Managed accounts
- Thread starter timoth123
- Start date
Managed Accounts BEWARE
Greetings,
This is probably more information than you're looking for, but I want to post this, because I have been researching managed account options for four months with legacyibroker.com and have come to the realization that most all claims are fraudulent or misleading. I started down the IB path simply because I was already doing the research and then I learned that you don't have to have a securities license to sell forex managed accounts. Well all of that is true (straight from the CFTC's mouth - feel free to call them as I did), but in the very near future a Series 3 will be required.
Why do I say this?
Because what this means is that here in the next couple of months 95%+ of all these promoters' web sites are going to have to either be a NFA member, operate outside the U.S., or be in operation illegally. This is becoming a huge issue and one that will likely come under the covering of FINRA entirely.
My family and friends were scammed out of $1M from get this - a pastor - who was allegedly trading forex. The biggest scam to look out for is the offering of a "Managed Account", but your account is being opened, not directly with the broker AS IT MUST BE, but with the trading company itself (or person). This is NOT a managed forex account, but a hedge fund that is operating illegally, because if they were a hedge fund then the following would apply:
Remember that in one way or another most performance postings are hypothetical and you have to persistently ask the right questions. Sometimes in the "past performance is not indicative of future results, blah, blah, blah..." there will be some CFTC required hypothetical disclosure - perhaps on a separate web page.
For example: managedforex.org - nice people, they have live data, but there postings show the year 2007. Only after a number of calls and pushing the process for our own compliance oversight for FXCM did we come to find out that there is no 2007 "control account" to review, because live trading began in early fall 2007 plus none of the numbers on the web site are actual posted returns. We now have to change our website and promotional material as well.
Bottom line: until the Congress makes a final ruling forex remains the wild wild west and only places like forexbastards & forex peace army will protect the Ma' & Pa' investor. Right not Title 71 says that the CFTC has exclusive jurisdiction over forex, but several circuit courts have ruled where the individual state's own securities department had rightful jurisdiction. A friend of mine was on the phone with the NFA last week for over an hour and had the lead council attorney admit that when it came to forex that they had no true authority. As it stands the only current laws pertaining to forex fall under basic fraud provisions, but who enforces fraudulent actions? We're still waiting for a case to hit the Supreme Court before anyone will actually definitively know.
Keep the faith! / Ask questions! / Get live data!
Greetings,
This is probably more information than you're looking for, but I want to post this, because I have been researching managed account options for four months with legacyibroker.com and have come to the realization that most all claims are fraudulent or misleading. I started down the IB path simply because I was already doing the research and then I learned that you don't have to have a securities license to sell forex managed accounts. Well all of that is true (straight from the CFTC's mouth - feel free to call them as I did), but in the very near future a Series 3 will be required.
Why do I say this?
Because what this means is that here in the next couple of months 95%+ of all these promoters' web sites are going to have to either be a NFA member, operate outside the U.S., or be in operation illegally. This is becoming a huge issue and one that will likely come under the covering of FINRA entirely.
My family and friends were scammed out of $1M from get this - a pastor - who was allegedly trading forex. The biggest scam to look out for is the offering of a "Managed Account", but your account is being opened, not directly with the broker AS IT MUST BE, but with the trading company itself (or person). This is NOT a managed forex account, but a hedge fund that is operating illegally, because if they were a hedge fund then the following would apply:
- The company would have to be a registered investment advisor.
- The investment advisor representative soliciting you would need to have a Series 65 license.
- The BIG POINT - CUSTODY, they would have to be a hedge fund because they are taking custody of your funds, which means that they are only allowed 35 non-accredited investors (people with a net worth under $1M USD) and they are NOT allowed to charge performance fees on these small net worth clients.
Remember that in one way or another most performance postings are hypothetical and you have to persistently ask the right questions. Sometimes in the "past performance is not indicative of future results, blah, blah, blah..." there will be some CFTC required hypothetical disclosure - perhaps on a separate web page.
For example: managedforex.org - nice people, they have live data, but there postings show the year 2007. Only after a number of calls and pushing the process for our own compliance oversight for FXCM did we come to find out that there is no 2007 "control account" to review, because live trading began in early fall 2007 plus none of the numbers on the web site are actual posted returns. We now have to change our website and promotional material as well.
Bottom line: until the Congress makes a final ruling forex remains the wild wild west and only places like forexbastards & forex peace army will protect the Ma' & Pa' investor. Right not Title 71 says that the CFTC has exclusive jurisdiction over forex, but several circuit courts have ruled where the individual state's own securities department had rightful jurisdiction. A friend of mine was on the phone with the NFA last week for over an hour and had the lead council attorney admit that when it came to forex that they had no true authority. As it stands the only current laws pertaining to forex fall under basic fraud provisions, but who enforces fraudulent actions? We're still waiting for a case to hit the Supreme Court before anyone will actually definitively know.
Keep the faith! / Ask questions! / Get live data!
FaidaForex
Banned spammer for FaidaForex
- Messages
- 5
Hi Tim,
How is it going with your search for a forex managed account? Inbox me and I can recommend one I use.
Regards
FF
Digging up a thread from 2008 to start spamming. Spam Cat thinks that might be a record for being a lame spammer.
How is it going with your search for a forex managed account? Inbox me and I can recommend one I use.
Regards
FF
Digging up a thread from 2008 to start spamming. Spam Cat thinks that might be a record for being a lame spammer.
