Between 2005 and 2007 before North Finance changed their name to FXpro, I was the only Introducing broker for them in Nigeria, We have a percentage on every deposit on all accounts from Nigeria. Sometimes in a month, our affiliate earning might be more that $5000. We also lost more than $150,000 to them. So I know what I am talking about. Read carefully and make your decision.
1. You are not trading with any bank
You are not trading with any bank. You are trading with a software. Unless you are Kasparov the Russian chess player who beat the computer, you cannot win with the forex software. The software was programmed to defeat you and to trick you also. When you are doing demo trading, you will be making money, but the moment you fund your account you will be losing.
2. Brokers make money when you are losing.
Brokers make money when you are losing. So they will do whatever they can, to make sure you are losing. There was a time, I and my partners were really making so much trading the news. We trade once in a month. We were hedging out the trade. Hedging means and buying and selling at the same time. The financial news comes out every last Friday of the month. At the end of the news, the market will run riot; it might go down or up to 200 pips. So when we hedge the trade, we will put our take profit on buy and sell at 50 pips. Within 60 seconds, we would make $50,000. Brokers were losing terribly, and some of them forbid you from hedging. Some will allow you to hedge but instead of taking your profit at the point you want the software will not allow it, and you would lose terribly. When you complain to them, they will tell you the problem is not from them.
3. Some brokers spend your deposit.
I watched American greed, a series about financial fraud in America. I watched an episode where a forex broker was caught gambling with the traders’ deposit in a casino. He said the reason why he always spent the deposits was because he knew that 95% of online forex trader will eventually lose the money. So the moment they deposit the money, he would take 70% out of the money. That is why even when you made money and want to withdraw your deposits, they will delay you or will not give you back your money.
4. No expert can predict the market.
The market is a volatile market, and no expert can predict the market. A lot of experts are making money through the book they sell, not from trading. Peter Bain considered himself an expert. I bought his books and DVD. I was shocked when I learned that he does not trade. All the Fibonacci prediction will not work on the system.
5. They are in offshore countries.
They are either in Cyprus or other countries where they cannot be persecuted for fraud. They cannot be extradited to any countries for prosecution. Check their addresses and you will agree with me.
6. Forex Brokers even warn you about losing your money.
You have been warned, never trade with money you cannot afford to lose. I copied the below warning from a broker site.
High-Risk Investment Warning: Trading foreign exchange and/or contracts for differences on margin carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss in excess of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose.
7. Forex signals are not reliable.
We bought a lot of signals from the so-called experts when we are trading forex. None of them worked. If they are working they will not be selling them. They will be using it to make money.
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