Category Archives: Forex Scams

forex scams

Prime4x scams their clients?

I just came across a troubling article posted by a moderator over at the Forex Peace Army forum which accuses a forex broker called Prime4x of scamming their clients. There is quite a bit of info there so if you happen to be one of their clients or thinking of becoming one you may wish to check  out the “troubling article” link above.

Also I found it amusing that one of the victims built a spoof site at http://www.prime4xscam.com/ It has comical value indeed 🙂 lol “Huge ROI, but not for you!”

Personally I never traded with this broker so I can’t comment, but really after seeing that article I have definitely been scarred into even thinking of becoming one of their clients.

Suggestion to Prime4x: “Pay Your Clients Now or Go Out of Business”

Alan out.

Leo Trader Pro Is a Scam?

leo trader pro

Hi everyone. I guess I was a bit too excited or was too much enamored with the whole idea of neural network based forex robots when I made my previous post regarding the Leo Trader Pro forex robot. In this previous post I mentioned how supposedly the CEO of a Finish forex brokerage firm – FinFX – “authenticated that Leo Trader Pro makes 113% per month.” Sellers of forex products make all sorts of claims (some wildly exagerrated, some complete lies) and some of their claims can often come back and bite them in the rear end. Thus I was not at all surprised when I saw a thread on the Forex Nirvana forum in which the thread starter raises some concerns about this newfangled “Leo Trader Pro” EA. I think all who are interested in discussing this EA in a spirit of open and honest criticism should definitely visit this forum thread and see what is being written:

http://www.forexnirvana.com/f62/new-contender-leo-trader-pro-1870/

So is Leo Trader Pro a scam? Tell us what you think! Join the discussion. See you all on the forum.

Cheers,

Alan

Forex Legend Is a Scam – Stay Away From It!

Hi everyone.

It has come to my attention that a new forex robot (EA) called Forex Legend is a glaring rip-off. Apparently the trading logic was stolen pure and simple.  How do I know this? Well, the EA was leaked and decompiled  (no I do not have it so don’t ask!) and somewhere in the code is a rather worrying piece of code that points to the same folks behind fapturbo.

If indeed (I have strong reasons to believe this is so) the fapturbo guys are behind this then shame on them! Taking someone’s code and selling it off as your own is stooping to a shameful low.

I urge those who are behind forex legend to do the right thing and take the product off the market and issue a public apology to both those who purchased their product as well as the original author of the trading logic behind their product.

My suggestion to those of you fortunate enough to have come across this post is to STAY AWAY from forex legend!! Don’t buy it! Do NOT support these folks.

If you want to join a discussion regarding this topic I recommend you join me and other traders at the following Forex Nirvana forum thread:

http://www.forexnirvana.com/f62/latest-magical-ea-forex-legend-1697/

Wishing you all the best,

Sincerely,

Alan

Complain about Ikon-Royal and they want damages

By Pharaoh
Hiding in a remote location to avoid getting sued for writing this

Isn’t it great to have a place like the FPA where you can complain about problems with forex brokers and other forex products? Isn’t it nice to know that there really isn’t anything those companies can do to stop you as long as you are honest in your statements about what happened?

Ikon Royal doesn’t seem to think so.

FPA member Nickd27 opened a hedged trade before the new NFA anti-hedging rules went into effect. Then Ikon-Royal closed the trade. Under those rules, such trades are allowed to run indefinitely. He reports that he spoke to a manager at Ikon called Ted. Nick says that Ted told him that the hedged position was closed “because he can and he did me a favor by stopping the swap from adding up.” and that Ted’s uninvited “favor” cost him about $14k.

Nick filed a scam ticket with the FPA and Gerard took the case. When Gerard contacted Ikon, a rep named Tim demanded that all mentions of the matter be removed from the FPA’s forums. He also hid behind NFA rules, saying he would only discuss it with the NFA while refusing to discuss the case with the FPA despite Nick having given his full permission for the FPA to join in the conversation.

Stranger still, Tim wanted to have a private conversation with Gerard on the phone saying “I like your style, and would like to do business with you in some capacity”. In order to prevent any chances of miscommunications (or other things things I leave to your imagination), the FPA handles Scam Investigations only in writing. Gerard explained the FPA policy, but offered email communications on this subject as long as Tim understood that until the case was resolved, he would be representing Nick’s interests where they related to the dispute at hand. Tim decided not to commit whatever thoughts he may have had on this to writing.

