Hermes Leao
Private, 1st Class
- Messages
- 54
G.u.i.l.t.y.
One of the recurring patterns we see is the failure of the offending company to maintain honest, open and timely communication with the client. Here once again, the familiar pattern is evident.
So far I can not recall a single instance where a company was found innocent when they behaved this way. But I can recall instances where companies (eventually) did the right thing, and settled the accounts honorably, by maintaining reasonably open communication.
When evidence like this comes up, you can pretty much be certain you are dealing with a criminal scammer. And these criminals need to be put out of business as soon as possible.
None of us like regulation, or being told how to run our affairs, but I can tell you, that if silly traders keep handing over sums of $10,000 to unregulated scam brokers, then eventually the Currency Market Regulators will be forced to step in and regulate not only EVERY broker who applies to act as an ECN, but it will eventually come to pass that traders will be required to show they have a brain, by having to pass an examination to earn the right to trade.
Is that what people want???
So far FPA is doing a good job in chasing up these scammers, but very little is happening to educate traders about avoiding such criminals to begin with.
It is highly likely that many of us belong to other forums, and it is a part of the responsibility of all of us to bring to the attention of all traders, the risks of going with unregulated scam brokers.
I have not been all over this FPA site, so I ask the question ... Is there a template-post that we can copy/paste on to our forums, with a link back to FPA, that warns people about scams? The template should also include information about the kind of questions to ask a broker, as well as the places to look to prove that the broker is in fact correctly registered and regulated.
I think this would be and should be the logical next step for FPA.
Traders who want to submit funds to a broker need a check-list of questions to ask and facts to uncover, before sending their money anywhere. The golden rule is NOT to deal with ANY broker registered in a tiny country.
There is a reason they do that.
Think about it ... why would a Russian/American/Canadian broker get themselves registered in the British Virgin Islands, Corfu, or Greece, Malta etc, when there are perfectly capable and excellent administrators available in their own countries?
Another good rule is to deal only with reputable brokers, registered in your own country.
I am beginning to lose patience with some of these cases. While it is deplorable that complainants have been scammed, I think there is enough evidence out there these days, that using fringe brokers is going to be very risky when you want either your profits, or your capital returned.
Think, people!
I will be voting "guilty."