxPulp Products Specifications).
      • Normal Spreads for U.S Indices (As specified in FxPulp Products Specifications).
      • Normal Spreads for Energies (As specified in FxPulp Products Specifications).View our Products Table of Specifications…
    3. The required margin to open any trade on any of the products we offer is zero Dollars.
    4. Commissions and fees for zero accounts will be determined according to the table below:
      • Zero commissions and fees for all 7 major currencies.
      • Zero commissions and fees for Cross currencies.
      • Zero commissions and fees for Precious Metals.
      • $7 per standard contract fees for U.S Indices.
      • $7 per standard contract fees for Energies.
    5. There is no minimum initial deposit specified to open a zero account.
    6. The minimum allowed volume per each trade on Zero Accounts is 1 standard contract, or 1 standard lot (100,000 of base currency).
    7. The maximum balance in the zero account shall not by any chance exceed $5000, any amount above $5000 will be transferred directly to the clients’ normal trading account.Demonstration:
      • When a client applies for a Zero Account, FxPulp will open a zero account in addition to another normal Standard, Mini, or Micro account under the same name.
      • At any point, if the zero account balance - due to accumulated realized profits - exceeded $5000, the excess amount will be automatically transferred to the parallel account.
      • The client may continue trading on his/ her zero account normally, and at any time, he/ she may trade on the other parallel account as well, or request to withdraw the profits.
    8. All positions will be automatically closed and the account will be liquidated when the equity of the account reaches zero dollars.
    9. Pending orders and contingent orders (Stop Loss, Take Profit, Buy Stop, Sell Stop, Buy Limit, and Sell Limit orders) are not allowed on zero accounts. Traders can only place market orders (Instant Execution).
    10. Expert Advisor Program is not activated on zero accounts.
    11. Trailing Stops tool is not activated on zero accounts.
    12. Hedging is not allowed on zero accounts.
    13. All open positions will be closed at the end of each trading day. If the client did not close his/ her open positions during the trading day, they will be automatically closed (regardless to the age of the positions) at the end of every trading day according to the below table:
      CategoryDaily Closing (GMT)
      Major Currencies21:00
      Cross Currencies21:00
      Precious Metals (Gold)21:15
      Precious Metals (Silver)21:15
      U.S. Indices (Dow Jones)20:15
      U.S. Indices (NASDAQ)20:15
      U.S. Indices (S&P)20:15
      Energies (Crude Oil)21:15
      Energies (Natural Gas)21:15
    14. Minimum and maximum profits:
      • To be able to close an open position in your zero account, there is a minimum and a maximum number of profit points that will be applied.
      • If the client attempted to close an open position that has less number of profit points than the minimum specified, the position will not be closed and executed.
      • If the client closed an open position that has a larger number of profit points than the maximum specified, the position will be closed and only the maximum number of profit points will be realized.
      • Minimum and Maximum number of profit points for our financial instruments are as follows:
        CategoryMinimum ProfitsMaximum profit
        Major Currencies35 pips100 pips
        Cross Currencies35 pips100 pips
        Precious Metals (Gold)5 Dollars10 Dollars
        Precious Metals (Silver)10 cents60 cents
        U.S. Indices (Dow Jones)35 points100 points
        U.S. Indices (NASDAQ)10 Points35 Points
        U.S. Indices (S&P)5 Points15 Points
        Energies (Crude Oil)35 cents1 Dollar
        Energies (Natural Gas)8 Cents25 Cents
    15. Minimum and maximum losses:There are no minimum or maximum for the losses, you can close your trade at any price you want if the market goes against you, an option we set to make sure that you can limit your losses.
    16. Zero accounts shall fall under the same legal requirements as all other accounts, and are subject to all terms and conditions in the trading agreement with FxPulp.
    17. This policy is subject to change at any time without prior notice. The latest policy that exists on www.fxpulp.com – the official site of the company- at the moment, is the effective policy for zero accounts. The client is responsible for regularly reviewing this policy and rules.
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