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Acetop Financial Limited Review
Acetop Financial Limited was formed in 2020 and is authorized and regulated by the Financial Conduct Authority (FCA). They are based in London and offer forex, CFD and spread betting services. Acetop has the vision to be recognized across the industry as the most trusted provider of trading serviced with an unparalleled commitment to offering first-class service. In this review, we will be looking at different aspects of what Acetop provides to see if they can live up to their visions and so you can decide if they are the right broker for you.
There are two different accounts on offer from Acetop and both are very different from one another, these are a spread betting account and a CFD trading account.
Spread Betting Account: Spread betting accounts are used within the UK to help avoid paying tax, these accounts are classed by the UK government as gambling and so do not require any capital gains tax being paid. The account can use MetaTrader 4 as a trading platform and has a stop out level of 50% and the margin call level of 100%. The account can be in either EUR or GBP as a currency and there are 50 different products to trade. The minimum deposit is £100 or €150 and swap charges are present for holding trades overnight. The spreads are variable and the minimum trade size is £0.10 or €0.10 and the maximum trade size is £250 or €250. Demo accounts are available for free and as mentioned this account is tax-free.
CFD Account: The CFD is account is more like what you will see at many other brokers, this account also uses MetaTrader 4 as its trading platform and has a margin call level at 100% and stop out level of 50%. The base currency of this account can be in EUR, GBP or USD and it has 50 different instruments to trade. The minimum deposit is £100, €150 or $150 and this account has swap charges for holding trades overnight. The spread is variable and the trade sizes start from 0.01 lots which a maximum trade size of 50 lots. The account comes with a free demo and the account is no tax-free so capital gains tax must be paid on any profits (please see your accountant for more information).
Both accounts with Acetop use the same trading platform, there is just the one available and that platform is MetaTrader 4.
MetaTrader 4 (MT4): MetaTrader 4 (MT4) is one of the world’s most popular trading platforms and for good reason. Released in 2005 by MetaQuotes Software, it has been around a while, it is stable customizable and full of features to help with your trading and analysis. MT4 is compatible with hundreds and thousands of different indicators, expert advisors, signal providers and more. Millions of people use MT4 for its interactive charts, multiple timeframes, one-click trading, trade copying and more. In terms of accessibility, MT4 is second to none, available as a desktop download, an app for Android and iOS devices and as a WebTrader where you can trade from within your internet browser. MetaTrader 4 is a great trading solution to have.
Leverage exists with Acetop however there isn’t any mention of what the maximum or minimum leverages are, the example given on the website states 1:50 but we can not tell if this is the maximum or if it goes further. The FAQ on the website also states that once leverage on an account is set it can not be changed. This could also be meaning that there is no choice in leverage and you must use what Acetop suggests.
Trade sizes for CFD trading start at 0.01 lots and go up in increments of 0.01 lots so the next trade would be 0.02 lots and then 0.03 lots. The maximum trade size is 50 lots which is an appropriate level as you would not want to make trades much higher due to difficulties with executing large trades quickly and without slippage. The spread betting account has trade sizes starting at 0.10 base currency and go up in increments of 0.10 base currency. The maximum trade sizes are 250 base currency.
There is no added commission on either of the accounts, they use a spread based payment structure that we will be looking at later in this review. Swap charges are present though and are charged for holding trades overnight, these can be both positive and negative and can be viewed from within the MetaTrader 4 trading platform.
Acetop does not provide a massive range of products, they are broken down into three different categories, Forex, Commodities, and Indices. The website states that there are 50+ forex pairs including EUR/USD, EUR/NOK, NZD/JPY, and AUD/USD. There are only four different commodities available in the form of Gold, Silver, US WTI Oil, and UK Brent Oil. Finally, there are 10 indices including UK 100, US Dollar Index, Germany 30 and US Tech 100.
The spreads comparison between the two account types make it seem like they are almost identical, the main difference in spreads will be dependant on the instrument that you are trading. For example, AUD/CAD has a starting spread of 2 pips, while AUD/NZD has a starting spread of 3 pips. These spreads are what is known as variable (or floating), this means that they move with the markets, when the markets are being volatile the spreads normally widen and get bigger. The stated numbers are the minimum that they will be and they will often be seen much higher.
