Forex Scams

An in depth Discussion, Discovery, and Documentary of all the different FOREX SCAMS found today!

First off, I have never been scammed by any External Money Manager. I have never bought a single trading robot (Expert Advisor), Ebook, or any other Internet product related to trading. I have bought a few Economic Books and I have thumbed through every technical analysis book found at Barnes N Nobles. I have attended a Training Seminar Program back in late 2006 when I was introduced to Forex through IBFX. IBFX had teamed up with another company to advertise and host seminars at hotels, convention centers, and other group meeting organization’s in hopes of convincing the majority of the elderly crowd to risk their retirement chacing the far fetched dreams of becoming a day trader.. And yes, I fell for the hype too.. The seminar was well organized, professional and pretended to give off a Wealthy image. The organization preached how these Retiree’s could start making pips every night with their exclusive trading systems and support for a whopping $6999. Was this a scam? No. But the education was worthless and they teach you subjects that will only hinder your success. Furthermore, it was a legitimate Forex rip off.

Through the last 4 years, I have seen it all. Do you remember when Trading Robots were actually expensive? I sure do. Now, these Trading Robots are tweaked, repackaged with another Hollywood Horror Movie title and sold on a new website. These Robots never work. And, by the time you figure out that this robot doesn’t know anymore than you do about trading, your Money Back Guarantee already expired, or the website no longer exists. Lately, I have seen these Robots sell for $297, $157, $97 and the latest was $67. I guess the 7 is the “LUCKY 7″. You’re lucky if you make a consistent profit. I believe the only successful Expert Advisors are the ones that developers constantly tweak and readjust the Robots setting. But, if your not a dedicated programmer, I would suggest learning how to trade manually.

The latest scams are misrepresented Live accounts. I will explain every aspect in detail from hiding their Account Balance, hiding their broker, hiding their Equity and so forth. When you review someone’s trading performance, it is more important than looking at their pretty inclined graphical representation of their account balance. The truth will be told in the Analytical Trading Summary and the Absolute gain. The Absolute gain, is the real profit that their account has earned. The account balance can be as misleading as the United States Unemployment rate.

Within the next few weeks, I will put aside some time to make a few videos that will point out the Red Flags. I am doing this because I have personal talked to 13 People within the last 12 months that have lost thousands of their HARD EARNED MONEY. Finding honest Forex Brokers are already hard enough to deal with. Placing your money with a reliable investment opportunity should not be.

www.mt4i.com
UPDATE: SEPTEBER 2010 – Fully Verified accounts vs. Semi- Verified Accounts – MT4i admits that trading history can be manipulated
Red Flag: Do not trust Any Trading results on this site: http://www.mt4i.com.

• This site allows traders to upload Hacked and modified HTML statements. Therefore, they can manipulate the trading results to display anything that they want.
• Track Record is not and can not be verified as authentic, original or Real.
• Trading Privileges can not be verified. Therefore, you can upload shared trading statistics and say it is yours
• Broker is not verified. Only Trust Results From Reputable Brokers. Alpari, Dukascopy, Fxcm, Ibfx, MigBank, CitiBank, GFT, large brokers, etc.

October 2010 Update
Have I mentioned Screenshots? Today I spent a few hours sending emails back and forth with a person who was advertising “Live one on one Training” for $100. He states that he will share his secrets within 90minutes and you will be on your way making money with only 10 hours of screen time a month. Sounds interesting right? He finally states that it is News trading, which requires special software with a monthly subscription fee. Sounds honest right? Well, I finally ask the most important questions once I realize what he is offering. Does he make money and why is he helping others for $100?

He sends me a screenshot of his Myfxbook Monthly Bar chart graphs. He doesn’t provide a link to his system page, but when he sent the screenshot, he forgot to capture only the bar chart and not the URL.

I visit his Myfxbook member’s profile
• He is a new user
• His trading system is private
• There is absolutely no information on his profile
• He has never made a single comment

Still Interested? Well by now, I knew this was another scammer looking to prey on the unexperienced. I’m not done though. I asked him to verify his trading once again, and he sends a screenshot of an Excel spread sheet with his monthly gains for the last 6 months. Hmmm. He has a System on Myfxbook, but he would rather show me an excel spread sheet to verify his trading history. In conclusion, if anyone is advertising anything, make sure the results are not based on screen shots (images) from their computer.

MetaTrader Brokers: Not all, but some MetaTrader Brokers are dishonest making it impossible to make money over a period of time. Gain Capital has been sued for using a Virtual Broker Plugin that manipulates trading conditions (Price Slippage) in their benefit. Currently, FXCM is in a lawsuit for the same malicious practice. Beware, Brokers Cheat Traders. It has been Proved.

MAY 2011 UPDATE

MyFxBook.com has increased transparency by enforcing that all live accounts must display their Broker. Why is this important? With over 300+ Metatrader Brokers to choose from and with the unlimited Broker Privileges associated with MetaTrader, they can manipulate trading history documents within the MetaTrader Platform. Therefore, spoofing the actual results of an Expert Advisor can easily be done.

DECEMBER 2011 UPDATE

Three more subjects that we must cover are Martingale , Grid, and arbitrage trading systems as these systems often only work in the short-term.

Abritrage Scam
Here’s an article on a Arbitrage System that uses a Scam Broker in Panama to grant itself access to Allowed Arbritage. Oh by the way they manage accounts and advertise on Forex Peace Army.

Arbitrage Robot Scam