Fraudulent forex…another view: 04.11.2011

Will the fraud ever end?

The fraudulent side of forex trading was revealed in recent weeks in just some of the following blogs and articles:

• Inside the Currency Broiler Rooms, Joshua Brown, The Reformed Broker, April 9.
• Pitfalls of the Currency Casino, Andrew Bary, Barron’s, April 9.
• Foreign currency trading is easy – an easy way to lose money, Nathaniel Popper, Los Angeles Times, April 3.

Hurray for honesty! In my recent book, Diary of a Professional Commodity Trader, this is what I had to say about some retail forex firms: 

“Forex dealers who rip off their speculative clients know who they are. I know you are. I am not naming names, although I could. You are abusing small speculators. Shame on you! Stop it! (pg. 136)

I give the above cited blog postings and articles credit for something I should have done – and that is naming names. Joshua, Andrew and Nathaniel, I give you honor.

I’ve been holding onto two other examples of outright fraud that I have intended to write about in this blog. The time is right! One of the examples deals with forex, the other with S&P trading. Both are examples of unscrupulous firms offering novice retail customers enticing trading systems that will never fulfill their promises.

SmartTrading.com

The first one, from a firm calling itself SmartTrading.com, offers a 20-fold return in the first year of trading in forex and S&Ps. Here is a copy of SmartTrading.com’s email promotion.

We longtime traders have really missed the boat! While we have worked hard to make 20% or 30% or even 50% rates-of-return (even having some losing years along the way), we are missing out on the Mission Million Money Management course that is offering 2,000% returns.

TradeSavin

Do you think that a 20-fold annual trading return from SmartTrading is excellent? It’s peanuts compared to what TradeSavin is offering aspiring novice traders. TradeSavin will take our hands and walk us through the tricks of a 40-fold annual return in the S&P market. Imagine that – we can turn $5,000 into $200,000 in just the first year.

It is important for everyone to understand the significance of such a powerful rate-of-return. At this advertised performance rate, by the end of the third year I could be #41 on the world’s wealthiest persons’ list. And just one year later I would be 10 times wealthier than the Carlos Slim family, presently ranked number one.

Of course this does count for the taxes I would need to pay the IRS. But I am generous. By the end of fifth year I would have enough money to pay off the entire national debt. By the end of year 8 or 9, I would be the sole owner of the world’s currency supply. Talk about cornering a market!!!!! This would be the ultimate LONG position.

I challenge the folks at SmartTrading and TradeSavin to reveal IRS tax forms 6781 showing that they have produced the results they so generously offer the public with at least $5,000 of their own mooney for at least two straight years .

In my opinion, these sham operators don’t belong on the world’s wealthiest list – they belong in jail!

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