Forex Scams Are Out of Control

Please elaborate further. What exactly is the scam? The modus operandi? Maybe that will help some of us understand the nature of the problem.
 
Quote from late apex:

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?
More...

All interesting points. I don't know if I would tout the ease of using gold futures, though. After all, your average retail trader/investor wouldn't know how to open a futures account if their life depended on it. They are much better off going for the ETF, which is exactly what they have been doing.

Back on topic, I do find this proliferation of Forex scams to be extremely disturbing. Maybe oil and gold have become TOO readily available to retail investors now that ETFs are on the market. So the scammers have moved on to the next big thing that investors still don't understand - Forex. After all, it's much easier to scam people using a product that they don't understand.
 
Quote from late apex:

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?
More...


Indeed, that's all you need to run your scam ; running stops(remember your broker is at the other side of your trade),sabotaging profitable traders, freezing platforms, disconnecting when you want to get out of a profitable trade,no obligation to fill you at displayed prices,etc...there are in fact NO RULES you have to abide to running a forex brokerage business.
90 % of traders lose money so you only have to sabotage the small group of profitable traders,trades then you make more than just the spread(market maker's typical profit) : all the money your customers lose, is the money you make, if I had no conscience, I would run a shady brokerage business :D
 
Quote from The Greeks:

All interesting points. I don't know if I would tout the ease of using gold futures, though. After all, your average retail trader/investor wouldn't know how to open a futures account if their life depended on it. They are much better off going for the ETF, which is exactly what they have been doing.

Back on topic, I do find this proliferation of Forex scams to be extremely disturbing. Maybe oil and gold have become TOO readily available to retail investors now that ETFs are on the market. So the scammers have moved on to the next big thing that investors still don't understand - Forex. After all, it's much easier to scam people using a product that they don't understand.
More...

I never thought of it that way before. Oil, gold and other ETFs have gotten too much coverage in the media, and are too well-known to the average investor, so the con men have moved on to other markets. I suppose that makes sense, because it is difficult to con someone with a product that they understand. On the other hand, that hasn't stopped them in the past. Just look at all the equity scams that surface every year, and stocks have to be the most widely-followed asset class in the world.
 
Quote from dekac:

Hi

The currency trading (FOREX) market is the biggest and the fastest growing market on earth. Its daily turnover is more than 2.5 trillion dollars
More...

How long have you worked for 4X Made Easy?
 
4X Made Easy® is a powerful FOREX trading software program and research tool used to conduct (spot) FOREX market analysis and quickly chart potential entry and exit signals on any of 17 currency pairs.


:D
 
Flash:

trading Mogul surdo...was seen walking from the headquarters at 4XmadeEasy....it is rumored that he will make the Forbes list next year...

When asked how he could account for his success...he proceeded past the red light and was struck by a moving vehicle...but surdo...the kinda guy that he was...got up brushed himself off and said it was ok...

Then he continued across the street...the light was green this time...when this reporter caught up with him...he said now you try it....buy my program...

ES :)
 
4X Made Easy is a total scam. Have you seen their ads in the south? They were totally trying to pick off anyone who lacks investment sophistication, terrible. I personally have simply never trusted something advertised via an infomercial. But I would be interested to know if anyone has ever traded with them successfully....anyone here?
 
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