How to avoid forex scams

Well if you have been trading forex as long as I have been trading it (+3 years now) and also if you started form the scratch without a mentor you would have come across your own share of forex scams as much as I have, this includes; system sellers, robot sellers and even some of the forex brokers. It seems like everyone is after your money and are ready to do all it takes to con you out of it. Their attention is not directed at you making money from forex but at them profiting from your ignorance.

I wouldn't be making a long speech but after a few episodes with some of this and that I have arrived at two ways to determine if you are being fooled or if that is the real deal:

1) No one (and I repeat no one) would sell you a system or robot that has the potential of making more than 1000 pips a week for just $99! Even only a few would be ready to part with it at $999. I would begin buying into the idea if the price started running into thousands of dollars. Most of the best traders out there would like to keep you permanently in their clutches by keeping you ignorant so they offer to manage your account for you instead.

2) If you come across this then it would be rare and you must have been favoured to find them. Genuine traders who would give you systems that worked for them at no cost. Now the thing is that they have perfected trading with these systems and have modified it almost to perfection so the are ready to part with the initial versions of these systems they traded with.


So the next time you are about to buy into a system or a product said to make thousands of pips per week (or even per day!), make sure you ask yourself, is it free or is it costly? If it is neither of these then most likely it might be a scam!

IMO, most commercially available systems today are simply optimized systems. Then the creator releases a 'version 2' which is simply a reoptimization of the original EA, maybe a small modification here or there, but overall just a re-fit EA.

This in itself would not be necessarily a bad thing IF the optimized settings of the EA would continue to work (profit factor > 1) at least for a certain amount of time and re-optimized / modified versions would be available on a regular basis.

Easy. If it sounds to good to be true it probably is.

"Most of the best traders out there would like to keep you permanently in their clutches by keeping you ignorant so they offer to manage your account for you instead."


Since every sold/published EA gets decompiled in no time, managed account is just a safe way for the creator to let others participate on the success of a good system.

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http://www.myfxbook.com/members/pc8multifx

That argument works only if the price is low enough. But still, even a continuously optimized EA isn't guaranteed to beat the market

I really dont see the point of this thread. There are no systems at $99 or $10,000 that can beat the market with no user or trader intervention.

I work for a large bank's trading floor in London and have for various others around the world. They employ systems people with very deep budgets and they are along way off of the fully automated system.

If someone has/had developed such a system then banks would not be employing myself and others.

Wake up people.

This is already included in my IF. But i also haven't seen any other thing so far that is guaranteed to beat the market. Such a "thing", if it existed, would be nearer to the ideal holy grail than anything else.

Nothing BEATS the market!

You may be successful for a year, maybe even 10 years, but eventually the MARKET will win. Let's hope you retire before the MARKET takes IT back! Nothing is guaranteed and there are no "BLACK BOX" systems that can beat the market!

easiest way to avoid a forex scam: dont buy ANYTHING.

use your brain. put some work and effort into actually learning.

I dont understand why people keep buying these robots. True I was tempted to buy one, but then logic kicked in, if you make 30,000 in 5 months why are you offering this to me for less then 200$?

I mean its like telling me, ill pay you 70,000 every year if you give me 200 dollars now?

I agree!!! The first thing we know about forex is the volatility but then comes a robot that offers 100% profitable, all ensure to make 30000 a month and everybody goes running to buy it. You cant believe those ads, they don’t make sense.
An interested question comes to mind… if you had the “magic robot”…would you sell it, or just shut up and use it?

Maybe they don't have any of their own money to invest themselves and can't get investment from elsewhere due to various reasons.

But, i stated in a previous post that fully automated bots can't win 24/5, if large trading floors (Banks) can't do it then I doubt any retail trader can build one.

I bought a thang called Market Raider from a guy called Ian Williams which serves me up forex setups very regularly - and it is then up to me to assess the strength of the set up and choose what to do next. It saves me hours of trawling charts, but left to its own devices would have broken the bank a thousand times over. I AM NOT RECOMMENDING IT here. I think as a time saving tool some bots are quite useful - but nothing will do the best decision making for you but you! That's why bankers deserve their bonuses!

Good post.

Agreed!

We got burnt buy a "company" called EagleFX for $9900 that use a robot system. Initally, we wanted to get into currency trading but the wife and i work long hours and don't have the time to put into it. They took us through the demonstration with AUD/YEN and to use their advise not to set it off on "red" calender days and they said for us to set it off around 8:30am till 4pm. Both the wife and i start work earlier than 8.30am, so they said their software has a delay function, so it would be perfect for us.

So we bought it, and the delay function didn't work. About 6 weeks of dramas later Eaglefx got back to us and admitted it didn't work and their excuse was it was because of the US market opening. So then they told us the only way we can set it of via an iphone or another computer at "around" 8:30am, which neither of us had access to.

This was the reason we bought the product in the first place and it didn't work. It also had a function that supposed to stop trading automatically at the set time that only works very randomly.

Also, during this time when we were able to set it off, we had already lost our first $1000.

After confronting Eaglefx about the problems, they suggested we trade on the US/AUD market at night time and within a short period of time we lost almost $3000.

After these massive losses, and not being able to afford any more, we were running paper trades (whenever we were in a position to do so) on the AUD/YEN and noticed when we were comparing their results, our results weren't the same. Theirs were running at a big profit and ours were running at a massive loss. How is this so when we are setting them off at the same time? Obviously a scam.

Buy now we were asking EagleFX for our original $9900 back because their product is faulty and wasn't what we had signed up to purchase. They declined, saying that they gave us options to get around the problems. We said the secondary options are unworkable and no good to us, we want our money back. Their "legal team" said no again.
So we have know filed a complaint to the "department of fair trading" and sent them our records and emails. Now we have to play the waiting game and see if we get our money back. In the mean time i will be warning as many people that EagleFX is a scam.

I have attached an example how bad their system and advice is. Over 3 weeks there was 3 available trading days (going off their advice). Each of the 3 days lost for a total loss of 97 pips ($970).

A 10v+ FF member Jag1966 masquerading as 'traderteacher' on youtube. I didn't get fleeced myself but personally, it sickens me that people that you have gained some respect on trading forums such as FF turn out to be total scum.

If you have been ripped off by this guy you should take legal action. Do not slack on this. These people need to be brought to justice.

See link for scam details: http://www.forexpeacearmy.com/forex-...r-con-man.html


Here are his details:

DARRYL GISBURN BYWATER

Address

SUNNYRIDGE
PARKWAY DRIVE, SONNING
READING
BERKSHIRE
RG4 6XG


Information

Date Of Birth: Oct-1962
Age: 50 Years
Nationality: BRITISH
Country of Residence: UNITED KINGDOM
Occupation: WEB DESIGNER

He was involved with another company that was set up which had this address which may also be worth checking out:

Hinxwell Ltd


DEWMEAD FARM NEW INN ROAD
HINXWORTH
BALDOCK
HERTFORDSHIRE
UNITED KINGDOM
SG7 5HG

Gosh. I don't doubt your investigatory work but, just out of interest, how do you know it's Jag1966?

He advertised his services on FF and gave out his website address. He's since taken it down of course when his unluckly clients caught on and started asking questions...