Unregulated brokers & Mam/Pamm providers | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

PAMM Reviews: What are your good or bad experiences using PAMM? 16 replies

Money Manager License (for PAMM and MAM systems) 10 replies

France’s regulator warns investors about 23 unregulated Brokers 7 replies

any good brokers who has Lamm..not PAMM? 1 reply

How Brokers and Liquidity Providers rip you off 11 replies

Attachments: Unregulated brokers & Mam/Pamm providers
Exit Attachments

Unregulated brokers & Mam/Pamm providers

  • #1
  • First Post: Edited 9:08am Aug 11, 2016 8:49am | Edited 9:08am
After the going on's on various other threads, I was wondering the following point.

Is it possible for Mam/Pamm signal providers to set-up accounts with an un-regulated broker and then both have a deal where they offer to split any clients deposits once the Mam/Pamm signal loses?

If the broker is unregulated, there is absolutely nothing to stop phony myfxbooks being created by the mam/Pamm provider to show how great they are.

Then after enough clients have subscribed, the signals service just deliberately runs the account to zero and then claim unfortunate market timing.

Am I being paranoid or is the above a very like scenario?
  • #2
  • Aug 11, 2016 8:54am Aug 11, 2016 8:54am
Quoting LondonFx1
After the going on's on various other threads, I was wondering the following point. Is it possible for Mam/Pamm signal providers to set-up accounts with an un-regulated broker and then both have a deal where they offer to split any clients deposits once the Mam/Pamm signal loses? If the broker is unregulated, there is absolutely nothing to stop phony myfxbooks being created by the mam/Pamm provider to show how great they are. Then after enough clients have subscribed, the signals service just deliberately runs the account o zero and then claim unfortunate...
Very likely scenario...

Performace results through non-reputable brokers MEAN NOTHING.
  • #3
  • Aug 11, 2016 8:58am Aug 11, 2016 8:58am
Quoting MasterGuru
{quote} Very likely scenario... Performace results through non-reputable brokers MEAN NOTHING.

Thank you. I thought as much but was interested in getting some other point of views.

So a warning to everyone, never ever trust a Mam/Pamm who insists you open an account with a non-regulated and non recognized broker.

I would even go so far as to say never ever trust anyone (including various "trusted" site operators) who set-up Mam/Pamm with non-regulated brokers. You will have zero knowledge of any backroom deals that have been worked out.

Only the broker and the Mam/Pamm originator will win.
  • #4
  • Aug 11, 2016 9:44am Aug 11, 2016 9:44am
Yes exactly bro, I opened thread with same subject few days back....

Hi,

I got many emails to start PAMM or MAM accounts, so I did some research over it and found signals are far better for subscribers over PAMM or MAM account, here are my reasons.

1) Followers have full control over the lot size and which trade they want to follow and which not.
2) Signals are quite cheap compare or percentage sharing in PAMM or MAM account.
3) Subscribers have full control over detaching account from signal providers if they want to.
4) Option to follow multiple signal provider at the same time (you can keep balance of aggressive and passive signal providers in your portfolio to keep your account balanced)
5) Compare to PAMM and MAM signal providers generally provide high rate of returns.
6) You have choice to choose your own broker unlike PAMM or MAM account where you have to go where your manager wants to put you.
7) You as a subscriber is always anonymous specially if you are following with big money and if you dont want to disclose your identity to your manager.
8) Safety of your funds especially when you have freedom to choose your own broker in your own country.
9) Most developed nations ask certificates to manage accounts, but many dont have it, so they go and open accounts with less credible brokers, and in such situation there is high possibility of manipulation in price and withdrawal process.
10) You have control over your own decisions.

http://www.forexfactory.com/showthread.php?t=601673
We are proud to be most consistent signal provider in entire industry.
  • #5
  • Aug 11, 2016 9:50am Aug 11, 2016 9:50am
Quoting LondonFx1
{quote} Thank you. I thought as much but was interested in getting some other point of views. So a warning to everyone, never ever trust a Mam/Pamm who insists you open an account with a non-regulated and non recognized broker. I would even go so far as to say never ever trust anyone (including various "trusted" site operators) who set-up Mam/Pamm with non-regulated brokers. You will have zero knowledge of any backroom deals that have been worked out. Only the broker and the Mam/Pamm originator will win.
Not to mention that some brokers take off with all clients' funds...