Gerard continued to try to help Nick negotiate directly with Ikon-Royal. After Nick told Gerard that he couldn’t get any further replies from Tim, Gerard sent “I would like it noted that I did recommend to both sides that this be negotiated before taking things to the NFA. By not responding to Nick at all, you’ve removed any option for a negotiated settlement. Even if you somehow feel you have an ironclad case and cannot lose, I am deeply disappointed that this is how a representative of Ikon would treat an unhappy client. ” to Tim and got no reply.

So, it would appear that Tim’s actions and refusal to even negotiate directly with Nick lead to the filing of a formal complaint against Ikon Royal with the NFA. I guess Tim prefers to have lawyers do his negotiating instead of talking about things directly.

Some time later, Tim broke his silence asking Gerard again to pull any negative postings by Nick. Gerard explained that such postings are only pulled at the request of the person who made them, not because a company feels unhappy about them. He suggested that an Ikon-Royal rep could leave a rebuttal in the reviews. Back when Ikon-Royal was RTFX, one of their reps did leave a review to dispute something that another reviewer said. Nick told Tim that he was also leaving information about this problem on many other websites (we need a way to vote for FPA member of the month. I nominate Nick!). Tim once again failed to reply.

A few days ago, Nick updated Gerard on his NFA Arbitration Claim. His claim is that they had no legal or moral right to close the trades, and that doing so without advanced notification is not a favor, but a way to improperly take money from him. Here’s the shocking part. Nick says that Ikon-Royal has filed a counter claim with the NFA seeking $25,000 in damages because of what Nick wrote in the FPA’s forums and reviews.

So, that’s 2 direct requests for information that traders might want to know about Ikon Royal to be removed, followed by a demand for damages for sharing that information. I’m not a lawyer, but there is something I’d like to remind Tim and the rest of the people at Ikon-Royal about. It’s called the United States Constitution. After they boring parts about how Congress is supposed to work and how to divide up the House of Representatives, there are a few little additions that were made. I’d like to quote the first one of these:

 

Quote:

Amendment ICongress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

Nick is a member of the public trying to exercise his right to free speech here at the FPA. He feels he got ripped off for a lot of money and has expressed that feeling very well. Additionally, in this context, the FPA’s reviews and forums could be considered the modern equivalent of sending a letter to be printed in a newspaper.

Have you ever heard the term SLAPP Suit? SLAPP stands for “Strategic Lawsuit Against Public Participation”. The usual idea of a SLAPP is for a company to sue someone or threaten to sue them in order to prevent that person from publicly speaking out against a company or its policies. One of the most infamous of these cases was when the largest burger chain in the world decided to sue some people who wanted to let consumers know that fast food isn’t very healthy to eat. The concept it not to win the lawsuit, but to make the individual or small group cave in under the threat of large legal expense.

SLAPPs are an incredibly unethical way to do business. A company should be ready to defend its reputation vigorously, using lawyers if and when absolutely necessary, but should never resort to lawsuits to suppress potentially valid complaints under any circumstances. Ikon-Royal is very well rated by the FPA, and this sort of conduct should be beneath them. Offshore bucketshop or upstanding member of the NFA – brokers need to be ready to deal with customer complaints in an upright manner, not to try to silence negative views with lawsuits.

I hope someone in charge at Ikon-Royal is bright enough to re-examine the decisions made in this case and to see that this sort of action is never repeated. In my eyes, Ikon-Royal has just thrown away a huge amount of their company’s credibility.

At this point, the FPA Scam Investigations Committee is holding off a final ruling until they see what the NFA has to say about all of this. Personally, if it were up to me, I’d have voted SCAM the moment Tim chose to not deal with either the NFA or to even continue to talk to their own customer.

I’d like to express thanks to Gerard for providing information I needed to write this. My deepest thanks and respect to Nick for standing firm in the face of a legal threat and for granting permission for this article in spite of the legal issues around it.

Hey Tim and the rest of you at Ikon Royal! I think what you did to Nick’s account was wrong. It looks a lot like improperly taking money from a trader to me. I think trying to get the FPA to pull Nick’s statements instead of addressing the issues is foolish, to say the least. I think forcing an issue to go before the NFA instead of trying to deal with an unhappy customer is an incredibly obnoxious tactic designed to allow you to get away with something, since most people won’t really file a claim with the NFA. I have a suspicion that attempt to talk to Gerard on the phone and off the record was probably a prelude to a bribe or some other pressure to get him to back off. I think your attempt to claim damages from Nick is both unethical and legally laughable. I wish the FPA’s Scam Investigations Committee had nailed you with a Confirmed Scam Finding for all of this (maybe they will after the NFA is done with you). Would you like to drag me before the NFA or into a court of law and see if you can get them to make me pay you damages for saying these things here?

