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We the members of the Scam Investigations Committee of the Forex Peace Army have deliberated on all the evidence available to us and have reached a conclusion. It is our opinion that...
FPA member Carol Day had a managed forex account with 4xMaster. For a time, the account was profitable and she paid over $18,000 in performance fees. Later, all profits and over 60% of the initial investment was wiped out in a couple of days of bad trading.
When Carol tried to contact 4xMaster about the possibility of a refund of performance fees, there was never any response. The FPA attempted to negotiate on Carol's behalf, and also got no response.
We realize that account managers do not normally offer money back guarantees on their performance fees, so this alone isn't enough to declare this company to be a scam. We consider the failure to negotiate with a trader under these circumstances to be reprehensible, but would need to examine things further to see if this really crosses the threshold of scam.
What we do consider to be a scam is the fact that the 4xMaster website still states that the maximum theoretical drawdown is 20.4%. Carol also reports that after the first day of failed trades, she requested that leverage be reduced and her requests were ignored. Since no one from 4xMaster bothered to reply to the FPA, we accept Carol Day's version of events to be completely true.
We consider an account manager's failure to exercise proper precautions with client funds, especially when contacted by the client who requests greater care in trading to be a breach of ethics. We also consider the incorrect or outdated information on the company's website to be a serious breach of ethics.
Thus, we officially find that 4xMaster is a scam. We offer 4xMaster the chance to resolve this issue by correcting the company website and honestly negotiating proper compensation to Carol Day for the additional losses caused by ignoring her trading instructions.
We extend our sympathies to Carol Day for the loss of her money. We thank FPA Investigator Gerard fro his efforts on the case.
4xMaster is hereby blacklisted by the Forex Peace Army. We urge traders not to place money with this company. We hope that Carol Day manages to find additional legal means to seek compensation.
Discussion thread for this scam finding
FPA member Carol Day had a managed forex account with 4xMaster. For a time, the account was profitable and she paid over $18,000 in performance fees. Later, all profits and over 60% of the initial investment was wiped out in a couple of days of bad trading.
When Carol tried to contact 4xMaster about the possibility of a refund of performance fees, there was never any response. The FPA attempted to negotiate on Carol's behalf, and also got no response.
We realize that account managers do not normally offer money back guarantees on their performance fees, so this alone isn't enough to declare this company to be a scam. We consider the failure to negotiate with a trader under these circumstances to be reprehensible, but would need to examine things further to see if this really crosses the threshold of scam.
What we do consider to be a scam is the fact that the 4xMaster website still states that the maximum theoretical drawdown is 20.4%. Carol also reports that after the first day of failed trades, she requested that leverage be reduced and her requests were ignored. Since no one from 4xMaster bothered to reply to the FPA, we accept Carol Day's version of events to be completely true.
We consider an account manager's failure to exercise proper precautions with client funds, especially when contacted by the client who requests greater care in trading to be a breach of ethics. We also consider the incorrect or outdated information on the company's website to be a serious breach of ethics.
Thus, we officially find that 4xMaster is a scam. We offer 4xMaster the chance to resolve this issue by correcting the company website and honestly negotiating proper compensation to Carol Day for the additional losses caused by ignoring her trading instructions.
We extend our sympathies to Carol Day for the loss of her money. We thank FPA Investigator Gerard fro his efforts on the case.
4xMaster is hereby blacklisted by the Forex Peace Army. We urge traders not to place money with this company. We hope that Carol Day manages to find additional legal means to seek compensation.
Discussion thread for this scam finding