The minimum amount required to open ana account with Acetop is currently set at £100, $150 or €150 depending on the currency you want the account in. Once ana account has been opened, with many brokers the required deposit for future top-ups can fall to a lower amount however there is no indication that this happens with Acetop so we will state that they remain at £100, $150 or €150 just to be safe.
Deposit Methods & Costs
The following methods are available to deposit with Acetop: Bank Wire Transfer, MasterCard Debit / Credit, Visa Debit / Credit, UnionPay, and Skrill. There are no additional fees when it comes to depositing and Acetop will cover any fees that the processors may add.
Withdrawal Methods & Costs
The same methods are available o withdraw as they are to deposit, for clarification these are Bank Wire Transfer, MasterCard Debit / Credit, Visa Debit / Credit, UnionPay, and Skrill. Acetop offers free withdrawals and does not add any fees of their own for withdrawals. It is important to note though, that the processor that you use may add fees of their own so be sure to check with them prior to making any deposits or withdrawals.
Withdrawal Processing & Wait Time
Processing times depend on the processor that you are using and the withdrawal method used. The Acetop Financial website states that all methods of withdrawals will take between 3 to 5 working days for you to receive your finances, however, we can not see Skrill deposits taking the same time as a bank wire transfer, so we would not take the numbers stated on the website as gospel.
Bonuses & Promotions
We could not locate any information on the website in regards to bonuses and promotions so it does not appear that there are any active at the moment, this does not mean that there won’t be in the future so be sure to check back regularly if you are looking for bonuses.
Educational & Trading Tools
There are a few very basic things on offer when it comes to educational and trading tools. Ther is a market news section which gives you some news about what is happening in the markets, this also comes with an economic calendar which tells you of any upcoming news events and which markets they may affect.
In terms of education there re some FAQs on CFD trading as well as Spread Betting and Forex trading. There is also a section for seminars and events however at the moment there is a notice stating that there are currently none available, however, you should stay tuned for updates.
The contact us page outlines the different ways that you can get in contact with Acetop, these include phone numbers to the Acetop main platform as well as the client services department. There are email addresses for client services, compliance, marketing & PR and, Human Resources. The support department is open from 7 am to 5 pm (UK Time) Monday to Friday and closes over the weekend at the same time as the markets close.
There are demo accounts available to both of the account types, the accounts will mimic the trading conditions of the account that you are using, there isn’t any information in regards to how long they last, as some brokers let them go indefinitely while others put a time limit such as 30 days before they expire.
The following statement is present on the Acetop website: “The information on this site is not directed at residents of the United States, Belgium, Canada, Singapore, or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.” If you are unsure of your eligibility, then be sure to get in contact with the customer service team to find out.
Acetop offers spread betting which is a little different to what you may be used to, if you are not in the UK then we would not recommend using this option and instead go for the CFD account. The trading conditions are ok, they are nothing special and while it states that spreads can be quite low, they are relatively high when comparing to the competition. Initial deposits are low which makes them appealing to newer traders however there isn’t a huge selection of assets to trade which could mean there are moments of downtime (no trading) where you could be trading on other brokers.
We hope you like this Acetop Financial review. If you did, please be sure to check out some of the other reviews on Forex Academy to help find the broker that is right for you.
iMarketsLive MLM Review (2020): Scam, Wolf, or King of Wall Street?
Table of Contents
It’s All About The Benjamins
So you wanna get rich from Forex trading, huh?
I know the feeling.
But you might wanna think twice about joining iMarketsLive.
Like it or not, most MLMs like iMarketsLive are dressed up sales jobs.
Whether it’s selling “the dream” to your friends and family to convince ’em to sign up for your new Forex trading program…
Or just buying and selling currencies in the Forex market yourself.
Either way, you better enjoy hustlin’ and grindin’ if you’re gonna make it in this game.
Let me break it down for you:
iMarketsLive – short for International Markets Live – is a unique multi-level marketing company that’s all about Forex trading.
That’s short for foreign exchange trading, also known as currency trading.
