FxEthos was formed by a group of fund managers. We were jointly operating under small and private funds, institutional funds and a hedge fund.
In 2009, we decided to stop offering our fund management services for public subscription and were moved under a private company. This was for more prudent fund management practices and less commercialization by our various fund providers.
Naturally retail forex houses were chosen to clear the orders, as our volume was too small for banks and fund houses to use their credit lines.
What we didn’t realize then was that we were too large for the retail market. The level of clearance and competency of many such brokerage houses were both disappointing and self-defeating. Trade results were compromised and when profitable, trading conditions did change, often drastically at times. Over and over again, a change of brokering partners didn’t overcome the challenges faced.
When we got to understand the entire framework of how the retail industry works, we understood the supply chain of all money flows in the market. We also understood that the retail sector was always in an underdog situation. In other words, the big boys always took the meat off the market moves and the retail sector has to make do with the “bones”. What does this leave the retail trader with then?
This formed a compelling need and desire to form our own clearance exchange, to achieve our own goals.