Are Forex Investment Groups who use your money to do their trading scams? ?

Question

they say you can make up to 22% a day (compounded). I ran numbers that show a one time investment of $30 over 15 weeks (adding all your daily profits to the principal) can yield over $1 million a week (if you reinvest every cent). Seems too good to be true, yet maybe worth risking $30 for? this is the site... i joined to see if I could get more info but haven't paid anything yet. http://www.ffincome.com/index.php?ref=Jetton

Answer 1

Beware of Foreign Currency Trading Frauds:

The advertisements seem too good to pass up.  They tout high returns coupled with low risks from investments in foreign currency (“forex”) contracts.  Sometimes they even offer lucrative employment opportunities in forex trading.

Do these deals sound too good to be true?  Unfortunately, they are , and investors need to be on guard against these scams. They may look like a new sophisticated form of investment opportunity, but in reality they are the same old trap – financial fraud in fancy garb.  

Forex trading can be legitimate for governments and large institutional investors concerned about fluctuations in international exchange rates, and it can even be appropriate for some individual investors.  But the average investor should be wary when it comes to forex offers.

The Commodity Futures Trading Commission (CFTC) and the North American Securities Administrators Association (NASAA) warn that off-exchange forex trading by retail investors is at best extremely risky, and at worst, outright fraud.  

How do the scams work?

Forex scams attract customers with sophisticated-sounding offers placed in newspaper advertisements, radio promotions, or on Internet sites. Promoters often lure investors with the concept of leverage: the right to “control” a large amount of foreign currency with an initial payment representing only a fraction of the total cost. Coupled with predictions about supposedly inevitable increases in currency prices, these contracts are said to offer huge returns over a short time, with little or no downside risk.

In a typical case, investors may be assured of reaping tens of thousands of dollars in just a few weeks or months, with an initial investment of only $5,000. Often, the investor’s money is never actually placed in the market through a legitimate dealer, but simply diverted – stolen -- for the personal benefit of the con artists.

Investigate before you invest:

Investors should make sure that anyone offering a forex investment is properly licensed and has a reputable business history. The public can obtain information about any firm or individual registered with the CFTC, including any actions taken against a registrant, through the National Futures Association (NFA) Background Affiliation Status Information Center (BASIC), available on the NFA website. You can also find out if someone is registered by calling the National Futures Association at 1-800-676-4632.

...If You Want to Learn More about Successful Trend Trading In Forex Take the First Step, By Going Here: http://www.urlpire.com/?MALFY  

Answer 2

Just My Two Cents...

1. There are neither company address nor phone# on the web site.

2. The last paragraph on page http://www.ffincome.com/about.html are copied from http://www.forex-ratings.com/avafx/  

Those guys missed the AVA company name or just didn't bother to remove it. :0)

"Founded and operated to provide the Ava client with the most personalized and effective service available, the support center utilizes proprietary state-of-the-art support systems.. "

I hope you didn't risk too much money.

PS. IMHO, you should notify FBI or smth before they get away with your money.

Answer 3

The trading group isn't necessarily a "scam", but the chances of that type of consistant return is tiny....you have more chance of winning the lottery.

I traded (gambled) Forex for over 5 years...it is VERY high-risk.

The opportunity IS there to make huge returns an a daily basis...it's just EXTREMELY difficult to acheive in reality.

My best day....I had a 1100% return within two hours.  That's 12x my original money...in TWO HOURS!  Within 48 hours after that, I had lost it all.

It's a 24 hour a day market...always something going on..It's addictive and dangerous!!

If you want to learn all about forex, a really good (informative and funny) site is:

http://www.babypips.com/

click on "School" and start with kindergarten.

As far as joining and putting money in an investment group?

There's only one thing to say about it:  If the money managers of the group were any good at all.....they would NEVER be asking for $30 investors. They'd be looking for million-dollor investors.

But for only $30....you may want to try it just for fun.

Or, if you are interested in learning all about it (and there's alot to learn), you can actually open your own trading account and play around.

FXCM is a reputable firm, and they offer a "micro" account that you can trade with. The minumum to open that account is only $25.

But if you did something like that....learn what you are doing first, before trading.  Again babypips.com is a good resource.