It’s just like the stock market but instead of buying and selling shares of companies, you buy and sell currencies like the U.S. and Canadian dollar.
And unlike a regular 9-to-5 job, skilled currency traders can make (or lose) serious bank.
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In fact, the Forex market is the largest financial market on the planet — doing 5 TRILLION (with a “t”) a day in trade volume.
That’s over 200 times larger than the New York Stock Exchange!
Now you can see why there’s an absolute sh*tload of Benjamins to be made in Forex.
And iMarketsLive is doing exactly that:
By 2020, they were pulling in over $6 million per month.
They’ve also experienced a tremendous amount of growth and momentum in 2020 and 2020.
But there’s a fair amount of controversy surrounding this network marketing phenom.
If you’ve noticed that too, you’re probably interested in a lil’ more info about ’em, right?
You’ve come to the right place, brotato chip.
iMarketsLive Company Overview
First things first:
iMarketsLive is a Forex trading MLM that offers various trading educational products and services to a global audience.
They currently appear in over 120 countries and have training available in 8 major languages.
As you’d expect, their headquarters is located in the center of the financial universe:
New York City, New York.
They also have a staff of over 60 educators who have a single job: Teach peeps like you and me about the joys of Forex and cryptocurrency trading.
Oh, did I not mention they do cryptocurrency markets like Bitcoin as well?
The company’s vision, according to their website, is to “Educate, Enrich, and Empower One Million Students by 2020.”
Admittedly, also according to their website:
Trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing financial security or life style.
To be fair, that could be said about any investment opportunity (e.g. financial services from Primerica, binary options, etc), but Forex trading is notoriously difficult — I know from personal experience.
Risks aside for now, let’s talk about how iMarketsLive came into being in the first place.
When Was iMarketsLive Founded?
What’s the real story behind iMarketsLive?
Well, for starters:
International Markets Live, Inc. was founded back in 2020 by CEO Christopher Terry.
But you know what’s weird?
iMarketsLive’s corporate website is surprisingly thin when it comes to offering information.
Most companies, even most MLM companies, have at least a little history of the company along with a small biography of the founder/CEO.
iMarketsLive.com has no such information on their site and seems to prefer to remain as mysterious as possible.
But I did manage to find this page, which appears to be an older bio of the company’s founder Chris Terry.
Here’s an excerpt:
Mr. Christopher Terry began this journey in construction, both as a worker and eventually as an owner, for nearly 12 years. In 1995, he discovered commodities trading and began to immerse himself in the markets.
In just 3 years, he was confident enough to walk away from his Construction Business, which had generated sales in excess of $40 million that same year, in order to become a full time trader.
Over the years he applied and effectively utilized this winning strategy of gaining the necessary learning and experience through the proper Mentors and then imitating the strategies of successful people.
While doing so he realized the same process of following success step by step, could bring average people everywhere to the same level of success that he himself had achieved.
Mr. Terry began to realize that at this point in his life it was his calling to help change people’s lives on a massive Global scale through a marriage of Network Marketing with Professional Trading.
This is why, in August 2020, Mr. Terry made the decision it was time to act on this Philosophy, and International Markets Live, Inc. was born.
One thing that’s missing from that bio of Chris Terry is his long history with MLMs and network marketing.
Terry came up in Amway, and although by his own admission he didn’t actually make any money, he said it gave him a “mindset of wealth”.
In other words, he probably realized the folks who made the most money in an MLM were the ones at the top and who recruited the largest downlines.
This also might explain why Chris Terry was reportedly a big promoter of Zeek Rewards*, which got busted by the SEC in 2020 for being a ponzi scheme.
(*In this interview with Denise Martino, Terry refers to Denise as his “downline member” and she clearly appears to be in Zeek at the time.)
Despite these failed business attempts, Chris Terry persisted and while the idea of iMarketsLive was spawned in 2020, it officially launched in 2020.
The new Forex trading MLM grew quickly and by 2020, iMarketsLive reached 55,000 members.
Unfortunately, that same year brokers began locking the accounts of many iMarketsLive customers for using an unregulated “expert advisor”.
Here’s what happened:
iMarketsLive had a special little automated trading program called “FX Signals Live”.
