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Liteforex Boom offers goes Bust.

Discussion in 'Scam Alerts' started by MichelAnge21, May 24, 2011.

  1. MichelAnge21

    MichelAnge21 Sergeant

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    Hello Members

    We all know that Liteforex are pretty good at PR and marketing.
    Unfortunately, newbies are often attracted by clever bonus offers without understanding clearly what are the conditions for withdrawal.
    So, I decided to explain in the clearest way possible the LF Boom offer from Liteforex. It s marketed as a free 200 dollars without any requirement to make a deposit with your own funds ( Yeah ! Trading with the broker s money ! How can I lose ? )

    First, we go to their website. There is a dart target that get animated if you click on it. You aim your dart for bull s eye. I m very skillful: got it at first shot...Ok, I can now read the conditions....hmmm no, wait...I get conditions 1.1 to 1.5 but it cannot be all there is: lots of info are missing here.

    Maybe if I click on " open account " ? Nope...I get the registration page immediately ( Ok, let s assume that 42.75 % of newbies will register now WITHOUT reading the FULL conditions ).

    Back to the main page...here ! among the " news release " there is the LF Boom offer and ( a few more clicks from there ) I found the full TOS. But...WTF with article 1.12 ????

    1.12 THE PROFIT GAINED WHILE USING THE BONUS LF BOOM IS NOT AVAILABLE FOR WITHDRAWAL, BUT IS TAKEN INTO CONSIDERATION WHILE BONUS MONETIZATION.

    Newbies...do you need more explanation ? You get a FREE 200 bucks. Let s suppose you are a VERY good trader ( or a very lucky newbie ) and you build that Boom account to 20 000 dollars ( or 2 millions if you use Henry Liu s program ). Then Liteforex will generously allow you to withdraw the 200 dollars bonus ( Yeah ! I worked 300 hours trading but I made 200 bucks without risking my own money ! YEAH ! )

    AND LITEFOREX WILL PUT IN THEIR OWN POCKET THE 19 800 DOLLARS OF PROFIT YOU MADE FOR THEM LIKE A GOOD SUCKER.

    At worse, Liteforex stands to lose 200 dollars that they allocated you for trading and potential for profit is pretty good. THEIR PROFIT: NOT YOURS !
     
  2. MichelAnge21

    MichelAnge21 Sergeant

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    Now, some people might question the fact that I decided to post this in the " scam alert folder ". After all, article 1.12 is there for everyone to read. So, it cant be a scam...

    Ok. First, as I said, it s not that easy to find the FULL list of conditions. If you click the dart game offer banner, you get ONLY conditions 1.1 to 1.5. Reading article 1.12 takes some research around the website. At other times, the website has another promotion banner that gives all conditions, but plenty of people wont understand whay they are getting into still.

    Maybe not a scam, but deceptive ? Yes, it is...definitely. Very deceptive because it is obviously designed to attract people who wont realize they ll never get anything else than the 200 dollars bonus for all their efforts and skills at trading and they will forfeit their profits. What is the minimum wage where you live ? Where I am, it s about 10 dollars per hour. Can we conclude that trading that Boom account weeks or months until you fulfill the withdrawal conditions ( based on lots traded and pips made ) will NEVER pay you anything close to what you could make flipping burgers ?

    One more thing. Suppose you take the 200 bonus and deposit 200 of your own. You trade and make a profit. Liteforex still get a 50% split of your hard-earned profit.

    Stupid bogus offer. To be avoided like the Black Plague
     
    #2 MichelAnge21, May 24, 2011
    Last edited: May 24, 2011
  3. Romeo

    Romeo Sergeant

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    It is indeed very bad that they did not show this term with CAPITAL BOLD letters. On one hand they make it look really attractive, but on the other hand they go looking for trouble and 100% some member will be soon coming in the forums screaming of making x000 $, but not being allowed to withdraw it!