Like Reza Mokhtarian of NZ-"regulated" Capital Trust Markets (CTS) did in 2015 with $500k+ client monies...

Even though CTS was "regulated" by NZ authorities, these authorities did NOTHING for CTS's clients and no funds were recovered. So being "regulated" often means nothing.
  • #6
  • Aug 11, 2016 10:29am Aug 11, 2016 10:29am
Quoting Eonfx
Yes exactly bro, I opened thread with same subject few days back.... Hi, I got many emails to start PAMM or MAM accounts, so I did some research over it and found signals are far better for subscribers over PAMM or MAM account, here are my reasons. 1) Followers have full control over the lot size and which trade they want to follow and which not. 2) Signals are quite cheap compare or percentage sharing in PAMM or MAM account. 3) Subscribers have full control over detaching account from signal providers if they want to. 4) Option to follow multiple...

Thank you Eonfx.

I guess such threads need to be kept alive in one way or another to warn people of the dangers of Mama/Pamms and unregulated brokers.
  • #7
  • Aug 11, 2016 10:34am Aug 11, 2016 10:34am
At least the protection works in the UK, when Global?, cant remember the full name crashed a few years ago, my friend got his money back ( account deposit) as they were a US company but regulated here.
  • #8
  • Aug 11, 2016 11:32am Aug 11, 2016 11:32am
Its even worse than you think:
I posted several times here a whole thread about Ryan O Rourke and Bank DirectFX http://www.forexpeacearmy.com/commun...irectfx.26488/ , who has made a career out of setting up entire brokerages (its no big deal, low cost to create an MT4 white label) JUST for the purpose of scamming people into putting money into his PAMM (with of course faked broker statistics that *seemed* legit because they had a myfxbook)....then he crashes the PAMM, intentionally, and keeps all the cash. Wash, Rinse, Repeat with a new name/domain/broker...I have watched him do this cycle at least 3 or 4 times. Latest I followed was Fortress Fund http://www.donnaforex.com/index.php?topic=16662.0;nowap
Then I couldnt bear to watch it repeat again, so I havent followed up. The threads above are long and have other branching threads, but I will save you the drama, he (and the entities) were all cons, no one got any money back, and everything I told people up front turned out to be true. A fun read, though.

ANYWAY, to repeat, with emphasis:
NEVER TRUST ANY PERFORMANCE STATISTICS ON ANY BROKER THAT ISNT KNOWN/TRUSTED.
This doesnt necessarily mean unregulated. Some of my best dealings were with FXPig and Tallinex, both unregulated. But they are know and trusted and have many reviews and discussions and long time users who report experiences - like me. And no, Im not an affiliate or IB.
forexfusiondotcom
  • #9
  • Aug 11, 2016 11:36am Aug 11, 2016 11:36am
true few myfxbook accounts have really new and unheard brokers.
We are proud to be most consistent signal provider in entire industry.
  • #10
  • Aug 11, 2016 11:59am Aug 11, 2016 11:59am
Quoting odysseus11
Its even worse than you think: I posted several times here a whole thread about Ryan O Rourke and Bank DirectFX http://www.forexpeacearmy.com/commun...irectfx.26488/ , who has made a career out of setting up entire brokerages (its no big deal, low cost to create an MT4 white label) JUST for the purpose of scamming people into putting money into his PAMM (with of course faked broker statistics that *seemed* legit because they had a myfxbook)....then he crashes the PAMM, intentionally, and keeps all the cash....

Thank you Odysseus11.

Interesting reading.

I had no idea such practices were so prevalent. Begs the question why authorities are not doing anything about it. I guess many operate out of locations where the, "law", can easily be bought. Or are the authorities in even Western countries so behind the curve they simply do not know how to regulate the retail market place?

