NOTICE TO TRADERS
This
Client Agreement Is a Legal Contract, Please Read It Carefully.
This
is a legal contract between WealthTrade FX, LTD , a limited liability
corporation organized under the laws of the Republic of Seychelles,
its successors and assigns, and the party (or parties) executing this
document.
In connection with opening an account to
speculate and/or purchase and/or sell cash or spot foreign currency
(hereinafter referred to as "Currency" or "Spot"))
through the OTC foreign exchange markets (hereinafter referred to as
"OTCFX") with WealthTrade FX, LTD, Trader acknowledges that
it has been advised and understands the following factors concerning
trading in leveraged OTCFX, in addition to those contained in the
Risk Disclosure Statement which has been provided to Trader. More
specifically, the terms OTCFX and Spot as used herein shall mean the
purchase or sale of a foreign currency in such amounts and under such
conditions that the parties may negotiate.
1. There are no
guarantees to the credit worthiness of the counterparty of your Spot
position. Every attempt has been made to deal with reputable
creditworthy banks/clearing houses. Also, there may be certain cases
in which trading liquidity decreases causing trading in a certain
currency to cease, thereby preventing the liquidation of an adverse
position that may result in a substantial financial loss.
2.
Trading in OTCFX is suitable only for those sophisticated
institutions or participants financially able to withstand losses
that may substantially exceed the value of margins or deposits. OTCFX
accounts are not available through WealthTrade FX, LTD to
non-sophisticated participants.
3. Trader acknowledges that
the purchase or sale of a Currency always includes delivery to the
extent that Trader's account shall be credited with each Spot
transaction.
4. WealthTrade FX, LTD's margin policies and/or
the policies of those banks/clearing houses through which trades are
executed may require that additional funds be provided to properly
margin Trader's account and that Trader is obligated to immediately
meet such margin requirements. Failure to meet requirements may
result in the liquidation of any open positions with a resultant
loss. WealthTrade FX, LTD also reserves the right to refuse to accept
any order or guarantee a market in which to offset.
5. OTCFX
business is not traded on an organized exchange and therefore does
not require open-outcry. Even though quotations or prices are
afforded by many computer-based component systems, the quotations and
prices may vary due to market liquidity.
Disclaimers:
a)
Internet or Wireless failures:
Since WealthTrade FX, LTD does not
control signal power, its reception or routing via Internet,
configuration of your equipment or reliability of its connection, we
cannot be responsible for communication failures, distortions or
delays when trading on-line (via Internet or Mobile services).
b)
Market risks and on-line trading:
Trading currencies involves
substantial risk that is not suitable for everyone. See Trader
Agreement for more detailed description of risks. Trading on-line, no
matter how convenient or efficient, does not necessarily reduce risks
associated with currency trading.
c) Password protection:
The
Trader is obligated to keep passwords secret and ensure that third
parties do not obtain access to the trading facilities. The Trader
will be liable to WealthTrade FX, LTD for trades executed by means of
the Trader's password even if such use may be wrongful.
d)
Quoting and Execution Errors:
Should quoting and/or execution
errors occur, which may include, but are not limited to, a dealer's
mistype of a quote, a quote or trade which is not representative of
fair market prices, an erroneous price quote from a Trader, such as
but not limited to a wrong big figure quote or an erroneous quote due
to failure of hardware, software or communication lines or systems
and/or inaccurate external data feeds provided by third-party
vendors, WealthTrade FX, LTD will not be liable for the resulting
errors in account balances. In addition, orders must be placed
allowing sufficient time to execute, as well as, sufficient time for
the system to calculate necessary margin requirements. The execution
of orders placed too close to prices, which would trigger other
orders (regardless of order type) or a margin call, cannot be
guaranteed. WealthTrade FX, LTD will not be liable for the resulting
margin call, resulting balance, and/or positions in the account due
to the system not having been allowed sufficient time to execute
and/or calculate accordingly. The foregoing list is not meant to be
exhaustive and in the event of a quoting or execution error,
WealthTrade FX, LTD reserves the right to make the necessary
corrections or adjustments on the account involved. Any dispute
arising from such quoting or execution errors will be resolved by
WealthTrade FX, LTD in its sole and absolute discretion. Trader
agrees to indemnify and hold WealthTrade FX, LTD harmless from all
damages or liability as a result of the foregoing.
e)
Arbitrage:
Internet, connectivity delays, and price feed errors
sometimes create a situation where the prices displayed on
WealthTrade FX, LTD's Trading Station and any other licensed trading
platforms (hereinafter referred to collectively as "WealthTrade
FX, LTD Trading Station"), do not accurately reflect the market
rates. The concept of arbitrage and "scalping", or taking
advantage of these Internet delays, cannot exist in an OTC market
where the client is buying or selling directly from the market maker.