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The program automatically mirrored the trades of Chris Terry himself, so members could essentially play the Forex market without actually understanding it.
However, one of the main reasons there are regulations in the investment world is to prevent exactly that.
And when legitimate brokers like FXCM decided they wouldn’t allow it anymore, FX Signals Live was discontinued in 2020.
As a replacement, iMarketsLive released their new online “Harmonic Scanner” designed to help follow market trends.
It’s a little technical but here’s a basic video that explains what it does:
It’s basically an online tool that scans the market in real-time and gives you alerts for different price patterns and trading opportunities.
But now you actually have to know what’s going on and make the trades yourself.
What Are iMarketsLive Products?
iMarketsLive sells you on the ability to become a successful currency trader.
Sure, you could try to learn it all by yourself.
After all, how hard could it be to click a few buttons and place a few trades?
Buy low, sell high.
Easy peasy, right?
Well, despite what you may have heard, day trading is MUCH harder than it sounds.
That’s why iMarketsLive offers a full suite of support and trading education.
Over 100 training videos and modules offer basic and advanced strategies on both Forex trading and cryptocurrency investing.
You can also access live trading rooms and watch experienced staff members place trades and talk about the secrets of their success (in 8 different languages).
Here’s a good overview video that explains the iMarketsLive opportunity:
Obviously that’s a company sponsored video, so take it with a grain of salt (don’t drink the Kool-Aid).
But I will say that iMarketsLive seems to provide a ton of help for their members, which is always a big plus.
Even CEO Chris Terry himself gets in on the action, holding Sunday night webinars that you can sit in on.
Additionally, iMarketsLive gives you access to their proprietary financial trading software.
As mentioned earlier, their Harmonic Scanner searches the market for harmonic patterns to exploit and profit from.
Their Web Analyzer does the same with cryptocurrency, for an additional fee.
And even though their trade-mirroring service is gone, iMarketsLive still provides other ways for you to copy what their experts are doing.
Swipe Trades will alert you to “Forex trade ideas” including risk management and expert guidance for an extra $17 per month.
Swipe Coin does the same but for Crypto trade ideas and info, for an extra $100 per month fee.
While that may seem pricey, keep in mind that it allows you to get solid trade ideas sent right to your phone without having to do any of the legwork.
Because let’s be honest: If you knew what you were doing when it comes to trading, you wouldn’t be paying this company $165 a month or more for the privilege.
Long story short: The more you pay iMarketsLive, the more training and tools you get.
Speaking of which, here are your membership options if you wanna join:
iMarketsLive Membership Options
*Mobile users: scroll left/right on table if last column is not fully visible
|DIGITAL CURRENCY MONTHLY||HFFX MONTHLY||PLATINUM PACKAGE||ELITE PACKAGE|
|INITIAL PAYMENT||INITIAL PAYMENT||INITIAL PAYMENT||INITIAL PAYMENT|
|MONTHLY PAYMENT||MONTHLY PAYMENT||MONTHLY PAYMENT||MONTHLY PAYMENT|
|WHAT YOU GET||WHAT YOU GET||WHAT YOU GET||WHAT YOU GET|
|DC Academy||HFF Academy||IML Forex and Crypto Academy’s||IML Forex and Crypto Academy’s|
|DC Scanner||HFF TV||IML TV (All Sessions)||IML TV (All Sessions)|
|SwipeCoin App||PipTalk||Harmonic Scanner||Harmonic Scanner|
|IMLTV Sessions||High Frequency Forex||Swing Trades & Night Owl Sessions||Swing Trades & Night Owl Sessions|
|Pip Talk (Basic)||Pip Talk (Basic)|
|High Frequency Forex|
Hey, nobody said day trading was cheap.
To be fair, iMarketsLive does offer a 7 day, 100% money back guarantee to all of its subscribers.
If you’re dissatisfied with their service in any way, you can get a full refund of your membership fee within a week of signing up.
iMarketsLive gives their Customers a “2 & FREE” option as well — if you personally refer 2 people into buying a monthly membership, your membership is free.
So: If you can convince a couple people that Forex trading is awesome…
You don’t have to pay anything to get the iMarketsLive training and support.
