Welcome to The Collective FX GLOBAL - Now accepting new Members!
How often have you seen the words 'by traders, for traders' on a Forex website? Well, they say imitation is the best form of flattery, so we are very flattered!
The Collective FX Global came about when a group of frustrated Forex traders decided that they wanted to create the ideal place to trade. It seems this proved to be a popular concept, as we soon had other Forex traders beating down our door to trade with us.
To this day, The Collective FX Global has remained a 'members club' for Forex traders.
We do things a little diferently, but our way works!
Since April 2009 we have been working towards this goal. Today we have achieved it.
From 1st May 2012 we are able to offer a flat monthly fee of $147 to all Members of The Collective FX GLOBAL.
No more PLANS. Everyone pays the same.
This is truely the ULTIMATE way to trade.
About Us - How it all started
In April 2009 a group of frustrated traders created The Collective FX. We created it for one specific purpose; to serve our personal trading needs. There was nothing altruistic about it; we simply needed to elevate our status to allow us to deal with the major liquidity providers.
Our initial intention was to keep The Collective as a closed group, so allowing other non related traders to join us was really just luck and circumstances. As with all these things, the existence of The Collective got out onto the forums and we were plagued by enquiries as to how to become a member of our group. This flummoxed us at first, as we just could not believe that traders who did not know us wanted to be part of our group!
The regulations at the time were ambiguous to say the least, but on sound (“very expensive”) legal advice we determined that we could indeed take in new members and decided to go with this, as it would accelerate our goals.
It didn’t take long for several other ‘competitive’ entities to pop up and funnily enough they all had the same message ‘traders helping traders’, ‘for traders by traders’, ‘we are traders just like you’. Well, they say imitation is the best form of flattery, so we are very flattered!
Of course though the Forex World was a completely different place back then and pretty much anyone could replicate our model and they did, albeit badly. Today it is a different story. Regulation has forced many out of business; other have been caught with their proverbial ‘hand in the cookie jar’; others still have suffered from their cliental voting with their feet and no longer accepting being cheated and disadvantaged.
In the early days we asked potential new members the hardest question you can ever ask anyone; “Will you please trust us?” That truly is the hardest thing to overcome. Yet some brave souls took the leap of faith and joined us based on nothing more than pure gut instinct. Those guys paved the way and to those guys and girls we thank you, as it is your trust that proved to us that there was a true place in the Forex World for The Collective.
Every day since we have done our utmost to repay that debt of trust and to this day you will never ever hear a story that The Collective has EVER cheated, scammed, or disadvantaged anyone and to that we stand true.
Thank you all.
The Collective FX GLOBAL - Regulation
When The Collective FX was created it was an unregulated entity. Times changed and the ability to be unregulated was taken away. Regardless of whether the regulators could actually enforce any actions on unregulated entities or not they certainly had power over their own regulated members and other such organisations such as they banks and liquidity providers. Thus they controlled the flow of liquidity and without liquidity there is no ability to conduct business, unless of course the broker in question was market making with a dealing desk but that is a whole different can of worms.
In order to safe guard what we had and what we wanted to do in the future we did two things.
Firstly we put in an application for a European regulated license. This license would allow us to conduct business in a fully regulated, but not stifled, manner with FULL European licensed credentials. Indeed the license that we applied for was a pure STP license only meaning that we could ONLY pass trades to liquidity providers and not ever act as a market maker ourselves.
Contrast that with the licenses held elsewhere in the World and the disclaimer that those licensees have to publish:
“YOUR DEALER IS YOUR TRADING PARTNER WHICH IS A DIRECT CONFLICT OF INTEREST. WHEN YOU SELL, THE DEALER IS THE BUYER. WHEN YOU BUY, THE DEALER IS THE SELLER. As a result, when you lose money trading, your dealer is making money on such trades, in addition to any fees, commissions, or spreads the dealer may charge.”
Our European license has recently been granted and the next step is to apply to the FSA in the UK to gain that license too. We don’t ‘need’ this license but it certainly adds a degree of credibility to our status. That process is underway. Hopefully, all things being equal, we shall migrate to the new European company later in the year, maybe early next year.
The new company is going through a name change and won’t be called “The Collective” anymore but The Collective and what it is and what it stands for will always remain.
