ECM Group is an online trading brokerage (as defined below) service company, a Financial Service Provider licensed in Vanuatu (the “Company”). This Document is provided for your (the “Trader”) information and attention:
Prior to applying for an account the Client should consider carefully whether trading in the Foreign Exchange Markets and CFD’s etc. offered by the Company, (Hereinafter: “Forex Trading“) is suitable for him in the light of his circumstances and financial resources. Trading in some Financial Instruments entails the use of “leverage”. In considering whether to engage in this form of trading, the Client should be aware of the following:
Each trader is required to deposit collateral with the Company, which is earmarked to cover certain losses sustained in the Trader’s account or transaction costs sustained by the Trader. Additional costs may also be sustained by the Trader which is outlined in the Trader’s Agreement.
1. Trading In Forex Markets Is Considered Risky And Speculative. Forex trading carries a high degree of risk. The leverage available in forex trading means that a relatively small movement can lead to a proportionately much larger movement in the size of any loss or profit. It can work against you as well as for you, and lead to large losses as well as gains
Forex trading markets characterized as high volatile markets, therefore in involves high risk, and may cause high loses to the deposit funds, and in a short period of time. The company is and will, in no way, responsible to the trades executed or not executed, by the client.
10. Traders Must Know The Proper Procedures For Changing Or Canceling Existing Orders. In a fast moving market, or otherwise, attempts at canceling an existing order and replacing it with a new one may result in an execution of duplicate orders. In such situations, Traders are wholly responsible for both executions and any resulting losses.
11. Company Makes No Warranty Regarding the Effectiveness, Accuracy or Efficiency of the Trading Platforms. From time to time, Traders may have difficulty accessing their account data due to a possible myriad of technical problems. Colmex makes no warranty of merchantability, no warranty of fitness for a particular purpose, and no other warranty of any kind, express or implied, regarding this service, data or information provided thereby, or any aspect regarding the order entry or execution services, except as required by applicable law, regarding possible damages, including, but not limited to, lost profits, trading losses or damages that result from reliance on inaccurate data, or delay or loss of access to customer account execution services.
12. Pay Attention to Your Account Statements. It is very important for you to reconcile your account on a daily basis. Your review should include confirmations, and monthly statements. Any suspected discrepancies should be immediately brought to Company’s attention. All trade confirmations and monthly statements will be deemed accepted by you if not complained of upon receipt.
13. Exploit Your Opportunity for Success. To enhance your opportunity for success, you should consider trading to be a profession that will require you to be available each and every day during market hours. Even with such commitment, there is no guarantee that you will be successful in implementing your investment/trading strategy.
14. Electronic Trading Requires Some Degree of Sophistication. Persons who are relatively new to electronic trading should strictly limit both the number of trades they do and the size of their trades to reduce the risk of large dollar losses during the learning process. Nearly all persons who are new to electronic trading suffer losses. Only persons who can sustain substantial losses during the learning process should attempt to engage in such electronic trading. The length of time required developing the requisite skill and discipline necessary to trade successfully varies with different individuals.
15. The Company is not a Registered Broker-dealer or Investment Advisor. The trading services provided are intended to provide timely information to professional and non-professional traders on market developments and other public events and by providing a mechanism for execution of trades. Nothing in this service constitutes investment advice or a recommendation by the Company or its affiliates to buy, sell or hold a particular security, financial product or instrument discussed therein or the suitability for making any such investment. The Company is neither registered investment advisors nor broker dealers.
16. The Company Does Not Absorb Trader’s Losses. Traders are required to be responsible for all losses sustained in their accounts, which on occasion, may exceed the required deposit.
17. Possible Lack of Liquidity. Unless otherwise specifically published by the Company, the Company does not warrant that it will be able to stop-loss losing trades and will not be subjected to any liability.
18. Redemptions and Distributions May Only be made if there is Available Cash or Equity. Pursuant to the Trading Agreement upon the Trader’s request and subject to available funds, the Company shall distribute back to the Trader, any part of the Trader’s Equity, not securing any trade. Available funds will depend upon the financial condition of the Company’s Trading Account, as well as the financial condition of the Trader’s Account. Thus, in the event the Trading Account has suffered losses unrelated to the performance of the Trader’s Account, the Company may be unable to satisfy redemption requests or request for distribution of cash or securities. The Company is Not Covered by Insurance in Case of Misconduct by Our Agents or in case of Insolvency.
19. Cease of commerce - Due to the fact that commerce system is based, amongst others, on networks for the exchange of information and the Internet, the commerce or any part thereof may be ceased and/or disrupted and etc., without prior notice or for reasons which are not under the Company’s control. In a situation in which commerce is disrupted, the Company shall be permitted to close all open transactions made by the customer, without prior notice, inasmuch as possible in fair prices reflecting the market condition at that moment. You shall have no claim, demand or right for indemnification in such an event, with respect to any damage claims that were caused due to the cease of commerce and/or due to transactions performed or not performed.
In general, in the event of problems with the information exchange network, the internet etc., the Company shall be entitled to stop commerce at its sole and exclusive disclosure, without an obligation to explain or any other obligation, except for giving notice regarding the problem and the ceasing of commerce. In such an event, the Company shall be entitled to stop and/or enable the holding of the positions in the Customer’s accounts until their expiration. It is hereby clarified that since the information is received from international information providers who are a third party, it is impossible for the Company to be responsible for the updating and accuracy of the information appearing in the website and or trading platform and its conformance with the updating pace of the international market. In the event that an error in transmission of the information becomes known, the Company may stop the posting of this information and posing of a notice in the system.
20. Force majeure – The Company shall not bear responsibility to any harm or any form which shall be caused to the Customer in the event that such harm is the result of a force majeure and any outside event which is not in the control of the Company which influences commerce in the website. The Company shall not bear any responsibility for any delay in communications and/or failure in the internet, including, without limitation, computer crashes or any other technical failure, whether caused by the telephone companies and various telecommunication lines, the ISP computers, the Company’s computers or the Customer’s Computers.
21. The Trader’s Deposit or Equity is not segregated within the Trading Account. This is in part due to the fact that it is the Company, and not the Trader, which maintains an omnibus account with the broker-dealer and it is the Company that consequently is the party to each trade even though the trade is for the benefit of a particular Trader.
By agreeing to trade with the Company, you represent that either you understand the English language or you have had someone independent of the Company read and interpret any such account opening documents for you prior to the execution of the actions which will cause the Agreement to be in effect.
You further acknowledge that you are investing only risk capital in this account, that all trades are conducted on an unsolicited basis and that you are not relying on any information, advice, be it financial, legal, tax or otherwise, or representation by Company’s agent thereof. Furthermore, Company accepts any and all such orders only on the understanding that you are a knowledgeable and sophisticated investor who has the risk tolerance necessary to invest pursuant to a speculative trading strategy; if Company is wrong in this understanding, then do not use this service.