Sounds good, but here’s something you should know from a guy who’s been in the trenches:
My Forex Trading Experience
The risk factor in Forex trading is something we shouldn’t just gloss over.
As mentioned in iMarketsLive’s disclaimer, you can easily lose all your invested money in addition to the monthly fees.
I should know — years ago, I was heavily into Forex trading and learned everything I could about it.
Technical analysis, risk management, chart indicators — you name it, I tried it.
And that’s not all:
I kept daily trading journals, learned how to read candlesticks, recognize trends, and was a particular fan of using 2ATR for a trailing stop loss.
Along the way, I traded almost every currency pair, chart timeframe, and read every trading strategy book I could find.
(Here’s my personal favorite, along with this one originally published in 1930.)
I should also mention that I paid a small fortune for different trading systems, tools, and “secret” strategies from so-called experts.
I’m FAR from the smartest guy in the room — but I’m not a complete Muppet either.
I wasn’t just gambling (only risked 2-3% max per trade) and I gave Forex trading everything I had for almost 3 years straight while I was still driving truck.
And even though I had periods of profitability, in the end I always lost money.
Not to mention I also got sick of the highs and lows of trading — feeling like a God one week, damn near suicidal the next.
Out of desperation, I finally resorted to following a mirror-trading service which ultimately blew up and reduced my trading account to almost nothing.
It was my own dumbass fault, but that’s when I decided to hang up my Forex trading gloves and look for something else.
Also contributing to that decision was realizing that after being on countless online trading forums — I wasn’t alone in my frustration and misery.
The only ones who seemed to be making any consistent money in Forex (besides the banks and hedge funds), were the guys selling me the tools and systems.
Just like during the gold rush back in the 1800’s, the real money wasn’t in digging for gold — it was selling the pickaxes and shovels to the desperate and hopeful.
Now obviously, there ARE successful Forex traders out there.
So just because this ex-truck driver with a GED couldn’t do it, doesn’t mean that you can’t make it work.
Like any other form of retail trading, some folks make money and some folks lose money.
All I’m saying is that Forex trading is hard as hell.
As a general rule, if you enter a gambling game against a lotta peeps who are more experienced and skilled than you are…
It’s a safe bet that the odds aren’t in your favor.
Don’t say I didn’t warn ya.
Pros: Why Join iMarketsLive?
✓ Potential for serious income without recruitment.
Almost every MLM in existence requires you to recruit and grow a huge downline if you wanna make the big money.
The reason is simple:
Your time is limited and there’s only so many hours in a week that you can use to sell products to people you know.
Forex trading is different in the sense that you could gain (or lose) a lot of money all by yourself, without ever having to recruit anyone.
✓ No pants required.
While most MLMs involve you dragging around a box of products to various houses, iMarketsLive is something you do from your desk or smartphone.
This is a very modern MLM and the entire thing (training + products + support) is all available online.
Never having to leave your house to run your business is a definite advantage.
For example, go try selling Amway products with no pants — I’m guessing it wouldn’t turn out so well.
✓ Plenty of training materials.
Between all the videos, training modules, tutorials, and live help sessions, iMarketsLive probably offers more actual product support than most other MLMs.
If you’re willing to invest in your education and want a crash course in Forex trading, there’s a vast bucket of knowledge here waiting for you.
Cons: Is iMarketsLive a Scam?
✗ First off: Solid trading advice don’t come cheap.
Around $200 up front plus $170 a month is what it’s gonna cost you for the most basic level of membership.
That’s over $2000 per year.
But if that trading advice makes you ten times that, it might be worth it.
✗ You could lose a lot more than your monthly fees.
Yes, plenty of people lose money in MLMs (most do).
But they generally lose money from not being able to recoup their minimum purchase requirements and monthly fees.
With iMarketsLive, in addition to your membership fees, you’ll also have to risk your own trading capital to play the currency markets.
And you might lose all of that money too.
In fact, thanks to the way that leveraged trades work, you can actually lose even MORE than the full amount of your Forex trading account.
✗ A strong fishy odor.
Can you trust iMarketsLive?
