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Tricks and Tactics: The Referral Ninjutsu

Bobo ang mga newbies! Dapat pineperahan lang ang mga yan!

Alam na nila ngayon ang pag eedit ng port kaya hindi na sila maloloko doon.

Wala na paraan para pagkaperahan sila?

YUN ANG AKALA NILA!

Kung hindi natin madaan sa edit ng port gamitin natin ang bagong secret weapon.

REFERRALS NINJUTSU!

Dahil nagbibigay ang mga online trading platforms like etoro ng mga signing bonus at referral bonus ang gagawin natin ay hikayatin ang mga traders na magtrade global.

Banatan natin ng mga post na pang akit!

“Walang kita sa PSE?Try nyo mag global. Here is a link na pwede mo magamit”

“Gusto ninyo malaman paano mgtrade global?Let me help you. Follow this link”

Post ka muna edited port sabay:

“kung hirap kayo sa PSE subukan ninyo ito mabilis pera dito!”

Kapag may kumagat pera na!

REFERRAL NINJUTSU SAMPLE

etoro
etoro cash bonus referral
XM Referral Bonus
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Zero Partner
Zero partner referral bonus

SAMPLE NG MGA NINJUTSU GURUS

The Empress Global Market Trading
The Empress Global Market Trading
Alex Onze Webinar Master Class
BOH Society Global Markets
Money Growers XD
The Empress

MAY MALI BA SA REFERRAL?

Wala! Walang mali sa referral bonus. (Aside sa ibang gurus na sapilitan ang pagbibigay ng referrals wala naman mali sa referrals.)

May mali sa pakay.

NEXT IS THIS: WHEN COMMISSION FREE TRADING ISN’T REALLY FREE

WHEN COMMISSION FREE TRADING ISN'T REALLY FREE

You might have seen adverts popping up on the tube or the Tube in recent months for “commission-free” stock trading, from companies like eToro, Trading 212, or Plus500. 

Here’s a particularly extravagant one from Trading 212:

In case you didn’t feel like watching that, we quote: 

Go ahead — skip this ad. Those fat-cat commission-takers wouldn’t want you to see it. They wouldn’t want you to see how they bathe in a bathtub made of gold, filled with gold — even the sink-plug is gold — or how they make paper-planes with money, wipe themselves with money. Your money. Your money. Your money.

Trading 212, a company founded 15 years ago in Bulgaria that is now domiciled in London and FCA-regulated (although it still has an entity in Bulgaria and also one in Vanuatu), seems to be doing OK for itself. According to Companies House filings, the group made £28.9m of profit on revenues of £56.3m in 2018; the UK entity made just £1.8m of profits but this is a highly regulated UK company, you understand. (We asked Trading 212 why they had an entity in Vanuatu but they declined to comment.)

Kind of feels like these guys might also be able to make paper-planes with their customer’s money. And yet they charge no commission. So what gives? 

Well it turns out that this commission-free trading lark isn’t a source of profit for Trading 212 (or anyone else, for that matter). What it is, however, is a very effective bait-and-switch strategy: it lures customers in and then shifts them to financial products that do generate money. Lots of it. Probably enough to buy a golden bathtub with a golden sink-plug. 

And the most lucrative products of all are contracts for difference (CFDs), the revenues from which are then used to subsidize the commission-free trading. Although the companies that push them like to use the word “trading”, buying and selling CFDs is much more akin to gambling, and in fact has its roots in spread betting (the clue is in the name).

A CFD is essentially a bet on a particular asset going up or down in value, with the broker and seller agreeing that whoever wins the bet will pay the other the difference between the asset’s price now and its price at an agreed time in the future. If you really want to try to make some real money with CFDs, you of course have to use leverage, which is the exact reason why most CFD gamblers, like gamblers everywhere since the beginning of time, lose money. 

A recent regulatory crackdown means that CFD providers now have to display a risk warning about how likely investors are to lose money with them, in a “prominent” place on their website or app, and “published against a neutral background”. Grey text on a grey background is plenty prominent enough, we assume. It’s certainly neutral, anyway: 

Trading 212 CFD

(In case you couldn’t read that, that’s 76 per cent of Trading 212’s retail who lost money in the most recent three-month period.)

Trading 212, who launched commission-free trading in 2017, say that cross-selling into CFDs isn’t the only reason for offering the free stuff though. The company’s chief executive Ivan Ashminov told us: 

“We really wanted to do something that would have a disruptive impact on the next generation of investors.”

Nobody ever just wants to make some more money, do they? They always want to disrupt. He did also acknowledge, however:

“Getting the trust and popularity among millions of investors will help us organically get CFD traders, of course. But the long-term goal is that once we reach billions of pounds of clients’ equity, we’ll be able to produce some premium features for which we’ll be able to charge. If we grow big enough we’ll find ways to monetize the equity business as well.”

ETORO, THE “AMAZON OF FINANCE”

Iqbal Gandham, the UK managing director of eToro, told us his firm had made the decision to launch commission-free trading last year because they wanted to become the “Amazon of finance”, and that it was absolutely not about cross-selling

While Trading 212 keeps its actual stock trading slightly separate from CFDs on its platform, in eToro it’s a much more seamless experience. So seamless, in fact, that as an inexperienced retail customer you might not quite be aware when you are moving from one product to the other, because it’s all in the same place. So seamless, in fact, that one might almost think that it had been set up in this way deliberately.

