Welcome to Advanced Markets Journal


Journal status: live
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Advanced Markets profile

Is Advanced Markets safe?

  • Investor protection: ...
  • Regulation: ASIC Australia
  • Segregated account: yes
  • Guaranteed Stop Loss: ...
  • Negative Balance Protection: no

Is Advanced Markets trusted?

  • Information transparency: high ★★★★★
  • Customer service: ...
  • Advanced Markets website: semi-detailed, updated ★★★
  • Advanced Markets popularity (by visitor count): low visits ★★

How Advanced Markets works

I am interested in opening a retail account. Can I do that with Advanced Markets?

No, we can only accept a Wholesale client as defined by Section 761G(7) and 761G(A) of the Australian Corporations Act.

https://advancedmarketsfx.com/frequently-asked-questions/

WHOLESALE CLIENT---IMPORTANT NOTICE T O ALL CUSTOMERS In order to open an account with Advanced Markets Ltd, prospective Customers must qualify as a “wholesale customer” as defined by Section 761G(7) and 761GA of the Corporations Act 2001 (Cth) , which is Australian legislation.

1. ACCOUNT AUTHORISATION.

AMLTD is authorised to open one or more accounts in Customer’s name at AMLTD to carry Customer’s contracts in OTC FX (collectively, the “Account”). AMLTD is further authorised to purchase and sell OTC FX for Customer’s account with a counterparty bank or sophisticated institutions or participants... Unless instructed by Customer to the contrary in writing, AMLTD is authorised to execute all orders with such banking institutions, counterparties, banks, or sophisticated institutional participants as AMLTD deems appropriate. AMLTD may, at its sole discretion, engage in OTC FX transactions with Customer where AMLTD will act as the counterparty to the Customer in such transactions.

C. Trading OTC FX with AMLTD.

When you trade OTC FX contracts with AMLTD, AMLTD will act as principal in a privately negotiated contract with you. AMLTD may, in turn, enter into “back -to-back” transactions with others which may include its affiliates. A mark-up is included by A MLTD in the price it quotes to you. The OTC FX contract Transactions are not executed on an exchange and are not cleared by a central clearing organisation. Therefore, any contract with AMLTD will be an obligation of AMLTD and not an obligation of a clearing house. For this reason you will not be afforded the regulatory and financial protections afforded to contracts traded on an exchange.

10. TRADING LIMITATIONS

AMLTD will attempt to execute all Orders that it may, in its sole discretion, accept from Customer in accordance with Customer’s instructions... Customer agrees that AMLTD may, in its sole and absolute discretion, refuse to accept any Order from or enter into any contract with Customer, including but not limited to, in the event AMLTD believes that the acceptance of Customer’s Order, or the entering into of such contract with Customer, would be in contravention of any rule or law. In addition, AMLTD may at any time, in its sole and absolute discretion, limit the number or types of positions that Customer may maintain or acquire with AMLTD...

Page|820. CROSS TRADE CONSENT; TRADING AHEAD

Customer acknowledges and agrees that a situation may arise whereby an officer, director, affiliate, associate, employee, bank, bank employee or dealer associated with AMLTD may be the opposing broker or principal for a trade entered for Customer’s Account.

https://advancedmarketsfx.com/docs/AMIFX_App_Indiv.pdf

ADVANCED MARKETS DISCLOSURE

THE FOREIGN CURRENCY TRADING YOU ARE ENTERING INTO IS NOT CONDUCTED ON AN EXCHANGE. AMLTD IS ACTING AS A COUNTERPARTY IN THESE TRANSACTIONS AND THEREFORE ACTS AS THE BUYER WHEN YOU SELL AND THE SELLER WHEN YOU BUY. THE PRICES AMLTD OFFERS MIGHT NOT BE THE BEST PRICES AVAILABLE.

ALTHOUGH AMLTD IS THE COUNTERPARTY TO EACH OF YOUR TRADES, AMLTD LIMITS RISK TO ITSELF BY INSTANTANEOUSLY OFFSETTING THE TRADES AND POSITIONS IT ENTERS INTO WITH CUSTOMERS WITH ITS LIQUIDITY PROVIDERS OR INSTITUTIONAL MARKET MAKERS. AS A RESULT, AMLTD DOES NOT PROFIT WHEN YOU LOSE MONEY ON A TRADE, RATHER, AMLTD IS COMPENSATED BY MARKING UP THE PRICE IT RECEIVES FROM THE LIQUIDITY PROVIDERS OR INSTITUTIONAL MARKET MAKER.

https://advancedmarketsfx.com/docs/AMIFX_nfa_req_notices_for_fdms.html

EXECUTION POLICY

Advanced Markets LTD offers a strict Straight-Through-Processing (STP) model to its customers. This means that each and every customer trade is executed by, and passed through to, the liquidity provider that showed the best price at the time the trade was placed. Unlike the standard Dealing Desk Model, the STP model employed by Advanced Markets LTD means that the firm does not take any positions against its clients' trading activity.

OFF MARKET RATE

If any client is filled on a rate deemed to be off market, Advanced Markets LTD will investigate. If more than 1 bank has showed a similar rate, it will be considered an on market rate. Advanced Markets LTD may make reasonable efforts to request an amended rate from executing bank. In the event the executing bank agrees to amend the rate, then Advanced Markets LTD will make the appropriate adjustment to affected client.

https://advancedmarketsfx.com/docs/AMIFX_general_disclosure.html

The Company also offers a “Prime of Prime” credit model where prime broker credit is extended to eligible wholesale and institutional clients. With this model, clients are able to deposit collateral (margin) with Advanced Markets in order to leverage off the firm’s excellent credit relationships with its prime brokers.

https://advancedmarketsfx.com/prime-brokerage/

REGULATORY GUIDE 121 "Doing financial services business in Australia"

‘Wholesale’ versus ‘retail’ clients

RG 121.38 Disclosure requirements in relation to the financial services regime generally apply only to ‘retail clients’ because it is recognised that ‘wholesale clients’ are in a better position to look after their own interests.

RG 121.39 A person may fall within the definition of a wholesale client if, among other things, they are:

(a) a person purchasing a financial product, or a financial service related to a financial product, where the value of the product is above the prescribed threshold (currently set by the Corporations Regulations at $500,000);

(b) a person with certified net assets of at least $2.5 million or a person who had a gross income for each of the past two financial years of at least $250,000; or

(c) a ‘professional investor’. This category includes AFS licensees, listed entities, banks and friendly societies, and other entities that may be presumed to have the expertise or access to professional advice to justify their being treated as wholesale. Note: See s761G and regs 7.1.11–7.1.28 for provisions on wholesale and retail clients.

https://download.asic.gov.au/media/3336163/rg121-published-25-august-2015.pdf

https://asic.gov.au/regulatory-resources/financial-services/financial-product-disclosure/certificates-issued-by-a-qualified-accountant/

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