What's Open Book/Market Leader being discussed here? I was thinking of etoros Open Book to be honest.

Megraweb,

Why you call it Open Book.

It's called Managed Book. I love the idea. It means you pay the trader only if you make money.

Good job Fxstat.

Originally posted by nida

Megraweb,

Why you call it Open Book.

It's called Managed Book. I love the idea. It means you pay the trader only if you make money.

Good job Fxstat.

It may be good in that respect, but they don't compenste you when they loose your money.

Originally posted by leebut

I like the idea of this in principle, but the fees are a one way street. Traders that take teh signals and win have to pay quite a big fee (20%) detailed in the e-mailed example, but I doubt they pay back a losing fee to the client. Seems to be a lucrative, risk-free, one sided set-up to me. For someone to give recommendations and be responsible for the profits but be in denial when there's a loss is not good for the client. They should perhaps pay a proportion of the losses back to the client. But then I suppose that's how it's always been. The one trading other's money is never at risk.

Hi Leebut, 

We really gave a lot of thought to the commission part of this project and carefully weighted all the options to prove ManagedBook is advantageous for all the parties involved. 

At the base of this product was the wish to make our clients feel more comfortable with our service. We analyzed some of their requests and saw that there was a demand for a higher protection of their account balance in case of minor losses. We actually took into consideration your alternative also - a "damage" fee, if we can call it like that, in case our clients end their month with losses.

On the other hand, we position ourselves as an interface between signal followers (Investors) and signal providers (Market Leaders), so we have to put ourselves always in the place of both these parties. We cannot favour any of them. We are extremely cautious when approving signal providers and test their accounts in detail, but at the same time we know that it is impossible to have a trader with a continuous positive performance. We know that trading has its ups and downs and we actually become suspicious when it is not like that. We want our signal providers to perform at their best level and never use unethical or risky tactics for one single month of profits. We know that any trader, signal provider or not, will want to make profits out of his investment and in case he doesn't manage to do it in one month, he will surely strive for better results in the next one. Because in the end, he is trading with his own money in that account, a huge difference than trading on a demo account - this is a basic rule for all the followers and providers that use FXStat. 

In the end, don't forget that forex trading, like any other investment, has its own risk - you either lose or win. And ManagedBook eliminates exactly the risk of losing for our signal followers, while signal providers need to manage it. And we chose them exactly because so far they have managed their risk well.  

I hope I answered your question. If there is something else unclear, don't hesitate to write us. 

The FXStat Team

Originally posted by leebut

I like the idea of this in principle, but the fees are a one way street. Traders that take teh signals and win have to pay quite a big fee (20%) detailed in the e-mailed example, but I doubt they pay back a losing fee to the client. Seems to be a lucrative, risk-free, one sided set-up to me. For someone to give recommendations and be responsible for the profits but be in denial when there's a loss is not good for the client. They should perhaps pay a proportion of the losses back to the client. But then I suppose that's how it's always been. The one trading other's money is never at risk.

Yes, I agree on the point that there should be some compensation if signal follower loose. But as fxstat admin explained that loosing is the part of trading. We all know that. Moreover fxstat has adopted very strict verification procedure for signal providers. So signal followers feel comfortable when they start following a provider from fxstat.

There are other services too operating in the same way and charging fee if we make profit. but some of them are charging high fee bcoz of their "brand name". Some of them are difficult in setup and even difficult to understand.There was a thread about different websites providing services similar to managed book. But in the end all users agree that fxstat service is cheapest of all.

A practical example can give a better idea. So I will soon be using managedbook service. I will let all of you people know about its results.

this is really cool and like the idea of pay only what you get and removing the risk of "losing" part. hope I can be one of the guys providing signals someday....just started with fxstat just couple of days ago.

Thank you FXSTAT. @ richardfx. You cannot remove the risk of losing. Regardless of whose signals you follow there WILL be losses. No equity curve is without drawdowns. NO ONE can guarantee risk-free trading beyond a live account or risking someone elses money. I think it's VERY important to know how many lots they place on their trades and what the stops and limits are. You could follow someone who trades 10 lots and 300 PIPs of risk. You'd stand a good chance of getting a margin call on one trade. I still think it's better to learn a strategy and place your own trades than to keep paying 20% an never learn.

All the best to those that follow.

Originally posted by uniquetrader

 

Originally posted by leebut

 I like the way fxstat managedbook collects fee which is based purely on the principle "pay % of what u get".

But as fxstat admin explained that loosing is the part of trading. We all know that. Moreover fxstat has adopted very strict verification procedure for signal providers. So signal followers feel comfortable when they start following a provider from fxstat.

1.) Not everyone can become a signal provider on this site. Only consistent traders with minimal drawdown. However, risk is often hidden behind closed doors that we can not forcecast from a traders statistics. 

2.) Signal provider has money on the table and their reputation. This isn't your typical signal provider site. 

3.) We only pay if the system is profitable. No monthly fees, No commission, no spread markup, no 2% capital management fee. Its clean and simple. 

Originally posted by IPNDASNO

1.) Not everyone can become a signal provider on this site. Only consistent traders with minimal drawdown. However, risk is often hidden behind closed doors that we can not forcecast from a traders statistics. 

hoping to be one of them, someday hehe

I got it already. Thanks that I read the blog lol... At first I thought it's a different program or as general term; not a name of the new service! Apology for being naive!