FX VIP Club Managed Account is a Scam

[alexx71]

It seems they still are in force ! This is a mail I received: (29/10/2014) :

This is a brief notice to inform anyone not currently in the program that we are willing to accept an additional $150K in capital this month. The execution at the broker has been excellent recently, and so we are willing to let a few more clients in and feel save with an additional $500K according to our calculations.

However, we are only allowing $150K in new deposits simply because the accounts will obviously likely grow larger as usual!

If you are serious about this opportunity, I invite you to get started below....

 

[SCAMBUSTERZ]

I would be curious to know how they were getting paid, seems they are connected directly to the brokers hedging positions and hiding this with my fxbook till the blow the customers accounts... 100% nefarious should be in jail action going on there. I would contact whoevere oversees them and report them ASAP!

 

[alexx71]

I would be curious to know how they were getting paid, seems they are connected directly to the brokers hedging positions and hiding this with my fxbook till the blow the customers accounts... 100% nefarious should be in jail action going on there. I would contact whoevere oversees them and report them ASAP!

First : They gain commissions from the broker. You need to open the account with their link, they are Introducer Broker. So for every trade they gain, no matters if a trade is a winner or loser.
Second : They have another account that open opposite trade, so one account buy, another sell. In this way you have one account in profit and the other one in loss. They will gain from performance fee of the account that is in profit. So commissions and performances fee are where they gain....risking ZERO!

 

[Uniquenick]

First : They gain commissions from the broker. You need to open the account with their link, they are Introducer Broker. So for every trade they gain, no matters if a trade is a winner or loser.
Second : They have another account that open opposite trade, so one account buy, another sell. In this way you have one account in profit and the other one in loss. They will gain from performance fee of the account that is in profit. So commissions and performances fee are where they gain....risking ZERO!

Yes I can confirm that when he ran this scam at Pepperstone he was making 2 pips on every trade through increased spread, that was never disclosed. I had to force it out of Pepperstone and get them to admit they were paying him 2 pips spread. I reported him to their compliance department, and it seems he then moved onto Synergy instead. I would hope the brokers could ban these operators when they are margin calling their clients accounts like this.

 

[Pharaoh]

Simple rule - never let an account manager either work for the broker or be an IB of the broker. This creates an inherent temptation to churn an account. I'd rather pay 1-2% more of the profits than worry about whether an account manager is trading just to generate spread payments.