WealthTrade FX, LTD does not permit the practice of arbitrage on the
WealthTrade FX, LTD Trading Station. Transactions that rely on price
latency arbitrage opportunities may be revoked. WealthTrade FX, LTD
reserves the right to make the necessary corrections or adjustments
on the account involved. Accounts that rely on arbitrage strategies
may at WealthTrade FX, LTD's sole discretion be subject to dealer
intervention and dealer approval of any orders and/or termination of
trader's account. Any dispute arising from such arbitrage and/or
manipulation will be resolved by WealthTrade FX, LTD in its sole and
absolute discretion. WealthTrade FX, LTD reserves the right to
withhold withdrawals until such matters are resolved. Any action or
resolution stated herein shall not waive or prejudice any rights or
remedies which WealthTrade FX, LTD may have against you, your company
and its officers, all of which are expressly reserved.
f)
Price, Execution, and Platform Manipulation:
WealthTrade FX, LTD
strictly forbids any form of manipulation of its prices, execution,
and trading platforms. WealthTrade FX, LTD reserves the right to
investigate and review any account WealthTrade FX, LTD suspects of
manipulation and withhold funds suspected of being derived from such
activity. WealthTrade FX, LTD reserves the right to make the
necessary corrections or adjustments on the account involved.
Accounts that are suspected of manipulation may at WealthTrade FX,
LTD's sole discretion be subject to dealer intervention and dealer
approval of any orders and/or termination of trader's account. Any
dispute arising from such arbitrage and/or manipulation will be
resolved by WealthTrade FX, LTD in its sole and absolute discretion.
WealthTrade FX, LTD at its own discretion may report such incidents
to any relevant regulatory and law enforcement authority. Any action
or resolution stated herein shall not waive or prejudice any rights
or remedies which WealthTrade FX, LTD may have against you, your
company and its officers, all of which are expressly reserved.
g)
Trade Execution:
All accounts of Trader will be set to either the
"No Dealing Desk" ("NDD") execution or "Dealing
Desk" ("DD") execution in WealthTrade FX, LTD's sole
and absolute discretion. Additionally, WealthTrade FX, LTD
exclusively reserves the right to transfer accounts from one option
to the other at any time. Traders on both DD and NDD execution may
experience widened spreads and slippage under certain market
conditions including, however not limited to, when the trading desk
is closed, around fundamental announcements, and at times of extreme
market volatility. The trading desk is closed 4:00 PM EST Friday
afternoon through 5:15 PM EST Sunday afternoon. Market, stop, and
stop entry orders due for execution during this time will be filled
at the opening rate when the trading desk resumes quoting. Limit and
limit entry orders due for execution during this time will be filled
at the price requested by Trader when the trading desk resumes
quoting. NDD market, stop and stop entry orders are executed at the
next best market-price available. All NDD orders may involve
circumstances under which the full order gets executed, and other
circumstances under which only part, or perhaps even none, of the
order gets executed. The NDD setting offers Trader the ability to
trade directly on prices that are streaming from the multiple banks
and financial institutions that provide liquidity for WealthTrade FX,
LTD. All of the above information is subject to change and/or
suspension based upon available liquidity or the lack thereof.
All
orders are subject to final approval by WealthTrade FX, LTD and may
be rejected at any time. WealthTrade FX, LTD is compensated through
the bid-ask spread regardless of whether an account is set to NDD or
DD execution. In the event that WealthTrade FX, LTD's liquidity
providers are unable to provide such liquidity, then Trader may also
lose access to streaming prices and be unable to place trades during
this time. When such liquidity lapses occur, Trader agrees to
indemnify WealthTrade FX, LTD for any and all losses that may occur
due to said volatility and/or movement in the market.
6. In
OTCFX, firms are not restricted to effect exchange transactions. The
firm with which you deal, such as WealthTrade FX, LTD, may be acting
as your counterparty to the transaction. It may be difficult or
impossible to liquidate an existing position, to assess the value, to
determine a fair price or to assess the exposure to risk. For these
reasons, these transactions may involve increased risks. Off-exchange
transactions may be less regulated or subject to a separate
regulatory regime. Before you undertake such transactions, you should
familiarize yourself with applicable rules and attendant risks.
7.
In the event that Trader grants trading authority or control over
Trader's account to a third party (Trading Agent), whether on a
discretionary or non-discretionary basis, WealthTrade FX, LTD shall
in no way be responsible for reviewing Trader's choice of such
Trading Agent or for making any recommendations with respect thereto.
