How healthy is FI?



  • Just a question, obviously like everyone else on here, I want to make sure my money is safe. Is there anyway to find out how secure and stable this company is? Is this promo a potential sign that the index is not doing as well as expected and there’s a risk now or is it simply a trial? Any opinions and facts welcome.



  • They’re domiciled in Jersey so no way to find out :/

    It is what it is...!



  • A fair question.

    I saw a response from FI posted on Twitter recently advising that FI used the 2 per cent Comission and spreads to run their business but that dividends are actually paid from customer deposits.

    On this basis the Index requires more money to be put into it than taken out of it.



  • @Spirit-cat hence why they need daily buys and sells. Its why i believe instant sell will never be scrapped yet i dont understand why they suspend it on players like ronaldo when the allegations arose.its their chance to make money.this company cant survive if everyone buys to hold, never sell and take dividends. I want to build long term but this dividend is here to stay i reckon and ive had to rethink. They have made too much money in only a week from it to ditch it



  • If the issue is that FI only get commission on 2% when they sell and people are holding shares for long periods of time, Wwhy don't they take 1% at purchase and 1% at sale?



  • @Finlay77 Bang on well said



  • I don’t think it’s a problem that dividends are paid from the deposit pool. It would only be a problem if a significant percentage of people fled from the Index. I guess it’s the same with banks that if everyone withdrew all their money then the business would fail. FI need to build a trustworthy business in my opinion to ensure nothing on that scale ever occurs.



  • @Spirit-cat source please? Ive not seen this



  • Football index have stated at the last london trader event that the average share hold duration is 48 hours. If this is true then you really dont need to worry they are raking in the commission



  • @Noirx4 fair chance its a lot less noo too. FI creamin it!



  • @Noirx4 ask Footyindex_FPL about it on twitter, i'm sure he'll be happy to tell you about it.



  • @NewUser731 that would be a great idea.



  • @NewUser171924 northern rock springs to mind !!



  • Ok so something to hopefully quell some fears about using share funds to cover dividends. See below process.

    1. You buy a new share of neymar for £15 from FI
    2. You decide to sell your neymar share to market for £15
    3. Jeff buys your neymar share for £15

    FACT 1 : Football index have just made £15 + 2% commission so 30p commission
    FACT 2 : Football index need to have enough funds to instant sell that share c. £14 and pay dividends.

    So football index would need to have paid £1.30 in dividends in this example to start being out of pocket.

    If the stated average hold is 48 hours you won't be making many dividends vs commission.

    Hope this helps



  • If FI took 1% at point of purchase then surely there would be less need to so this current offer forcing people to rebuy every month? It will be interesting at the end of this promo if the same rules apply if people will sell and rebuy the same players given that the value of surprise this time has been lost.



  • @Noirx4 i know this was briefly discussed on your FIG pod.... do you think it's possible the average hold is 48 hours? Personally, I find this very difficult to believe (pre GA at least!) Surely big holds, passive users etc vastly outweigh traders coming in and out of players every few hours? How would the prices of futures get so high otherwise, for one.



  • @Keegan's-Bluff as ive said previously i was gobsmacked by the statement. But they are FIs numbers and youd think if they were going to make them up they would have said a month or something less shocking



  • I dont think its hard to believe the average hold is 48 hours, players spike a lot on game days and then go back down pretty quickly when they dont win Mb or pb.



  • If the average hold is 48hrs people have far too much time on their hands, personally don't believe this at all.



  • @Spirit-cat said in How healthy is FI?:

    A fair question.

    I saw a response from FI posted on Twitter recently advising that FI used the 2 per cent Comission and spreads to run their business but that dividends are actually paid from customer deposits.

    On this basis the Index requires more money to be put into it than taken out of it.

    The deposits are assets though ...

    Here is another way of looking at it. What do you think is the overall yield of the index. Sure players like pogba and messi may be returning 30 percent or so but there are lots of players returning zero. There was talk on slack about how under valued alba is and people were projecting 5 percent for him.

    I reckon across the entire index, the yield is less than 5 percent. If you consider all the keepers and kids returning nothing , it could well be a lot less than that.

    If they have invested the deposits they may well be able to pay the dividends and a lot more just from interest/return on investment. In which case it is 100 percent logical to use that pit to pay out as it will be growing all the time.


Log in to reply