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How safe is your investment at AxiTrader?

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  • How safe is your investment at AxiTrader?

    Hey guys,

    After much debate on the main FX Viper forum I thought it would be a good idea dedicate a thread to AxiTrader and in particular address the security of clients funds on deposit there.

    I've invited Tyson Calvo, our primary contact at AxiTrader to join the conversation so you can float any questions or concerns openly and he can respond.

    So far our experience dealing with AxiTrader, and in particular Tyson has been first class. He understands our business and shares a common goal - making money for our clients.

    Welcome to the forum Tyson!
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    Open an account at Blueberry Markets and save the $97/monthly fee.

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  • #2
    Hi Tyson,

    Are you able to elaborate on the question we've been asking? What differentiate you as a broker then many others? As most brokers have the same principal that all funds are in pooled accounts, any losses incurred by clients we all suffer the consequence as such... if you go solvent how are we meant to receive funds back? ASIC don't offer compensation for the loss like the FCA.

    Comment


    • #3
      Could you elaborate how the structure is and the requirements are to invest only 10% for clients with over 500k to invest.

      Comment


      • #4
        Hi Waleed,

        I'm not exactly sure on how that structure works but I believe if you look further into these statements that UK brokers offer around compensation due to loss of funds you will find it is bit of play on words that they use and a 'banking insurance' policy per bank account/client with that bank.

        UK brokers still pool client funds in a trust account in the brokers name NOT the clients name.

        So for example if the UK bank offers an insurance that they will cover up to $50,000 but the pooled trust account has 100 million dollars in client funds then it would not entirely mitigate financial risk as the trust account is in the brokers name NOT the clients name.

        I will post more of an elaborate reply relating to this subject below and of course am always happy to call direct for anyone who would prefer more of a personal chat.

        Tyson Calvo
        email: tcalvo@axitrader.com.au
        phone: +61 2 9965 5818

        Comment


        • #5
          Hi Guys, this is Tyson from AxiTrader. Nick's asked me to jump onto the forum to answer a few of your questions.

          In relation to the security of your funds ect I've been asked to post the following formal statement:


          All client funds are held in a segregated trust account with one of Australian largest banks, National Australia Bank, where client funds are separated from business funds at all times as per ASIC regulations. ASIC require regular reporting to ensure financial stability of the firm is maintained. If there is unforeseen situation where the firm was to become insolvent, ASIC would intervene during liquidation of a firm assets to assist in the returning of client funds. Furthermore as additional buffer, brokers must maintain a $1 million AUD level of regulation capital as a maintenance level to hold a Australian Financial Services License (AFSL) number.

          Moreover, “under the Australian Client Money Rules, we must hold your moneys on trust.”

          AxiTrader strength is evident as one of the largest Australian owned brokers with heavy investment into infrastructure for the benefit and protection of the client. A key example is while many global firms suffered significant losses after the Swiss National Bank (SNB) decision to remove the EURCHF floor, with a couple suffering large losses and becoming insolvent, AxiTrader survived through strict controls, robust infrastructure and well calculated risk management strategies and polices we have in place. Even after such significant event we are still growing and expanding our business in not only the main business centres, with offices in London and Dubai, but also emerging markets.

          “Over the past three to five years AxiTrader has reinvested a large percentage of its profits into infrastructure to better define and manage both customers’ and the firm’s risk, as well as working to excel in client execution with Axi’s counterparties.” - AxiCorp CEO Goran Drapac (http://www.axitrader.com/AxiTrader-G...Black-Thursday )

          Further information on AxiTrader product is available by reading the AxiTrader Product Disclosure Statement (PDS) which can be accessed through the AxiTrader website by clicking on the following link:
          http://www.axitrader.com/files/pdf/A...-Statement.pdf

          Also, ASIC has developed seven disclosure benchmarks for over-the-counter contracts for difference (OTC CFD’s) to assist retail investors understand the risks associated with these products, assess their potential benefits and decide whether investment in the products is suitable for them. To view the benchmarks, please click on the following link:
          http://www.axitrader.com/about-us/asic-benchmarks/

          If you have any other specific questions please let me know. I look forward to helping you get set up and trading with AxiTrader soon!
          Last edited by Tyson; 07-08-2015, 06:26 AM.

          Comment


          • #6
            Originally posted by Tyson View Post
            Hi Waleed,

            I'm not exactly sure on how that structure works but I believe if you look further into these statements that UK brokers offer around compensation due to loss of funds you will find it is bit of play on words that they use and a 'banking insurance' policy per bank account/client with that bank.

            UK brokers still pool client funds in a trust account in the brokers name NOT the clients name.

            So for example if the UK bank offers an insurance that they will cover up to $50,000 but the pooled trust account has 100 million dollars in client funds then it would not entirely mitigate financial risk as the trust account is in the brokers name NOT the clients name.

            I will post more of an elaborate reply relating to this subject below and of course am always happy to call direct for anyone who would prefer more of a personal chat.

            Tyson Calvo
            email: tcalvo@axitrader.com.au
            phone: +61 2 9965 5818
            Thanks Tyson for your answer, will await to hear more about this from you. If not/or unclear after your elaborated response I will have a chat with you.

            Cheers,

            Waleed

            Comment


            • #7
              Going by what I said earlier, every bank in the UK do compensate a sum if anything goes wrong, this is a nice safety net incase. Now I don't understand the technicals behind pooled or not within "banks" but if my bank is bankrupt I am covered by the Financial guys, whether they want to play with the words or not. They do have to pay.

              Anyhow let me know on the questions we raised. Also if an account is opened in the UK branch of Axitrader (AxiCorp) then we are covered by FCA.

              Thanks

              Comment


              • #8
                Hi Tyson,

                I received your response via email but it seems your post was deleted, to further verify, most people are aware it is only 50k or whatever protected but the topic is how safe is our funds with Axi, can you elaborate - would appreciate if you could answer my previous/original post.


                Many thanks

                Waleed

                Comment

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