AsstModerator
FPA Forums and Reviews Admin
- Messages
- 5,745
Please see about getting your CapsLock key serviced.
Ponzi scheme is not a generic word for financial scam. A Ponzi scheme is not the same as a market maker or a bucket shop. I have seen a few brokers cross over into Ponzi schemes, but that is very rare. Please read this article if you want to try to understand what a Ponzi scheme is and isn't...
Ponzi Schemes and HYIPS-Free Money Traps
Market maker brokers may or may not hedge their net positions against an LP. Those that never hedge are better described as bucket shops. In the UK, these are called Spread Betting brokers. Since many traders are really gamblers who throw away money, even a pure bucket shop can usually make a profit without resorting to cheating. You should also be aware that more than one ECN broker has been caught cheating on trades.
Regulated and unregulated brokers have scammed traders and disappeared. Only a few regulators try to recover some or all of the money. The FPA does issue warnings about HYIPS and obvious Ponzi schemes, but only warns against brokers based on the actions of those brokers.
You still haven't set a standard for what address, country, and regulator you would find acceptable. Should I add a note to all broker review pages saying "WARNING: FPA Member baddog4x says this is probably a scam and is ready to TYPE IN ALL CAPS to prove it!"?
Ponzi scheme is not a generic word for financial scam. A Ponzi scheme is not the same as a market maker or a bucket shop. I have seen a few brokers cross over into Ponzi schemes, but that is very rare. Please read this article if you want to try to understand what a Ponzi scheme is and isn't...
Ponzi Schemes and HYIPS-Free Money Traps
Market maker brokers may or may not hedge their net positions against an LP. Those that never hedge are better described as bucket shops. In the UK, these are called Spread Betting brokers. Since many traders are really gamblers who throw away money, even a pure bucket shop can usually make a profit without resorting to cheating. You should also be aware that more than one ECN broker has been caught cheating on trades.
Regulated and unregulated brokers have scammed traders and disappeared. Only a few regulators try to recover some or all of the money. The FPA does issue warnings about HYIPS and obvious Ponzi schemes, but only warns against brokers based on the actions of those brokers.
You still haven't set a standard for what address, country, and regulator you would find acceptable. Should I add a note to all broker review pages saying "WARNING: FPA Member baddog4x says this is probably a scam and is ready to TYPE IN ALL CAPS to prove it!"?