Forex Trader is Trading for You in Return for Commission

Trading Discussion
1

Hi everyone!

A few times I came across promotions offered by popular online Forex traders saying that if you invest let see $400 with this Forex trader he/she will give you back in profit $4,000 minus their commission.

I believe that the Forex trader is a succesful trader him/herself and trading with my investment is another activity for the person.

In order to gain this profit for you, it will take several days of trading!

  • This is something common in the industry and legit?

  • Is the Forex trader really able within such a short time frame and low investment amount to make this kind of gain for you?

  • Could it be even a Ponzi scheme? (Not sure how common it is within the Forex industry)

Thanks!
Mike

2

Why do you believe that, Michael? (I don’t.)

I don’t know if it’s common, but it happens.

It can’t really be legit.

It doesn’t really make any sense at all why someone would want to offer that for legit reasons, when raising funding to trade is so easy now for skilled traders, so honestly I think people would have to be slightly on the gullible side to fall for it, really.

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3

I have a live account that is managed by my pro friend for 30% profit charge every month when the profit exceeds the ongoing high water mark (HWM).

So if your account is $5,000 and he reaches $5,500, he will charge $150. The next month, the account size must exceed $5,500 to be charged. which means if he has a losing month, their are no charges until his profits are greater than the HWM.

And, he makes about a realistic 24% profit per annum. Which is the reallity, not the $400 to $4,000 promise of the scam amount.

I add to my live account - compounding - every time he reaches a higher HWM. Yes, he does have a couple of consecutive losing months during the year, but I am not charged until he brings my account back to a new HWM profit.

Back in 2019 he suffered a major spike loss from the Swiss Franc which took him 9 months to regain the account size at no charge throughout.

Best of luck

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4

If he can turn $400 into $4000 in just a few days then just imagine what that account would look like in a year or two. It would be hundreds of millions, probably billions. At that point, what would he need with your measly $400?

You would be better off putting it in a trading account of your own and blowing it yourself. At least then you’d have learned a bit about trading.

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5

I would never believe anyone trading for me except myself.

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6

1000% in a few days looks sus to be fair. If it would be, let’s say in a year or several months and the deposit requirement would be much higher than just $400 then I think you could think about it and calculate all the pros and cons.
But in these conditions it’s not with it.

7

Very good point!

8

Exactly. This is like keeping a guy for yourself to go for a morning walk in your place and expecting that you will get fit. The world doesn’t work this way and neither does trading. The one whose money is at stake (Trader) has to take its chances and execute the trade as he is been at the forefront of it since beginning.