Nickd27’s original complaint about Ikon-Royal closing a hedged trade

My article about the NFA’s anti-hedging rule

SLAPP Suit article at Wikipedia

Have a nice day, unless you’re a scammer.

Article Source: Forex Peace Army

ZuluTrade Top Forex Signal Providers For Week Ending March 6 2009

zulutrade_logo.jpg

Hello ZuluTraders. Here are the top ZuluTrade trading signal provider for this week ending March 6, 2009. This week wasn’t all that spectacular for me as I only gained about 80 pips. But I guess I should be thankful that I didn’t lose any money though.

Top Signal Providers for this week:

JMForex 7144 pips $71,201.03
forexforex 7330 pips $61,890.55
exksa 5146 pips $51,845.70
sdyx8 4785 pips $47,836.42
the watcher 4131 pips $39,972.35

I wish you all many pips in the week ahead!

I’m out,
Cheers!

Alan
http://alansforexblog.com

British Forex Account Manager Accused of £40 Million Forex Ponzi Fraud

By Pharaoh

source: http://www.forexpeacearmy.com/forex-forum/forex-articles/3977-british-forex-account-manager-accused-40-million-forex-ponzi-fraud.html

Terry Freeman, head of GFX Capital Markets (www.gfxcapital.ch) got busted on February 9th by the British Police. Anyone having money with his company is requested to contact the City of London Police at this link: http://www.cityoflondon.police.uk/Ci…a/News/gfx.htm

Mr. Freeman has a managed forex company and is accused of running it as a Ponzi scheme. He also kept a blog (http://www.gfxcapital.ch/traderDiary…4_archive.html) where there is an interesting mixture of signs of trouble (complaints of poor communication from the company, difficulty accessing trading records, etc.) are mixed with glowing praise and defense of Terry for the fine job he is doing in troubled economic times. One defender goes so far as to suggest that he should only give one financial statement and chance to withdraw money per year, so that complaints and bothersome record keeping don’t distract from trading.

Sadly, this sort of extreme loyalty is common in cases where a Ponzi scheme has gone on for awhile. Some investors will remain true believers in the integrity of the scammers, even after a criminal conviction is handed down. Others see the light earlier – usually about the time the arrest hits the papers. As I write this, there are a lot of people on the other side of the pond wondering if they can recover any of their life savings.

Please, if you are thinking of letting someone else trade your money for you, read these two articles first:

Ponzi Schemes and HYIPs – Free Money Traps

How Not To Lose All Your Money With A Managed Forex Account

NOTE: I do not know if gfxcapital.ch is related to gfxcm.com or not. There are many similarly named forex companies out there. I did try to call gfxcm’s New York office before posting this, but only got voice mail.

Brought to you by Alan’s Forex Blog:
http://alansforexblog.com

LegendTrader.com Scam

I just came across this FPA post today. Apparently the managed accounts provider LegendTrader.com was and probably still is doing something fishy.

Btw, you can discuss this issue on my forum in this thread.  Or on the FPA forum over here.

The Forex Peace Army investigators investigated their foul doings and reported as follows:

–begin quote–

We the members of the Scam Investigations Committee of the Forex Peace Army have deliberated on all the evidence available to us and have reached a conclusion. It is our opinion that…

The forex managed accounts company known as LegendTrader.com, run by a man know as Khalid Alam Chowdhury, charged FPA members Bogdan and $3500 up front for a number of types of insurance as part of an agreement to manage forex accounts.

There were 2 parts to this insurance. The first was allegedly to protect LegendTrader from clients running off without paying the percentage of profits that would be considered account management fees. We find this to be very questionable, since it would be foolish for any client to fail to pay fees to a profitable account manager. Another part of the insurance was an “Exotic Options Contract” that would somehow miraculously protect the account holder’s opening balance against any losses. We have done some research, and there are such things as Exotic Options Contracts, but we can find no information on the web about these being used by any other managed account company as a form of insurance against losses in a managed account.

