An investment company is promising to grow my funds by managing my broker account - dangers?

[RHANDP]

Please provide all company details. This will help others.

 

[Petezaa]

I have been receiving quite good signals from this company and now they are offering to total manage my account and they claim they will achieve huge profits.
They require my MT5 account password for this. I am wondering what are the possible dangers? Of course, they could blow the account with wrong trades, but otherwise, I don't think they can withdraw money since money withdrawal is always back to the bank card that was used to deposit the money.

Has anyone trusted a company to do this?

Don't trust anybody asking to manage your account.

-RED FLAG-

 

[JoJozil]

If I were in your shoes, I would definetely avoid working withthe organisations which ask my account's password. This kind of cooperation doesn't look credible to me. I would buy some fund or something like that, but giving my password to some people is definetely not safe. I think that it is still possible to change the withdrawal settings even if you have 2FA, so, man, you'd better trade on your own rather than rely on some other guys.

 

[Pharaoh]

They do have a legit looking website and take payment by Paypal. They have okayish reviews. I will do like you suggest and start small. Thanks

There's your fatal warning sign.

Payment for forex account management should be handled by the broker via an LPOA agreement. That agreement specifies the exact terms of how the manager is paid and the broker removes the payment from your account and transfers it to the manager.

Many brokers specifically prohibit a 3rd party from accessing your account without a signed agreement. This means you can pay and pay those management fees on profits via PayPal, but when the time comes to withdraw profits, the broker could use their Terms of Service to cancel all of your profits.

Making sure not to get ripped off one way or another via account management isn't easy. I wrote some guidelines that will make it simpler:

How Not To Lose All Your Money With A Managed Forex Account

Read the article and don't be in a hurry to hand anyone control of your money.

 

[Keiffff]

I would be skeptical. You said reviews were mixed, so I would definitely look at those bad reviews and consider those complaints very carefully.

Second this especially if reviews are bad