Don’t have time to learn how to trade forex? Want to be part of the Billionaire’s Club?
If you answered “yes” to these two questions, the forex managed accounts scam is the fraud for you!
You can call our hotline at 1-800-4XFRAUDS!
This scam operates by having an investor “invest” with a “professional” trader, who trades the investor’s capital for a percentage of the profits.
This can sound appealing, especially to beginners who have no idea what they are doing or don’t have the time to learn.
They figure, “Well, he’s a ‘professional’ – he must know what he’s doing! It’s 100 times better than if I traded by myself!”
The problem with this is that the user is placing complete trust of his/her money into the hands of a complete stranger.
In a way, it’s like taking candy from a baby.
In many cases of managed accounts, the manager actually appropriates funds towards unrelated luxury items such as cars, islands, and castles.
When finally caught, the manager is not able to pay back the whole amount of stolen capital resulting in unhappy clients and multi-million dollar lawsuits.
Yes, we know it seems extreme but, more often than not, it happens and people can lose their entire investment.
Not ALL forex managed accounts are bad though. Some do have many years of trading experience and are well-qualified in trading real money, but that’s more the exception than the norm.
Some trading platforms even offer an option to let traders act as managers using the account structure of the broker.
This prevents an individual from taking funds to spend on New York Knicks tickets, trips to the Bahamas, or a Porsche Cayenne.
While this is a safer option compared to letting an independent manager trade your money, you still lose out on the priceless knowledge and experience gained through studying forex trading.
If there is one thing we want to stress to traders, it is education. There is simply no replacement for experience gained through personal studying and trading.
In the end, the only surefire way to be profitable in the forex market is to be knowledgeable, practice, and stay disciplined.
We’ll leave you with just one question.
Would you trust your hard-earned money with a complete stranger?
If you’re still itching to try out forex managed accounts, make sure you do your homework and find a CREDIBLE manager.