Here’s what you’d see if you were buying a real stock in easyJet, with no leverage (screenshots from eToro):

etoro

And here’s what you’d see if you decided to buy the same stock but with five-times leverage:

etoro

You are still on the same screen, but the “COMMISSION FREE” bit has changed. You are also shown an “OVERNIGHT FEE” that wasn’t there before, although nowhere does it say that you are also now being charged commission, which you in fact are, as well as the overnight fee. 

And eToro is even more generous than Trading 212 with its terms. Not only does it not charge commission when you buy a real stock but it also pays the 0.5 per cent stamp duty that you would normally have to pay on FTSE-listed shares. It seems like they’re very keen to get people into this money-losing product

But Gandham stressed that this really is not about selling CFDs. “That’s our history. That’s our legacy,” he told us. Trading 212 has an “affiliates” programme that gives successful referrers $1,000 for every new customer who deposits $1,000 into a CFD account, and despite eToro having a similarly lucrative referral programme, Gandham almost seemed to be telling us that CFDs don’t matter to the company any more:

Copy-trading is indeed eToro’s USP (and it’s the thing that you might have seen Alec Baldwin tell you about in a YouTube ad). But the thing is, copy-trading on eToro is more often than not CFD trading, and when it’s not (ie when the person being copied is trading real stocks), it can become CFD trading without the person doing the copying even being aware of it.

The copier starts by being given the exact same positions as the person they have decided to copy (let’s call them the copyee), whether those be long or short, and leveraged or unleveraged. It means if the copyee then decides to dial up the risk at some point and add some leverage to their positions, that leverage is also added to the copier’s positions, without warning or even notification (and vice versa, if the copyee de-risked). So it’s pretty easy for a copier to suddenly be exposed to a significant amount of added risk, without necessarily knowing it. 

Gandham also told us he used to trade CFDs, back when he was working for a cloud-service provider about 15 years ago. How did he fare? He lost about £3,000 of his money on them. He doesn’t touch them any more though; “I don’t have time,” he told us. (He does, however, have time to buy crypto.)

MR DELTOID

Trading 212 says it doesn’t even consider eToro competition. As for Freetrade — a company that also offers commission-free trading but rather than selling CFDs is instead trying to make money on FX fees and, in the future, a premium account — that’s only a “very small competitor”, according to Ashminov. 

But it seems like some of Freetrade’s customers spend a lot of their time thinking about Trading 212 — or they do if their community forum is anything to go by. Some forum members are really quite enthusiastic about the company, and seem to know a lot about it. Like this guy, a one “Mr Deltoid” (a reference to the probation officer in Stanley Kubrick’s Clockwork Orange):

Deltoid

Mr Deltoid registered for the forum under an email address that used a very particular word, followed by three digits. We won’t share the word or digits here, for privacy reasons, but it turns out that this particular word and digits were also used by someone calling themselves “Ivan A.” on an old Flikr account. 

Ivan A.” is also used by Ashminov on Twitter:

So we asked Ashminov if he had ever posted comments in the Freetrade community forum, and he told us:

Me personally? Well I’m afraid that the recent reports on the culture inside their company — I’m afraid that some of this toxicity has spread to this forum. 

If you look at their forum — because of course we are monitoring what’s going on the internet — I am informed by my team that there is a lot of misinformation spread. You can see many of their own clients — who some of them happen to be our own clients — correcting the misreporting that’s happening now. 
There is some kind of obsession with Freetrade. Every other day we see our name popping up on their community

We also asked Ashminov whether he had ever used that email address, and he told us: “I don’t think so”.

When we said he didn’t sound too sure about that, he said: 

I have to think about all the email addresses I’ve used in the past but it doesn’t really ring a bell, so it’s definitely not an address I’m aware of. 

Rrright. 

Ang blog na ito ay para sa TL family ko. If you ever see someone pasimpleng nagpopost ng referral or links just comment NINJUTSU or REFERRAL NINJUTSU. Yan ang code natin to warn our other TL family na iwasan ang mga ganung post.

All things written here sa blog are facts. Truth might hurt them but truth is truth. This is to help my TL family kaya para sa kanila ang blog na ito.

Tandaan ninyo ito pag dating sa mga gurus.

If you want to learn more about stock trading join our Facebook Group called Trader’s Lounge

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There are available weekly lessons inside. We created different trading strategies like MAMA which made a lot of traders profitable. Other trading strategies include FISHBALL, PAPA, CALMA and more. We want to offer OFW’s, Employees and all Filipino people a chance to learn without paying a cent. 

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Come join us. Let us push free learning. 

6 Comments

  • Rey

    Indeed nothing is free nowadays except our TL family, one way or another, gurus out there will be eating up your hard earned money unknowingly. Be aware, being a member of this family enlightens my perception of being a trader.

  • Tess

    I never knew that CFDs are for gamblers…. I used IG’s CFD because it allows me to short sell ASX stocks. But it’s true that you could blow up your account. I learned that the hard way that’s why I will only short sell if there’s a strong downward price action.
    Thank you for this post.

    Best regards,
    Tess

  • BARR Y TOMS

    PARANG NARUTO RIN, MY FAV MANGA…NINJUTSU! Ang mga kalaban niya na gumagamit ng “FORBIDDEN NINJUTSU” ay nagpapalit-palit ng MUKHA! Parang sa PSE, maraming NINJA na gumagamit ng “Forbidden Jutsu” para mahulog ka sa trap nila!

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