A colleague received an email a few days ago flogging the wonders of forex – trading in the foreign currency exchange market. Here’s part of the email:
“You know, you can make forex traders work for you giving you around 1% per day. Professional company offers managed Forex trading accounts. It means: average returns of 1% per trading day; almost no time and no trading skills required; protection against trading losses; real-time Forex trading sessions; full control of your profits and many other features to take the most of managed Forex trading accounts .…”
My colleague forwarded the email to me with her realization that the one per cent a day return boasted about equates to roughly 30 per cent a month. As she puts it, “Talk about too good to be true!”
Now, I am not saying that this is never possible but is it likely that such returns are commonplace? I highly doubt it.
Before you get involved in the forex market, you should know the risks. We explain how complex and volatile this type of trading is and also warn people about forex scams.
Foreign currency trading is a favourite ruse of fraudsters to make claims and promises about exorbitant investment returns. Just recently, an Oregon woman was sentenced to five years in jail for bilking $2-million US from 20 investors by promising them that she would generate profits for them in the forex market. It turned out she was running a Ponzi scheme for the most part. Closer to home, the Manna Ponzi scheme also enticed investors with the promise of using FOREX as a method to generate “double-digit monthly returns.”
A few final notes about the email my colleague received: First, it was unsolicited. Second, there’s a mistake in the message.
“…many other features to take the most of managed forex trading accounts .…” Shouldn’t that be make?
Both are signs that it may be part of a spam campaign. Be careful.
Time and time again, we find out that a financial advisor who has been caught red handed doing a ponzi scheme has been living a lavish lifestyle. Do you remember Ian Thow? He had a huge house, an airplane, and donated generously to charities on Vancouver Island. Bernie Madoff lived high on the hog too… […]
As part of the Canadian Securities Administrators, the BCSC published proposals today that aim to provide investors with personalized information about the costs and performance of their investments Patricia discussed this topic from a client perspective in an earlier blog titled: What information must a financial advisor give to their clients. As you can see […]