Equity is the value of an asset less the value of all liabilities hither mann forex scam singapore that asset. Our network of expert financial advisors field questions from our community.
Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. A celebration of the 100 most influential advisors and their contributions to critical conversations on finance. The latest markets news, real time quotes, financials and more. 65 trillion a day, according to the Bank of International Settlements’ Triennial Survey. With this volume of money floating around an unregulated spot market that trades instantly, over the counter, with no accountability, forex scams offer the lure of earning fortunes in limited amounts of time.
The point spread between the bid and ask basically reflects the commission of a back-and-forth transaction processed through a broker. These spreads typically differ between currency pairs. The scam occurs when those point spreads differ widely among brokers. This scam has quieted down over the last 10 years, but be careful of any offshore retail brokers that are not regulated by the CFTC, NFA or their nation of origin.
These tendencies still exist, and it’s quite easy for firms to pack up and disappear with the money when confronted with actions. Many saw a jail cell for these computer manipulations. The Signal-Seller Scam A popular modern-day scam is the signal seller. All the unsuspecting trader has to do is hand over X amount of dollars for the privilege of trade recommendations. Many of these scammers simply collect money from a certain number of traders and disappear. Some will recommend a good trade now and then, to allow the signal money to perpetuate.
This new scam is slowly becoming a wider problem. Although there are signal sellers who are honest and perform trade functions as intended, it pays to be skeptical. Robot” Scamming in Today’s Market A persistent scam, old and new, presents itself in some types of forex-developed trading systems. These scammers tout their system’s ability to generate automatic trades that, even while you sleep, earn vast wealth. Either way, many of these systems have not been submitted for formal review and tested by an independent source.
Examination factors must include the testing of a trading system’s parameters and optimization codes. If the parameters and optimization codes are invalid, the system will generate random buy and sell signals. This will cause unsuspecting traders to do nothing more than gamble. Although tested systems exist on the market, potential forex traders should research any system they’re thinking of incorporating into their trading strategy. Other Factors to Consider Traditionally, many trading systems have been quite costly. 5,000 was not much to pay for a system. This can be viewed as a scam in itself.
No trader should pay more than a few hundred dollars for a proper system today. Be especially careful of system sellers who offer programs at exorbitant prices justified by a guarantee of phenomenal results. Another persistent problem is the commingling of funds. Without a record of segregated accounts, individuals cannot track the exact performance of their investments. Warning Signs Other scams and warning signs exist when brokers won’t allow the withdrawal of monies from investor accounts, or when problems exist within the trading station.