One of the biggest scams in the Forex market these days doesn’t involve software programs, brokers, useless ebooks, or any other product. It’s much more sinister. It’s what’s called Employment Ads for Traders.
What are Employment Ads?
Just what they sound like, they’re ads from companies which promise jobs for Forex traders. The money for the trading itself is supposed to be firm capital, money that’s entirely supplied by the company.
The poor trader who answers the ad is convinced by the company to take part in their training program (which can be free or paid for) with the guarantee that he or she will become a much better trader because of it.
During the training process which happens on a demo account with no firm capital at risk, the trader is continuously encouraged by the employing company and told that his account shows significant gains. This has nothing to do with the real ability of this trader, of course. It’s just a way to entice him to start trading with real money.
This trader, elated by the thought that he can make a large sum of money, begins trading not with firm capital, which is never given him, but with his own money, using the company’s own trading platform.
This is how they make money: they get the trading fees as the broker. Either they act as the broker themselves or they cut a deal with an existing broker and get a share of the spread. For each trade that this unsuspecting person who just want to learn trading makes, they get a commission.
Of course, since this poor trader hasn’t really acquired any real skills, he has little chance of profiting. In the long run, he will lose his money. At that point, he will have no job with this company and a much smaller bank account.
Then, it’s on to the next unsuspecting wannabe.
Don’t fall for this Forex trading scam. It’s one of the lowest I’ve heard of.
John
p.s. I’d love to know what you think of the following video which was supposed to be leaked by some mysterious testing group: Leaked Forex Video
What do you think?