Secondly, we took an interim measure. Gaining the European license was a long, slow process and to ensure that we are obeying all of the rules and acting 100% as we are supposed to we have achieved full licensing in Belize, a small Central American Country who gained independence from the British in 1981. Given their British heritage, English speaking and their international banking facilities then this proved to be a great interim measure until we fully roll into our European entity.
So in summary we now have our European license with an FSA process having been started. In the mean time we are a fully licensed to trade in Forex and to take client deposits using our Belize entity.
So, everything we do from here on is absolutely in accordance with the rules and regulations of the regulator in question.
We shall continue to offer hedging; 100:1 leverage etc. and it is all 100% in accordance with the rules there is absolutely zero ambiguity. If we are doing it then we are allowed to be doing it.
Hopefully that can give some of you more peace of mind.
Non-Commercial - The Collective FX GLOBAL exists to serve us as traders
As you have read elsewhere on our site we never intended nor wanted for The Collective to be ‘commercial’. The thought of having to employ and manage staff is something that we, the creators, have all done in the past and it is something that none of us really ever want to do again.
If you need someone on the end of the phone to hold your hand and to give you lots of warm and cosy feelings then we aren’t the place for you. Equally if you want a sales person to call you ten times a day because you just registered a demo account then that’s not going to happen here either.
The bottom line is that this costs money and requires staff. Until we move to Europe where we have a staffing obligation as part of our license then staff are NOT what we want. Therefore please don’t expect us to behave in a commercial manner and don’t whatever you do treat us like you may treat a commercial broker. That doesn’t sit well with us and indeed the only bad comments you’ll ever read about us are due to traders not liking the curt response they get when they decide to forget their manners when contacting us. Remember we are a members club and we expect everyone to respect each other.
Customer Service and Support - we treat every member as we would wish to be treated ourselves
Despite what we have written in the ‘Non Commercial’ section we do actually pride ourselves on the way we support our members. We never leave anything hanging and always respond as fast as humanly possible, taking into account we have traders in all time zones.
We use email (and contact forms) as our main media for communication, simply because it is the most expeditious way to handle enquiries. It also means we have a history of our communications with our members, and they have a history of the problem and the solution.
Whilst other brokers may claim to be traders we actually are traders and thus we truly understand the way that trading works.
There is ALWAYS an answer to every question, it’s just a matter of finding it. For sure we can find the answer and our members know first hand that nothing gets missed. Not wishing to blow our own trumpet too much but from a technical trading perspective we have more and better educated resource than the largest broker could possibly hope to have and for one key reason; every day we get our hands dirty trading.
When our members contact us the probability of a situation arising that we haven’t personally seen before is tiny. Contrast that with the skill set of the salesman that jumps on you two minutes after your demo was registered. Or the canned response answer copied out of a script. Or the tech support department that auto replies saying that you’ll have a response with 48 hours.....
There is nothing more important to us that the integrity of our trading environment and thus our members benefit from that whether that be by design or circumstance.
We utilise the latest and best technology, yet even with that problems can still happen. Having problems is to be expected with any technological scenario the measure of the support though is how those problems are dealt with.
We have monitoring systems in place to ensure that trades are executing and that quotes are flowing. We constantly monitor our servers and know immediately is any problems exist, long before any of our members should ever experience problems.
Our monitoring systems generate email and SMS alerts to several different people all of whom are tasked to immediately investigate. Should we find a problem without immediate resolution then we ensure that our members are immediately contacted with a status and then continually sent updates until the problem is resolved. Our members NEVER have to worry about what is going on and when the problem may be resolved. Information is power and we ensure that our members are empowered at all times.
Coupled with the above our Emergency Procedure ensures that our members can protect themselves from market exposure even if they’ve no access to their trading platform as we are always able to call trades into our liquidity providers’ trade desks.
No matter what the problem, if our members have an ‘Emergency’ then we have a number they can dial to close out any trades and limit their risk.
Our real time monitoring and alerting coupled with our Emergency Procedure ensures that we all benefit from the most reliable and robust trading platform experience possible.
Sharing Knowledge - become part of a group of experienced traders and share knowledge and experience
As we have proven many times, and as our existing members will testify, our personal trading knowledge and insights are extremely broad, diverse and deep. As such our new site will have articles posted about many different topics that share our knowledge.
