Why Hedgestreet Will Fail
They lead the prediction market field in generation of press releases,
but their volumes and fees are abysmal. They are in an imaginary
niche. The big boys play at the CME. The little guys want somewhere to
bang out a few day trades on the Dow and then bet the NBA that night.
A stand alone that does only financial contracts will have a very
tough time surviving because so many better alternatives already
exist.
Their EUR/USD contract is one example. Anyone can already trade the
spot market with 200:1 leverage 24 hours a day. Traders can use the
futures as well. No trader in his right mind will go to an illiquid
market with high fees. Same for gold, silver, etc.
A trader gives up a lot to go on hedgestreet, the only "benefit" (that
I see) being regulation. But the regulation also makes it a huge pain
to open the account, Proof of Residence, Government ID, etc., stuff
that TS users don't have to deal with…
4 Comments:
Hedgeshit blows! They don't even freeze the funds in your account!
Tradesports is cool, but bless your lucky leprechaun charms dollars - becuase they are in Ireland.
HedgeStreet is based in the US, so that gives me more confidence. If TradeSports suddenly went under, what would happen? It and your money would simply vanish quicker then a beer on Saint Patricks Day...
The reason that I like HedgeStreet over futures/fx is because of the Binary structure.
It doesn't matter if a broker is in the US or not. Look at RefCo... I'm still waiting for money from that and I won't even get the full amount because they cutting it down for the traders... I don't trust brokers whether they US or Belize, they the same. Basically, trade with money you don't mind losing, simple ;)
Looks like this was a sage piece of wisdom. HedgeStreet is returning all traders funds this week. Trading isn't available.
Post a Comment
Links to this post:
Create a Link
<< Home