Why are notices of such common scams not on the front page of every trading site like this so that people know what to look out for.

Just feels like the go to instinct with regards to any Mam/Pamm/signal is, "do not trust".

All boils down to simple fact that if someone is that good a trader, they'd be trading for themselves and not even bother with retail clients.

Buyer beware.
  • #11
  • Aug 11, 2016 12:07pm Aug 11, 2016 12:07pm
Regulated brokers dont let us open PAMM account just like that without certification, Eg IC MARKET they dont let you open PAMM account specially if person is going to operate from Australia.
We are proud to be most consistent signal provider in entire industry.
  • #12
  • Aug 11, 2016 6:13pm Aug 11, 2016 6:13pm
Yea, I think the issue is trusting an unknown broker.

Regulation doesnt mean a whole lot, but lets face it, the known brokers with a long history and thousands of clients are certainly not going to wreck their business to do a scam PAMM. Just avoid any dealings with a broker that you cant do extensive due diligence on and is not well known and trusted by the trading public.

Of course, even if the broker is trustworthy, that doesnt mean the PAMM manager knows what they are doing - but if they have a fully unlocked fully verified myfxbook you should have all the data you need to figure that out.

To answer why western authorities dont do anything, I have no idea. The guy I reported on lives in the US last I did any research, I think in his Mothers basement LOL. Someone who lost money (and many seemingly did) SHOULD pursue getting him arrested, but I did all I could do, it isnt my fight. Im sure doing what he is doing violates US federal financial fraud law, but really dont know any more than that, Im not an attorney nor in Law Enforcement.....The supposed (but fake front) brokers dont really exist except online and registered in locations without any regulation, usually.
forexfusiondotcom
  • #13
  • Aug 12, 2016 3:58am Aug 12, 2016 3:58am
Quoting odysseus11
Yea, I think the issue is trusting an unknown broker. Regulation doesnt mean a whole lot, but lets face it, the known brokers with a long history and thousands of clients are certainly not going to wreck their business to do a scam PAMM. Just avoid any dealings with a broker that you cant do extensive due diligence on and is not well known and trusted by the trading public. Of course, even if the broker is trustworthy, that doesnt mean the PAMM manager knows what they are doing - but if they have a fully unlocked fully verified myfxbook you should...

At least you tried.

I guess if in USA, those who have been scammed can get together and take a class action but I guess many are too embarrassed to come forward or simply do not have the financial means to start legal proceedings which can be very costly.

To paraphrase Donald Trump, "Perhaps one day someone will simply have enough and use the second amendment to take appropriate measures".

Until then, all we can do is try and keep up the good fight (losing battle I think).
  • #14
  • Last Post: Jan 19, 2017 6:56am Jan 19, 2017 6:56am
Finally, the day has come when Reza F**ing Mokhtarian, thief CEO of NEW ZEALAND registered Capital Trust Markets (what a company name, Jeeez!) has stood in front of a judge in Toronto, Canada charged by the Ontario Securities Commission. (Not a civil trial case!). Apparently New Zealand could not care less about the victims, so Canada had to step in... Why Canada...? Because it was Canada who gave home to this Iranian refugee...

He was arrogantly and blatantly messaging in his YouTube video to his victims (watch from timestamp 15:00) that they were so stupid that they could not even steal from others... Adding (quoting): "Good for ME!" while driving to the bank with the stolen funds (as stated by this ba**rd).

Well, I hope that we - the SOCIETY - can show him that even though we might be "stupid" to steal from others, but we are powerful enough to give him some time to think about it in a prison cell for a couple of years.

Even if I don't see my stolen funds again, I hope the judge will be on the victims' side and give him the maximum sentence: 4 years and 364 days in a high security facility.

And yes, that will be REALLY-REALLY GOOD FOR HIM! (Especially when he will drop his soap in the shower...)

Attached Image (click to enlarge)
Click to Enlarge Name: OSC Reza Mokhtarian.png Size: 45 KB
0 traders viewing now