We’ve gained our personal knowledge primarily from the Futures markets before delving into the Forex World and as such the way the Forex World works in comparison to a centralised exchange driven market is quite eye opening.
As time progresses we willl be posting many articles that address the diverse issues traders encounter and hopefully we’ll be able to post some articles from our members too.
We aren’t arrogant enough to believe that we know it all, but for sure we have 80% covered.
Amongst our members we have experienced old timers, high tech auto traders, journeyman traders and complete newbies, so if our members can help plug the 20% knowledge gap then we’ll happily publish that too.
Our new, interactive tool to allow you to meet and communicate with other traders will be launched shortly.
Working Together - as a true 'collective' we work together for the benefit of everyone
The Collective is so appropriately named. Whilst we the creators of The Collective are the ones running the show, so to speak, it is only on the combined efforts of all of our members that we can achieve the things we want and to move forward.
Indeed, gaining our European license was a timely and costly exercise and not one that we would have even considered unless we knew we have a sound business principal behind The Collective. The acronym TEAM (Together Everyone Achieves More) is never more appropriate.
Our members contribute to The Collective with their volume, allowing us to leverage access to liquidity not normally available to the small retail trader.
Member Satisfaction - we care about our members and they care about us!
This is a double edged sword. Our members are free to vote with their feet, just as in any market economy and we are free to eject anyone that we consider ‘trouble’.
We advocate 100% that any trader that can earn more net profit on their account by trading elsewhere should go trade somewhere else.
There is ZERO point trading with The Collective unless you can earn more than trading somewhere else. Go where you are best served. Period. Nothing is more important to a trader than bottom line profitability.
Of course this assumes all things to be equal and that you aren’t giving your money to someone that is about to run off with it. There is another great expression ‘Return OF my investment’ is far more important than ‘Return ON my investment’. If you can overcome that hurdle then go where best serves you.
We’re not trying to persuade you to go elsewhere but you really need to consider the bottom line. If the value that The Collective brings to the table isn’t of quantifiable value to you then you need to acknowledge that. Indeed if you are a brand new trader with a small initial investment of trading capital then we probably won’t help you much as our entry level membership may well eat into your profitability too much.
However, if you really are that new then please, please, please don’t waste your money trading with live money. You can never spend too much time on a demo platform. Once you think you’ve got it and are ready to trade live then think again and do the demo process all over again. We all pay for our education one way or another, just try and make yours as cheap as possible.
Whilst on a roll with quotes we absolutely recognise that ‘you can’t help all of the people all of the time’ and never was this more true than when Gary, one of our creators, took a call from a new prospective member early in our first few months of business.
The conversation was a typical conversation at the time with the gentlemen enquiring as to fees and our ‘newness’ and our trustworthiness etc. As the conversation went on, the chap seemed to overcome his fear and trepidation and really wanted to open an account. Gary decided that the chap was too much of a novice trader and got the feeling that the guy had money to burn and wanted to shortcut the learning curve by throwing cash at the market. From personal experience this NEVER works, in fact the worst thing that can happen is that your first foray into ‘gambling’ in Forex actually wins. From that point in you are doomed to failure, it is only a question of time. At least if the ‘gambler’ loses his first trade then he may have a more healthy respect for the markets.
Back to the story. So, Gary decided that the guy shouldn’t be trading and certainly not with The Collective as the last thing we wanted in our early days were stories of people blowing accounts whilst trading with us. Gary proceeded to very gently give the chap the benefit of his vast knowledge and experience and tried to persuade him to demo trade and not waste his money. A reasonable stance we feel.
Low and behold the guy went onto every forum imaginable and slated us rigorously for not letting him open an account! Super funny in hindsight and for Gary, who isn’t the most ‘people friendly’ person, it was a real insight into human psyche.
The moral of the story: You are going to do what the heck you like no matter what anyone tells you. So, we may come over as though we are ‘preaching’ and that’s because we are. If you are a novice trader then we know better than you and one day you’ll understand that.
We’ve no idea whether the guy in the story is trading still. If his pockets were deep enough then he probably is, but for sure he paid for his education and it will have cost him dearly. Don’t let your education cost you as much.