WealthTrade FX, LTD makes no representations or warranties concerning
any Trading Agent; WealthTrade FX, LTD shall not be responsible for
any loss to Trader occasioned by the actions of the Trading Agent;
and WealthTrade FX, LTD does not, by implication or otherwise endorse
or approve of the operating methods of the Trading Agent. If Trader
gives the Trading Agent authority to exercise any of its rights over
it account, Trader does so at his own risk.
8. WealthTrade FX,
LTD does not control, and cannot endorse or vouch for the accuracy or
completeness of any information or advice Trader may have received or
may receive in the future from Referring Broker (hereby defined as
the agent(s) that referred Client to WealthTrade FX, LTD, and
includes such referring broker, its employees, subsidiaries,
sub-agents, referring agent(s) and affiliates) (see section Referral
Disclosure below) or from any other person not employed by
WealthTrade FX, LTD regarding Forex trading or the risks involved in
such trading. If Referring Broker or any other third party provides
Trader with information or advice regarding Forex trading,
WealthTrade FX, LTD shall in no way be responsible for any loss to
Trader resulting from Trader's use of such information or advice.
Trader understands that Referring Broker and many third party vendors
of trading systems, courses, programs, research or recommendations
may or may not be regulated by a government agency.
REFERRAL DISCLOSURE
WEALTHTRADE FX, LTD AND
REFERRING BROKER ARE WHOLLY SEPARATE AND INDEPENDENT FROM ONE
ANOTHER. THE CLIENT AGREEMENT BETWEEN FXCM AND REFERRING BROKER DOES
NOT ESTABLISH A JOINT VENTURE OR PARTNERSHIP AND REFERRING BROKER IS
NOT AN AGENT OR EMPLOYEE OF WEALTHTRADE FX, LTD.
1.
WealthTrade FX, LTD does not control, and cannot endorse or vouch for
the accuracy or completeness of any information or advice Client may
have received or may receive in the future from Referring Broker or
from any other person not employed by WealthTrade FX, LTD regarding
foreign currency or exchange ("Forex") trading or the risks
involved in such trading.
2. WealthTrade FX, LTD provides risk
disclosure information to all new Clients when they open accounts.
Client should read that information carefully, and should not rely on
any information to the contrary from any other source.
3.
Client acknowledges that no promises have been made by WealthTrade
FX, LTD or any individual associated with WealthTrade FX, LTD
regarding future profits or losses in Client's account. Client
understands that Forex trading is very risky, and that many people
lose money trading.
4. If Referring Broker or any other third
party provides Client with information or advice regarding Forex
trading, WealthTrade FX, LTD shall in no way be responsible for any
loss to Client resulting from Client's use of such information or
advice.
5. To the extent Client has previously been led to
believe or believes that utilizing any third party trading system,
course, program, research or recommendations provided by Referring
Broker or any other third party will result in trading profits,
Client hereby acknowledges, agrees and understands that all Forex
trading, including trading done pursuant to a system, course,
program, research or recommendations of Referring Broker or another
third party involves a substantial risk of loss. In addition, Client
hereby acknowledges, agrees and understands that the use of a trading
system, course, program, research or recommendations of Referring
Broker or another third party will not necessarily result in profits,
avoid losses or limit losses.
6. Client understands that
Referring Broker and many third party vendors of trading systems,
courses, programs, research or recommendations are not regulated by a
government agency.
7. Because the risk factor is high in
foreign currency transactions trading, only genuine "risk"
funds should be used in such trading. If Client does not have the
extra capital the Client can afford to lose, Client should not trade
in the foreign currency markets.
8. Client understands and
acknowledges that WealthTrade FX, LTD may compensate Referring Broker
for introducing Client to WealthTrade FX, LTD and that such
compensation may be on a per-trade basis or other basis. Such
compensation to the Referring Broker may require the Client to incur
a mark-up, above and beyond the ordinary spread generally provided by
WealthTrade FX, LTD. Further, the Client has a right to be informed
of the precise nature of such remuneration.
9. WealthTrade FX,
LTD does not endorse or vouch for the services provided by the
Referring Broker. Since Referring Broker is not an employee or agent
of WealthTrade FX, LTD, it is the account holder's responsibility to
perform necessary due diligence on the Referring Broker prior to
using any of their services.
10. Client understands and agrees
that if Client's account with WealthTrade FX, LTD is introduced by
Referring Broker that Referring Broker may be provided access to
certain personal information about Client as well as certain
information concerning trading activity in Client's WealthTrade FX,
LTD account. Referring Broker shall not have the right to enter into
any trades on Client's WealthTrade FX, LTD account unless
specifically authorized by Client through execution of a limited
power of attorney granting Referring Broker authority to make trading
decisions for Client's account.
Should you have any questions
regarding the risks of trading in foreign currency, please contact
your account representative.