I have a question in regards to a Forex account management company based out of Sydney, Australia that I have been with for the past year (I'm not posting their name due to potential legal issues).
The company has a physical office in Sydney, Australia, with a staff of approximately 10, around half of whom are traders. They have been operating for the past 4 years. They offer three monthly trading categories: 1.5% potential monthly profit, while risking 4.5% of capital; 4% potential monthly profit, while risking 10% of capital; and 7% potential monthly profit while risking 14% of capital. The minimum amount needed to open an account with them ranges from 50K for the 1.5% package, to 300K for the 7% package. Also, when someone new signs up they have their capital placed into separate pools within each category. Every monthly trading category consists of 5-8 groups of such pools.
My main issue with them is that although they state in their contract that you are risking 10% of your capital per month, I have only been receiving steady profits, without once experiencing a losing month. I also have acquaintances who have been with them for 2 years and they also state that they have been receiving consistent monthly profits without once having a losing month. These people are in separate groups (within the same monthly trading package) which tells me that out of the approximately 7 groups in the same trading category as myself, 2-3 have been receiving consistent monthly profits over 2 years without a single losing month.
When the company started up they did initially have an incentive program to get existing clients to bring in new clients, by giving the existing clients a cut of the new clients' profits. However, this has recently been stopped. They have also made it more difficult for new clients to access the categories that offer bigger returns by making the minimum capital investment amount larger. I think this may be due to the company's expansion since they have increased their staff numbers over this past year.
They also started up a Forex long-term investment package last year which has lost approximately 50% of its value over the past year. This made me wonder how a company that shows consistent monthly losses in its new long-term Forex investment package is able to pay out its clients consistent monthly returns. I do understand that one is long-term and the other based on short-term trading results, but I figured that they should still show better performance results.
My question to Pharaoh and anyone else who is acquainted with the world of managed Forex accounts, is how suspicious should I be of this company and what questions should I be asking of them to make sure that this operation isn't a potential scam.
The company has a physical office in Sydney, Australia, with a staff of approximately 10, around half of whom are traders. They have been operating for the past 4 years. They offer three monthly trading categories: 1.5% potential monthly profit, while risking 4.5% of capital; 4% potential monthly profit, while risking 10% of capital; and 7% potential monthly profit while risking 14% of capital. The minimum amount needed to open an account with them ranges from 50K for the 1.5% package, to 300K for the 7% package. Also, when someone new signs up they have their capital placed into separate pools within each category. Every monthly trading category consists of 5-8 groups of such pools.
My main issue with them is that although they state in their contract that you are risking 10% of your capital per month, I have only been receiving steady profits, without once experiencing a losing month. I also have acquaintances who have been with them for 2 years and they also state that they have been receiving consistent monthly profits without once having a losing month. These people are in separate groups (within the same monthly trading package) which tells me that out of the approximately 7 groups in the same trading category as myself, 2-3 have been receiving consistent monthly profits over 2 years without a single losing month.
When the company started up they did initially have an incentive program to get existing clients to bring in new clients, by giving the existing clients a cut of the new clients' profits. However, this has recently been stopped. They have also made it more difficult for new clients to access the categories that offer bigger returns by making the minimum capital investment amount larger. I think this may be due to the company's expansion since they have increased their staff numbers over this past year.
They also started up a Forex long-term investment package last year which has lost approximately 50% of its value over the past year. This made me wonder how a company that shows consistent monthly losses in its new long-term Forex investment package is able to pay out its clients consistent monthly returns. I do understand that one is long-term and the other based on short-term trading results, but I figured that they should still show better performance results.
My question to Pharaoh and anyone else who is acquainted with the world of managed Forex accounts, is how suspicious should I be of this company and what questions should I be asking of them to make sure that this operation isn't a potential scam.
