But fortunately, the Forex Peace Army is here. If you spend
some more time with us and not just in our Military School – you will get much
more material, both theoretical and practical, that will prevent you from been
a scam victim of any forex scam.
I hope you know demand/supply financial law. While demand
exists – supply will exist also. In other words, while people exists that buy
into these frauds – there will be swindlers always near them. Another reason is
that people are less familiar with currency trading compared to bonds and stock
shares. Bonds and stocks are intuitively easier to understand and they have
solid barriers to start trading. At the same time there is a huge campaign to
show that trading on forex is easy. On TV you see a well dressed person who
sits in front of a laptop somewhere on the see shore with cup of coffee. With a
smile, he or she presses buttons on trading software. After that he or she
jumps into an expensive car and drives to some country club. That makes people
think that this is really so. When they match advertisement on TV with some
“great trading system” being offered – that’s it! One desire confirms the
other!
: So, as I’ve
promised we will talk a bit about the other side of the moon – possible
pitfalls that wait on the road of forex trading. One of the biggest pits is
Forex Scam. We even more have to speak about it, since we are the Forex Peace
Army and “seek and destroy” scam is our major aim. So, we know a lot about
them, their tricks and cunning. But here we will just point out the biggest
issues and will not overlap with other content of our website. In corresponding
parts you will find a lot more information that also appears to be really
practical and not just theoretical as it is here.
Rizwan Awan lures in a new victim
Click here to read the true story a forex account manager
who never stops scamming.
Pipruit: Yes, I need to know more. Forewarned is forearmed.
: Right and we will
start with Trading Managers. May be this will not touch you at this time, but
I’m ready to bet that before you have come to our school – you’ve thought about
it. Trading Managers are those who offer you to trust them your money. These
people will trade/invest for their clients. Many people think about this
seriously. “I do not know how to trade and know nothing about Forex and
financial markets. But I want to increase my capital, and increase it solidly.
If I put my money on bank deposit – this will give me too small of a return,
while here I can become rich fast, at least this is financial markets – fast
way to high wealth.”
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That is the thought sequence of many people. When they come
to this conclusion, the next thought is: "They take just a part of my
profit. This sounds reasonable” and then “What do I know about trading and
forex – nothing. But they are professionals with large experience of successful
trading, they know what to do, since they have spent a long time in this
business. With my job on my shoulders – I have no time to study trading and
forex, why I shouldn’t trust professionals?"
Pipruit: Well, you’re right, sir. I’ve had such thoughts
initially, because a professional manager will probably trade much better than
me. I think I'll look online for forex account managers and see if there's one
showing good returns on his website.
: Well, don’t you
think that this is a bit of curious venture – give your money to the first
comer?
Pipruit: … I don’t know, he is still a manager…
: Right. The major
question is manager of what and to where? To take clients money is very simple
task, especially on over-the-counter market as Forex, that are not so strictly
regulated, compared to exchange markets. As a result your so-called manager
charter a private plan and leave for some tropic personal island somewhere and
will use your money to help pay to build a castle on the shore. And you will
try to start a lawsuit to catch this bastard and get your money back. If you
will get very lucky and lawsuit will start – it will appear that there is huge
drawdown in client’s assets, but your manager now claims to be unemployed and
all his property is hidden away in some banana republic offshore and does not
appear to belong to him legally.
Pipruit: I can’t believe it…
: Ok, may be this is
too ultimate a picture and I carry it too far for the average managed forex
scammer. But still, manager could be in cahoots with the broker so he will
trade too much to pay more spread, he could intentionally lose all your money
and get kickback from Dealing Desk broker and it will be very hard to prove it.
There are a lot of different chances to grab your money.
Pipruit: So, I can’t trust to any manager?
: Not quite. In fact,
there are persons that are really good managers who are real old sweats of
trading with huge experience and knowledge. They exist, but they are more the
exception rather than the rule.
Pipruit: I see and what I have to do to find one?
: Yes you can. This
may or may not be a smart decision. But here is some advise to you:
1. Before giving your trust to anybody – scrutinize and
investigate his results in trading. Our Managed Accounts reviews and Managed
Accounts Performance Tests will help you with that;
2. Depending what you’re searching for, signals, trading
systems or managers – investigate all of our other reviews and all of our
performance tests.
3. Pharaoh does a great work – visit his Basics boot camp
and particularly the topic dedicated to managed forex accounts to learn some
ways to separate scam managers from real ones.
For the short haul that will be enough. If you will need
some more – you can ask questions at the FPA and try to dig into this issue
deeper.
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Major anti-scam rule to follow
Do you remember
“Dennis The Menace 2” movie, where two crooks have come to Mr. Wilson and
offered him a rejuvenation machine “for only $15,000”. This is such a good
machine, it’s priceless and we will give it to you just for 15 K USD advance
payment. You have no risk, since you have our priceless machine as a pledge.
Surely we will return you your puny 15 K USD if somehow you will become unsatisfied,
what is hardly likely. Don’t you think that we can change puny 15K for our
super machine – this is madness.
Pipruit: Yep, excellent movie – one of my favorite,
especially Denis’ dog – Briar.
: Right. I like this
dog too, but let’s return to our business. You have to remember what kind of
machine this was…
Pipruit: Sure I do – that was a fake
: Right. Now I’ll
give you another description. What will be if some well-dressed gentlemen will
come to you and offer some superb trading system or managed account or software
or anything else, that will give you 10000000…0000% of profit in 1 year with
100% probability. This is just a pips machine – just take a look at past
performance! It will turn your 1000 USD account into billions in just one year
and Mr. Buffet will clean your boots to make some money! This system (software,
manager) costs just a puny 20 K USD. You have no risk, since you will get our
priceless software or trading system on your hands. If something will go wrong
– we will surely return your money, since we will not want to risk our
priceless invention for your puny 20 K USD.
Pipruit: I get the analogy, sir. By the way, I’ve seen this
offer a lot of times. Some advertisement I even got by post in pretty good
envelopes on excellent glossy paper with charts, explanations and so on.
: Yep. This is also
of this kind. So, anybody has to understand that the major rule – There is no
Holy Grail on Forex. You can get money and profit only as a result of hard work
– sounds equal to any other sphere right? Those swindlers also get money by
hard work – but their work is of another kind. Trading is an exciting journey,
but there is no trigger that adds to your 1000 USD the letter “K”, turning your
cash to 1000 K USD. 90% of all who offers you such products mostly are
swindlers and as we call them – scam. They are not some mystic substance – they
do really exist and their hard work is to grab your money once you have become
careless.
Pipruit: But why does it continue to happen even now, since
this fact is well known already?