Well, sometimes the best way to predict the future is to look at the past (or just Google the present):
• iMarketsLive CEO Chris Terry has a previous connection with Zeek Rewards which the SEC had to shut down for fraud in 2020.
• The VP Alex Morton has a long history with MLM companies like Vemma Nutrition that had to settle for hundreds of millions of dollars with the FTC for being a pyramid scheme. You should check out this revealing article on Morton that shows the reality of being a professional MLMer when he was with his last company.
• iMarketsLive is banned as unauthorized in Belgium, and also received warnings from other countries like France.
• When I first published this article, iMarketsLive had an F rating (very bad) from the Better Business Bureau due to having so many complaints.
Then all of sudden they had an BBB rating of “A”, mostly thanks to a bunch of positive reviews that showed up around the same time (many on the same day).
Coincidence? Yeah, right.
As another reviewer pointed out, prob’ly because IML asked their members to spam their BBB page with positive reviews to drown out the negative ones.
Nice try fellas. Not shady at all.
Also can’t forget that iMarketsLive is an MLM which means recruiting other members is highly encouraged.
Here’s one of IML’s top earners explaining in detail how it’s done:
Ask yourself: If it was just about forex trading, why teach people how to recruit at all? Why not just trade forex and make a ton of money?
I dunno… maybe cuz:
Most retail traders lose money in the long run, so the real money is made by getting other people to join.
Is it really, though?
- 87% of all IBOs make an average of $4.30 per month (you read that right, less than $5/mo).
- 98% of all IBOs make less than $115 per month.
- Only 0.3% of all IBOs earn more than $30k per year.
Not exactly what I’d call a high-probability trade.
But if that doesn’t make you puke in your mouth a lil’, this industry might be for you.
If, however, you’re looking for a more legit and reputable business model… my two cents?
Is Forex Just a Scam or a Real Job?
“Invest at 1200% per annum with Forex!” “500% profit in 3 days . ” Did you see such ads? And did you click on them? After all, if they exist, that means that someone clicks on them. And what happens: someone buys into unrealistic conditions and, what a surprise, loses all investments. Of course after all he/she considers the Forex market to be a fraud. Others do not click on such ads – it’s an obvious scam, as the whole Forex. So is Forex scam or not?
Scam is a set of activities aimed at reaping the benefit (usually money) from a fall guy, who is left with nothing. Scam organizers also seek to keep the fall guy from understanding that he is being cheated.
What is Forex?
What is Forex at all? Many of those who confirm “It’s a scam!” do not even know this for sure. Let’s start from the beginning, i.e. from its definition.
In the 70th years of the 20th century the states began to exchange currencies freely. Their transactions have formed the whole market, i.e. the Forex market (abbreviation from FOReigh EXchange) – a market for the exchange of currencies. The market mechanism is simple: to buy cheaper, to sell more expensively. Money serves as goods. At the same time money supply doesn’t take place, transactions have the speculative format.
In the late 90’s individual traders entered the market, the Internet and the first trading platforms occured. Today, your neighbor James or colleague Mary can turn out to be right-down Forex traders.
Forex is an over-the-counter (OTC) market. It is not situated in a particular location, but it combines banks, brokerage houses, funds and individual traders via the Internet.
Trading is conducted around the clock. Market participants trade with special programs – the platforms or terminals, where they monitor the quotes, predict price movements, open and close orders. Forex does not work only on weekends and some holidays.
Forex is often compared with the stock market. Imagine a stock exchange. What do you see? The famous Wall Street, hard-headed businessmen in expensive suits, rabbit-warren of dealers shouting tenders, monitors with innumerable quotes, nail biting and a lot of money. Сurious to relate, mentioning of Forex evokes an image of slot machines.
It is considered to be a deceit, however, this market is much stronger than stock exchange, and has substantial advantages:
- It is possible to trade on Forex with the deposit from $1, while it is necessary to invest at least $1000 in stock exchange.
- The daily volume of currency trading on Forex makes about 4,7 trillion dollars – it is in 16 times greater volume than in stock market.
- Forex works round the clock, so it is possible to trade after the main work. Trading session on the stock market lasts only 8 hours.
