Hi bb1
Well we’ll see how far my limited knowledge can answer your questions. And let me add I tried this not because I was worried about what ended up happening (the new gambling bill) as much as just trying to diversify my income streams a bit with the type of existing traffic I am receiving.
Therefor I signed up for this as well as backgammon, which has earned me more money, but even though backgammon is not classed as gambling you still cannot advertise it if the site allows backgammon for money play. And there is a double whammy in the UK. You can advertise gambling sites in the UK but you can’t promote backgammon because it is not classed as gambling so if you link to a gambling site you are ineligible! Who comes up with these rules?
Anyway I’m way off topic. The revenue figures from the chart on the site were not even there when I signed up. They redid their site recently and created % incentives which now goes from 10% to 30%. And yes the $5,000. is based on their revenues. BUT, do not compare it to stock market fees just for 1 main reason. Very, very few people buy stock with the intent of reselling later in the day or over a very short term like as is the case with the forex market. This is because most players are margin trading (like options on stocks only a shorter time frame).
“It’s estimated that somewhere between 70% and 90% of the forex market is ‘speculative’ trading.”
“Approximately 80% of all currency transactions last a period of seven days or less, while more than 40% last fewer than two days.”
Plus you need to remember the daily forex turnover is about 3 trillion in US dollars. I think combined those numbers amount to a lot of trades per month per client on average. What the average would be I have no idea.
Now on another of your questions I had emailed them about a negative balance I had one day and this is the part of the email I got in response:
“In reply to your question about the negative revenue balance, the balance indicates the amount of revenue generated. If all your traders are closing their deals with a profit then this amount will drop and may fall below zero. In such a case you will receive zero commission that month (we do not ask for you to pay us anything) and your next month will begin from that negative balance. Please do not be alarmed by this – revenue rises and falls constantly!”
So this is my ‘personal’ opinion on how this will work over time….Like a casino.
The players or clients whatever you want to call them are mostly out to make a big buck. They win some and lose some but in the end the vast majority lose trying to make that big killing. Because like I said in the subject of this topic, this is ‘what I call legal gambling’. It’s like a 2 horse race but instead of betting on the final outcome the clients are basically betting on every position of the 2 horses relative to each other all the way around the track which seems to be endless.
But hang tough and I’ll see if I can get these questions answered accurately.