Further, Bogdan was told by Khalid that only 5% of the account will be used in the beginning as margin till the account balance increased in value by 5%. After this Legend Trader will use only the profit to cover the margin and not touch the initial investment.

Bodgan tells us that account balance of $10,000 initially went up about 40%, then lost about $7000 in less than one week. Since the initial balance was not supposed to be touched once he was 5% in profit, we find that this violated the terms of his agreement with Legend Trader. After several other unprofitable trades did even more damage to the account. Bogdan complained. At that point, Legend Trader made him their Sales Rep for Europe and promised him commissions from any new traders he brought in to compensate him while they tried to make up for the losses. We find offering someone commissions to bring new business to a company that has just proven itself to not follow basic rules to risk management to be highly suspicious. Bogdan repeatedly asked Khalid Alam Chowdhury to use the insurance policy to recover his losses. Khalid’s last offer before breaking off communications was that the insurance could recover about one-half of the losses and would take some time to exercise.

Soulfriend tells a very similar story. He paid the same $3500 up front, and then LegendTrader went against all normal rules of account management, lost about $7000 in one day. Then there were suddenly excuses, delays, and failure to reply about using the insurance to recover his initial investment.

Our investigator, Lt. Gerard emailed Legend Trader and asked it anything could be done to recover Bogdan’s money. LegendTrader suddenly had a lawyer (allegedly with a Bachelor’s degree in law). In the first email, the lawyer questioned if the FPA had any authority to investigate. Our investigator explained that since we act as an advocacy group trying to help mediate and resolve disputes between traders and companies, and thus have no need of the numerous different authorizations he wrote about. We find it strange that a lawyer claiming to know about international law would not realize this. The lawyer then threaten to use “U.S based multinational entities” that LegendTrader is affiliated with to “to go against you if you really want to put yourselves into jeopardy.” Our investigator wrote back and suggested that if Legendtrader is really so well connected, perhaps the company should put more effort into resolving customer issues instead of wasting time on threats. Since then, neither Khalid, the alleged lawyer, nor anyone else at LegendTrader has responded to any of a number of emails sent by our investigator or by the two traders who have lost so much.

We find it very questionable that such an allegedly well-connected company cannot seem to reply to their own customers. We also find it questionable that the email addresses for LegendTrader are all at a web-based email service called runbox, and their alleged lawyer’s email address is at another web-based email service called inbox.

Finally, our member soulfriend tells us that he finally managed to call Khalid and that Khalid hung up on him when he tried to ask about his account.

From all appearances, we believe, but cannot prove, that the $3500 in up front fees has nothing to do with any sort of insurance and is just extra money collected for Khalid Alam Chowdhury and LegendTrader. This alone would be sufficient grounds for us to warn our members to stay away from this company.

The Forex Peace Army’s second definition of scam is “Any other forex-related company refusing to return money that legitimately belongs to a trader,” We conclude that LegendTrader has failed to follow its own contracts and return money due to two of our members. The Forex Peace Army’s fifth definition of scam is “Other behavior that would be considered to be highly unethical by a reasonable individual.” We conclude that any account manager who could inflict so much damage on accounts in such a short time and then would cut off contacts with clients and threaten those who attempt to help clients would be considered unethical by a reasonable individual.

We officially find LegendTrader to be a scam. We offer LegendTrader and Khalid Alam Chowdhury the chance to resolve this issue by returning funds legitimately due to Bogdan and soulfriend.

We extend our deepest sympathies to our members as well as other traders who have lost money under the management of Khalid Alam Chowdhury and LegendTrader. We commend Lt. Gerard on his efforts in this case.

LegendTrader is hereby blacklisted by the Forex Peace Army.

We strongly discourage everyone to not to business with this company. We encourage any and all persons who have lost money to this company to work together to take any and all proper legal action against them.

The original complaint and statements by our members can be found here
Legend Trader Managed Account

–end quote–

AleccohFX Declares Bankruptcy

I just heard that AleccohFX just declared bankruptcy. Many people (including me) had high hopes for this broker. For a while it looked like it was the only non ECN broker that genuinely cares about traders and wasn’t looking to screw them over. Well, the story of its demise is a long one so I won’t go into details over here. Click the link below for the official declaration of bankruptcy:

Declaration of bankruptcy of AllecohFx

Another useful source can be found here..

I wish those of you who are affected by this even the best of luck, and hopefully you will be able to recover some or all of your funds.