Is Forex a scam or a fair game at the interbank currency market?
It is one of the top discussed questions on the net. The internet portal called “The secrets of Masterforex-V trading” was among those who raised and developed the topic. The essence of numerous disputes on the matter can be reduced to the following issues:
· Many traders have lost their deposited money trading with the very Forex brokers or dealing centers (DCs) and blame them for arranging “the Forex scam”.
· In response to that the brokers/DCs say that 97% of traders lose at Forex. That is why it is the losing traders themselves that should be blamed for their losses, not the brokers or dealing centers. On the other hand, they say that all brokers/DCs are different, and that is why traders shouldn’t think that all of them are swindlers. There are both scam brokers and fair brokers providing services for many years.
How to tell a fair broker/DC from a scam one?
Masterforex-V Academy members offer their own methods of doing it basing of many years of successful trading:
*Only a successful trader can expose a scam broker (losers will never understand the essence of their losses and who is really to be blamed for it)
*It is necessary to perform a long-run comparative analysis of the trading conditions offered by dozens of Forex internet-brokers.
* It is necessary to make and constantly update the blacklist of scam brokers/DCs, which successful traders have claims against.
*a Forex trader opens a real-money trading account only with those brokers/DCs that are not on the blacklist.
Over 5.5 years of Masterforex-V Academy existence some popular brokers and dealing centers, both in Russia and around the world, have got on the black list of those who refused to settle accounts with successful Masterforex-V Academy students:
· Broco.
· Forex-mmcis.
· TradeClub.
There are famous Forex brokers on the black list as well:
· SAXOBANK. Numerous complaints about non-market quotes, catching the stop-loss orders of Masterforex-V Academy students.
· Forex club.
· Teletrade.
All the details of these claims and complaints you can find at the forum of Masterforex-V Academy.
What are the expert opinions?
According to Vadim Zhunko, the head of the department of spectral analysis of Forex currencies and their indexes, Masterforex-V Academy, Forex can be represented in the form of a pyramid pattern. At the top of the pyramid there are banks, which have info about the trading volumes, while the bottom is occupied by scam and backroom DCs. The difference between fair and backroom DCs is that the latter do not enter the interbank with the net positions composed of the clients’ individual orders because 90% of their clients lose. The “backroom activities” are not that bad because the DCs are trying to save and leave the lost money with them instead of giving it to the banks providing them with interbank access.
Another expert from Masterforex-V Academy Yuriy Zaycev (Yuraz), the head of the department called “Flat range breakout, overnight trading, auto-trading, Matrix TS”, says that a simple economic explanation of the “backroom broker/DC” phenomenon is that such DCs do not need to enter the interbank. They can hedge their risks by meeting each other’s requirements. For example, if a client opens a trading position and there are no counter-positions to hedge it, the DC can hedge it by a counter-position(s) in (an)other DC(s) it has agreements with.
According to Ilya Pressler (DFVA VeloVelo), the head of the DFVA department, you can open a multi-currency account with your favorite bank and trade long-term trends without broking services. Whether Forex a scam or not for any individual depends on specific trading conditions he/she has. Ilya doesn’t recommend pinning label any specific labels on the term “Forex”. It is not some single market. It is just a range of financial relations. That is why it’s extremely difficult to correctly evaluate all its complexity. It would be the same if someone called all the dogs aggressive and dangerous because he/she had seen a dog like that, which is certainly not true, the expert says.
Market Leader and the most popular internet forum for Forex traders offer you to participate in a survey by answering the following question:
What is Forex?
· It is a fair currency-exchange “game” implying that professionals win and amateurs lose. Everything as in everyday life
· It is a scam implying that brokers and dealing centers profit from their clients’ losses.
You are free to discuss this article here: forum for traders and investors
1 comment:
Forex trading is open 24 hours a day and therefore you need to ensure that the forex broker that you choose operates at all times of the day.
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