Forex Scams Are Out of Control

You seem reputable. I have traded Forex before and found it to be quite questionable (I won't name the firm). I strictly trade regulated futures now--CME Globex (enough those are somewhat questionable).

Quote from Don Bright:

I did a TV show interview a couple years back, and they wanted to me address the Forex market. I simply googled "Forex, Fraud" and found what I already knew (to some extent), that there has been a wave of FX rising up with minor hysteria, people getting scammed, and firms finally getting shut down by regulators (mainly AG's and law enforcement since these firms aren't (really) regulated for the most part).

We are on the downside of the wave again, and hopefully the bad firms will go away, one way or the other.

We had a couple of FX firm owners come to our office telling us how much money we (Bright Trading) could make by having FX trading. My brother asked the simple question "That's all well and good, but how do the traders make any money?" Both firm "executives" were shocked that we would ask such a question.

FWIW,

Don
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I don't trade stuff unless I understand it, AND know how to profit off of it.

How forex works? Simple, you're trading foreign currencies, usually at extreme leverage. How to profit off of it? It has to be your FULL TIME JOB to study the forex market to profit off of it. The average joe is just going to get fucked.
 
Quote from Don Bright:

I did a TV show interview a couple years back, and they wanted to me address the Forex market. I simply googled "Forex, Fraud" and found what I already knew (to some extent), that there has been a wave of FX rising up with minor hysteria, people getting scammed, and firms finally getting shut down by regulators (mainly AG's and law enforcement since these firms aren't (really) regulated for the most part).

We are on the downside of the wave again, and hopefully the bad firms will go away, one way or the other.

We had a couple of FX firm owners come to our office telling us how much money we (Bright Trading) could make by having FX trading. My brother asked the simple question "That's all well and good, but how do the traders make any money?" Both firm "executives" were shocked that we would ask such a question.

FWIW,

Don
More...

If this is just another wave, then why is the CFTC suddenly cracking down with such vigor? They have a new task force and are aggressively touting their successes in recent months. It could just be grandstanding, but it seems like more than that. They've been sending this task force all around the country to meet with media, prosecutors, etc. to brief them on forex fraud.

Given the current market climate, I would have assumed that gold and oil fraud would be at the top of the CFTC's hit list. But that isn't the case. There must be a reason. Maybe a CFTC board member's family got scammed! :p
 
FX appeals to the "traders" that are really gamblers....just won't admit it to themselves....it is open 24 hours.....

Oil is too efficient....these are for the big boys who know what they are doing...

GOLD: This is the giant scam, LOL.....banks have been selling gold for years (getting out of the business) and yet scam artist keep telling people to buy it as the "last resort"....a load of crap

Nut jobs buying gold to hoard so they will have wealth when the rest of the country is a vast waste land.....

Gold is worth what the jeweler and the dentist will pay to use it in their business....

NO value as a money or hoarding vehicle....just a greater fool scam


SteveD
 
Quote from JaneE:

I didn't see the advert, so I have no idea what you're talking about. However, none of that explains why forex scams are suddenly all the rage?

Is CNBC suddenly covering forex or something? Where the heck do average investors even hear about this stuff, let alone fall prey to scammers?
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2 words: NO COMMISSIONS!

That's what you get when you don't pay a scumbag broker - you get a scumbag lowlife scam artist FX broker.

Better the devil you know than the devil you don't.
 
Quote from PohPoh:

2 words: NO COMMISSIONS!

That's what you get when you don't pay a scumbag broker - you get a scumbag lowlife scam artist FX broker.

Better the devil you know than the devil you don't.
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Wow! And I thought that I was the cynical one on this board. But you guys have me beat hands down. :cool:

I don't know if I would call gold a scam. I still see plenty of reputable banks and investment houses touting it as a "hedge against inflation" or a diversification tool, etc. It's mostly crap, but people still buy it.

I'd say gold has been pretty lucrative for the big houses, especially post-9/11. Gold and oil have have also had much higher profiles in the news than forex over the past few years. All of that makes you wonder why the con artists and thieves aren't targeting those products instead? I must be missing something on this.
 
Forex is a scam! Gold is a scam! Hell, it's all a scam and it's all gambling. It's just that stocks are the best gamble and easiest to profit from.
 
Im getting a sense from this stream that forex traders are below other traders...interesting...so if forex is a scam, whats a fair/smart market? You people think that exchange trade equities are any better? Are options a true thinking mans game?

Perhaps it not the asset class which stinks but the current firm lineup (which I completely agree).

I use an Inst. platform and am very happy. So let not throw the bay out with the bath water.
 
Quote from archon:

I'd say gold has been pretty lucrative for the big houses, especially post-9/11. Gold and oil have have also had much higher profiles in the news than forex over the past few years. All of that makes you wonder why the con artists and thieves aren't targeting those products instead? I must be missing something on this.
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Some of the reasons have already been mentioned above.

- no regulation
Gold and crude are accessible most easily (though not exclusively... you've also got spot and ETFs) via futures markets, which are highly regulated, particularly in the US. Cash forex is not. Yet.

- higher leverage
Up to 500:1 in forex.

- much lower account minimums
$100 and even less.

- "no commissions"
hah.

- decentralized marketplace --> no single price

- lack of tax reporting by dealers

- now YOU too can profit from the world's largest, most liquid market, which the big boys (banks, HF's) have had all to themselves for decades. Come and get your share of the money pie... what in the world are you waiting for?

If you are a con artist, what more do you need?
 
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