Interesting broker aciton.

[Ravique]

I have an interesting story for you guys.

Shortly one Latvian forex broker contacted me. They asked me, whether I want to work with them as a trader, trading money for some particular
investor. They got my info from some web site, I don`t know.

I asked them, why do they think that my trading will be profitable, why I got so lucky to get their offer?

The answer was that before the real work starts, they offer an educational period. Like a period of seminars.

I told them I think about It, and started researching. I called some people, searched the Internet, and the here were the results, here is how they work:

1).They call to people who are somehow interested in Forex trading (by looking in the web, or just posting job advertisements for the position of private trader).

2). They tell you about how much money you will make, how good you will be at trading, how they will find investors for you.

3). They offer you an educational period, and promise you that you will get your own investor after this period

3a). Afterwards you find out that this education costs money, materials cost money, but you are so much in filled out with this idea, that most people don`t think about it, and pay the money.

3b). I have found a person who took that education, and talking to him I found out that this so called program is just a general intro to forex trading. And the teacher, who is reading the lecture, he knows nothing about real trading, he just reads the materials he got.

4). Ok, the education is finished. If you are lucky you get and investor ( I will tell about how they are looking for investors below). Or If you are not so lucky, they tell you that there are no available investors right now, but they will show up shortly . Meanwhile you can try opening your own account ( min. deposit 3000$ ) and trading for yourself. You passed a super good education program, you are a certified trader, you will do good.

5). Their investors, are just people with some amount of free money, who know little about investments and trading and stuff. They just tell them how big profits they will get, and how good traders will work with the invested money, or something like that. Simply a nice fairytale. And some people buy it, and give them money.

6). So this is the part where we calculate their possible ways of income. They clearly don`t bother about good education, so they could live from spreads for a long time, they get the spreads from fools who give them money, either traders or investors. Also they get money for the "education".

I don`t think that you can generate a lot of money this way, you will need a really big amount of fools to participate in this action. Not just fools, fools with money.

Maybe they do it just to show their activity as a broker. Opening accounts, getting spreads, something like that. And the real profit is generated by money laundering.
I know that this is possible, I know a person who owns a brokerage in Moscow and does this.

Probably they do all this activity to show that they are working as a broker,to get the interest off them, I don't know, but the process I mentioned in this post seemed interesting to me.

[scorpion]

This is really suspicious in a way that they promise investors, and the edu is only the intro to forex then you're certified trader.

Maybe the investors are the ones who need to launder the money. Pretty much a partnership with this broker to lose some and bank out laundered cash. Casinos are now being the haven of money launderer. I hope it won't be forex in the future.

[Ravique]

I haven`t seen the certificate, but I think it could be just a loud word for a paper they print when you passed their education. Getting a teaching authorization is quite easy.

It depends on the laws in a specific country. For example. Laws connected with profits gained from trading forex, laws connected with the brokerages, and investments overall are very poor here, in LV. And then weaker is the law base, then more ways there is to launder money.

[yamunakas]

I don`t think that you can generate a lot of money this way, you will need a really big amount of fools to participate in this action. Not just fools, fools with money.

there are enough fools in latvia.may be they can earn good cash

[Ravique]

Not enough. In small countries like Latvia, Lithuania and Estonia, where the popularity of trading in general, forex especially is pretty low, it is hard for a broker to make a living. Banks offer services for big clients, or companies, but small brokers, for individual traders are having a hard time, I am sure. They have to think of some schemes, or tricks to make a decent profit. Some use the customers money to open their own positions, others do something else.

[Pipsqueak]

Just a question it may not be related to this thread but what is the "fix" at a certain time forex traders are talking about?

[Pipsqueak]

Never Mind it has nothing to do with brokers It has to do with the banks. So not related to this thread.

[Libros]

Originally Posted by Ravique

Not enough. In small countries like Latvia, Lithuania and Estonia, where the popularity of trading in general, forex especially is pretty low, it is hard for a broker to make a living. Banks offer services for big clients, or companies, but small brokers, for individual traders are having a hard time, I am sure. They have to think of some schemes, or tricks to make a decent profit. Some use the customers money to open their own positions, others do something else.

hehe of course they 're not live from spread. even if the spread for eur/usd is 10pip.
what the more potential profit than "TRADE AGAINST FOOL TRADER AND THE GAME IS HOLD BY THEIRSELF. "

like open casino in a jungle

even if in a tiny percentage there is a successfull trader on that development country in a very wide spread they will just do pass the order to interbankfx northfinance etc.

hei even i can do it for you

maybe because of that dirty trick forex is like horror in my country for local investor .

but i didn;t blame that broker on my country.
because of goverment rule they cannot ticking the spread.
because goverment didn't want people to be speculant of course.


in my country minimum spread is 6 for all currencies. can you trade that? i cannot. because of that gbpusd is most applicable currencies to trade.