FI is not a market, is a booker who charges 5% spread + 2% comm.



  • Please correct if I am wrong.

    FACTS::
    1- You cannot place a bid for a player at a price limit. If I want to BID above FI bid, I can't! How is that a market? All prices you see are not from users, but rather from FI itself. That's is NOT a market, but a booker system.

    2- Spreads are on avg 5%!!! As you are not trading in a market against other users, most of the spread goes to FI.

    3-Besides the 5% spread , there's also 2% comm! FI takes 7% of every penny you invest.

    OPINION::
    You can't make sustentable profits like that. The bublle effect will make winners, as new joiners will inflate prices. First joinners will make money. But the system will collapse once the rate of new joiners become flat.
    This is called: ponzi scheme.



  • @NewUser275372 so i take it you're not going to invest then???



  • @dannypea early jonners make money on ponzi schemes. Like BTC.



  • @NewUser275372 so are you too late to the party??



  • Interesting. You will get alot of downvotes because there is a very strong "FI is the best thing in my life" sentiment on this board but as devil's advocate I would be interested what say an actual economics or finance professor thought about the FI project and it's sustainability and overall model. Would make an interesting read I think.



  • @NewUser275372 of course you can make profit in fact huge profits if you play it right. Patience is key. You don't have to instant sell and if your players in demand then you sell to the market and you sell at a better price than an instant sell. Yes they take 2% commission but you wouldn't not if u set up a company like this. You cant make an instant profit but patience is key. There is no commission for buying a player which with company stocks there is



  • Football Index started in 2015, I joined about 5 months ago so definitely not a early joiner, im currently 30.7% up



  • @NewUser275372 How about you delete this thread and delete your account and then put your sneakers on and take a jog to the nearest bookies.



  • @Static it's very easy to understand there's not much value on the player you buy. It's very hard to get paid dividends in relation to the price you pay.

    MOST OF THE PROFIT comes from the price action, not from the underlying value of the player (dividends).
    This is why we can say it's a ponzi scheme. You BUY because more people will BUY, not because you will get dividends. Based, on dividends, you won't make money.

    You all can do this exercise: Would you have profit or losses based on dividends only? 100% of you would be with a low rate of return or negative return.

    You only make money, because of price action. Not because of dividends. That's what we call "bubble". You BUY, because someone else will BUY later. Until the rate of new joinners become flat.



  • @Boing-Boing not necessarily. Can't predict rate of new jonneirs, but it is still growing. Marketing of the website has been very strong.



  • So I joined 6 month ago

    Have £500 in dividends and 10% roi on a now 20k+ invest

    So I’ve made money from divedends and the 10% increase is a nice bonus, it’s better then money sitting in an account earning 2% a year

    I get your point but the whole thing is based on divedends, driving the price, I invest in players who return me money not youngsters who might be good in a few years!

    Everyone has their Stragey I’ve chosen mine some people may get burnt but it’s gambling at the end on the day

    Ps thing the spreads could be narrower imo



  • Yes if you come here for short term investment you will suffer.

    But patience, long term and market selling everything you state is non applicable.

    Go to bookies for your quick fix



  • @NewUser275372 Not really sure what the point of this thread is.
    Is this a high horse so you can return to the forum if this goes to shit and say I told you so?
    Are you warning people who have actively joined FI, researched, invested their own money and spend time on the forum that we are all numpties and you are here to save us from impending crisis by telling us we should all withdraw our investments?
    Or are you simply hoping FI will respond and get into minute detail about your post, engaging in a conversation with another person who decides everything in life is a scam?

    If you don't want to be on here, don't be on here. Simple as that.



  • @Rufio90210 I joined November2018, have never instant sold and I'm 44% up



  • @NewUser275372 “someone else will BUT later?” It’s hard to take an argument seriously when you write so poorly.

    Your logic fails to stack up almost as spectacularly as your writing.

    I have players in my portfolio who have an annual dividend yield upwards of 10%. The price of these players could stay static and I would still be making significantly more money than pretty much any alternative in the current economic climate.

    The Ponzi scheme argument doesn’t hold here either. In a true Ponzi scheme, the profits are manufactured, and as soon as you see investors trying to encash their position the whole thing comes crashing down because the people running the scheme have no real assets to pay out. In FI, the pricing mechanism is such that when an investor sells, the price of the players falls and as such the liability to the FI (the company) falls at an equal rate. If they are running the company sensibly they will always have the liquidity to pay back investors, albeit at lower prices as more money is withdrawn.

    However it is my view that the market is enormous for FI and much of it is untapped, so i predict flows into the market will exceed withdrawals for many years to come - meaning there is potential for capital growth as well as the dividend yields I referred to earlier.



  • @Rufio90210 as I said, how much are you up only on dividends? Price action is driven by new joinners.



  • @NewUser275372 said in FI is not a market, is a booker who charges 5% spread + 2% comm.:

    @Static it's very easy to understand there's not much value on the player you buy. It's very hard to get paid dividends in relation to the price you pay.

    MOST OF THE PROFIT comes from the price action, not from the underlying value of the player (dividends).
    This is why we can say it's a ponzi scheme. You BUY because more people will BUY, not because you will get dividends. Based, on dividends, you won't make money.

    You all can do this exercise: Would you have profit or losses based on dividends only? 100% of you would be with a low rate of return or negative return.

    You only make money, because of price action. Not because of dividends. That's what we call "bubble". You BUY, because someone else will BUT later. Until the rate of new joinners become flat.

    This is absurd. You're getting bogged down in semantics.

    When you buy a Football Index future you are basically placing a bet on a player returning dividends over the next 1095 PLUS holding or growing their value for dividend returns beyond that. Of course it's a bet, but the long term nature and resaleability of those bets gives it the dynamics of a market. In this epic market growth stage the capital appreciation outweighs the dividends, but ultimately dividends will become the most lucrative way of making money.



  • @EMBO90 so that's my calculation:

    You mande £500 on divivends
    But paid 7% (spread+comm) over the 20k invested: £-1.4k (remember you will need to sell your position)

    You only have profit because of price action. Not because of dividens.
    The value (dividends) are too low compared to prices and costs.



  • Regardless of capital appreciation, I earned around 9% through dividends alone last year and I'm confident of a higher yield this year, as I started slow and made mistakes. That alone more than makes up for the commission FI take, and I use patience and always sell to market rather than IS, so I never pay the 5% spread. So in short, I do make money based on dividends alone. Much more through appreciation granted, but it's nice to know there's a steady stream of dividends paid regularly, and proves its not a ponzi scheme.



  • @NewUser275372 said in FI is not a market, is a booker who charges 5% spread + 2% comm.:

    @EMBO90 so that's my calculation:

    You mande £500 on divivends
    But paid 7% (spread+comm) over the 20k invested: £-1.4k (remember you will need to sell your position)

    You only have profit because of price action. Not because of dividens.
    The value (dividends) are too low compared to prices and costs.

    Mate you've lost the plot.

    1. You should always aim to market sell to avoid paying the 5% spread. ALL your arguments so far seem blind to the existence of market sell.

    2. He bought them 6 months ago. He could hold them for another 2 years 6 months and KEEP accumulating dividends PLUS get a good resale price if he bought an improving option for other traders.

    All you really need to do to make money on FI is make sure you have a desirable asset that returns more than 2% of its price over the course of 3 years.


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