    I think MichelAnge you made a favour both, to liteforex, but also to the traders that are attracted by this offer. I strongly suggest to the people of liteforex to place the specific term highlighted below this promotional offer!
     
  4. MichelAnge21

    MichelAnge21 Sergeant

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    Too late: the Liteforex website brags that about 2750 traders opened a LF Boom account. I suppose the majority will blow their account and wont complain. Those who will grow their account to a good profit will come to the FPA screaming at the top of their lungs in 3 to 6 months I guess.
     
  5. RahmanSL

    RahmanSL Major

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    Hmmmmmm...!!

    Why don't 5,000 FPA members signed up and then "Short" all usd200 worth on high price Gold or Silver? : )

    In a flash, Liteforex will loss usd1m.

    Cool; yah! : )
     
  6. MichelAnge21

    MichelAnge21 Sergeant

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    LOL Cool idea, but Liteforex hedges every position like all good market makers. Only BAD market makers ever go bankrupt. Normally, the broker is never at risk no matter what the clients do. While we would be busy blowing the 1 million he allocated us to trade, he would normally be busy taking the opposite position as compared to us and regaining the 1 million because he d consider all those 200 dollars " gifts " something he must protect one way or another..

    Actually, I asked a few hard questions to their chat service today and I spoke to a very good employee Natalya who never cut the communication even if it was obvious I was there just to criticize. I asked her what entitled them to pocket the profit if a good trader made money with the 200. She said " If you use only the 200 gift and dont deposit your own funds, you re on demo "

    So I said " That doesn t make sense. What if I take the 200 and also add 200 of my own funds.Then I will get 50% of the profit and you get 50%. How will your server split each order between " demo " and " real " The answer was a bit confused but it implied they would hedge only 50% of my orders.

    I m still scratching my head over that one.....but she was basically saying that the 200 that comes from Liteforex never enters the real market. So if you want the aggravation of constantly having to mentally adjust your trades, you take their 200; you add your 200 and you mentally divide every trade by 2. You buy 4 mini lots and you mentally say " it s really 2 mini lots " You make 100 dollars profit and you think " it s really 50 dollars " etc
     
    #6 MichelAnge21, May 25, 2011
    Last edited: May 25, 2011
  7. Pharaoh

    Pharaoh Colonel

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    Broker bonus terms have always been an issue, but this one sounds truly exceptional.
     
  8. RahmanSL

    RahmanSL Major

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    Someone in Liteforex has a lot of time on his/her hand to think up that complicated, but intriguing sales/promotion idea! : )

    However, if they say it's like a Demo account if you don't deposit any of your own money, BUT can withdraw their usd200 "gift money, not the profits... well, use that account as a "lead Demo account".
    If we blew that account, it's not real money anywhere. If we somehow managed to make profits and comply with their T&C, we get usd200 for our trouble.

    Hmmmm, I need another lead Demo account anywhere and so might sign up with them.
     
  9. MichelAnge21

    MichelAnge21 Sergeant

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    Rahman

    Great minds think alike because I also saw that possibility and even advised a new trader in another thread to use that offer as a micro demo account with the idea to get 200 dollars if you re a keen student.

    But, there is a clause in the Liteforex conditions that says they can cancel the bonus at their own discretion. I think that clause is precisely for smart cookies like you who would accept the " 200 dollars demo account contest " without accepting to contribute any of your own precious dollars. That clause must be decoded as " Bonus hunters will be hunted ".

    Still, the rules allow you to join the Boom offer and you ll have 180 days to show you re an expert at trading when there is a 200 dollars carrot dangling in front of your nose LOL
     
    #9 MichelAnge21, May 26, 2011
    Last edited: May 26, 2011
  10. Megaafricans

    Megaafricans Recruit

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    This offer will destroy liteforex before their clients

    i asked if i deposited 20 into the 200 and make 1000 profit, what will i be able to withdraw? I was told $90! Is that not crazy?

    This is a complete MESS
     

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