- The account on Forex is opened in several minutes while on the stock market this process can run over several weeks. At the same time the trader has to sign a set of documents.
- A leverage on Forex can reach 1:1000-2000, on the stock market – maximum 1:20.
So, trading on the Forex market is easier and cheaper, but why does Forex have so many negative responses?
Why Forex is considered to be a scam?
Ignorance is no argument
Everyone knows the sad statistics of 95/5, where 95% of new traders drop their deposit immediately and just 5% of traders gain profits. Why is that? Because the market is full of dummies, dreaming to earn millions at once.
For example, John is fond of football watching. So he thought, “Hmm, I’ll start playing football. Why not? … I will run with a ball and coin money”. John paid some money to the city football club in order to play there a little. As a result, he broke a leg while playing. John felt aggrieved and decided that football is just a scam. “They broke my leg by design, I was on game after all!” – he says to his friends.
An example with football seems to be absurd. Who will hit upon the idea of becoming a professional football player just out of the blue? Then why do people, who do not understand even the mechanism of exchange rates formation, beleive that they will make a fortune on the Forex? Football needs physical training as well as the Forex needs the intellectual one.
A lot of people consider the trading to be a game by default. In some Asian countries Forex replaces the prohibited casinos and betting pools. But hazard is a bad companion on the currency market. “Players” go to market blindly, trying to “get out from under”, open a lot of orders, do not take risks into account. And then they share negative experiences on forums and blear the eyes of others. The loss does not mean that you have been deceived.
The first reason why you are sure that Forex is a scam: you haven’t enough knowledge and experience for trading. Beginners luck is not for Forex.
Not all newcomers have large sums to trade with. Therefore, brokers offer to their clients a leverage, i.e. a loan for openning of transactions for the sum many times greater than the sum on the trading account. For example, you have $10. This is not enough even just to open the transaction. Then you take a leverage of 1:100, and your balance increases hundred times. Now you can enter the market with one thousand dollars. Every pip of price movement will bring you a profit of 100 times greater than those without leverage. There is a reverse side – if the movement on the market is unfavoravle, a loss will also be in 100 times greater. The most common situation: a newcomer opens several orders at once, the positions go against him, and eventually they are closed by stop-out. A trader does not even understand what has happened.
The second reason is a lack of understanding of the leverage mechanism and noncompliance with the rules of risk management.
Who is a scammer?
Unscrupulous brokers and dealing centers can put spokes in trader’s wheel. “Kitchen” or a fraudster may discourage from trading once-for-all-time.
How to understand that the broker deceives you?
- The dishonest broker offers fantastic terms of trading with minimal commissions. Remember, there’s no such thing as a free lunch.
- He entices traders with big bonuses (for example, 250% of the deposit).
- The strong slippages often occur without objective reasons.
- The broker does not withdraw your earnings for some reasons.
- There are faults in the terminal, what may be a reason why your position is closed or you are going negative.
- The broker has no license.
- The dishonest broker offers a fixed spread. While on the real market the spread is constantly changing.
The third reason of disbelief in Forex is unfair Forex brokers. They can manipulate quotations or even steal money of investors.
Forex – the scene of action
Things can’t be all that bad. Forex became a favourite hobby, highly paid job or a springboard to a million state for many people. There are some celebrities on the Forex market, who inspire other traders.
George Soros, for example, became rich in one day. In “Black Wednesday” on September 16, 1992 when the pound sterling dropped significantly against Deutschemark, George earned more than one billion dollars.
Cynthia Kase has considerably increased her capital thanks to commitment, lack of passion and greed and became the successful and famous female trader. Cynthia has developed own technical indicators and on their basis trains newcomers.
In 2008, a trader Cheng Likuy, a native of the Chinese province of Shanghai, began trading with $ 400. A month later he had already 247 thousand dollars on his account. Cheng spent only six months for training. The trader did not disclose all his secrets, but said that he had used pending orders. Cheng also advises to limit the losses strictly.
In 2020 trader Ahmad Ariff opened a trading account and made a deposit of $ 1,000. Just in two weeks, Ahmad became a millionaire. He used an aggressive trading of major currency pairs. The trader continued to trade in the same spirit that led to the complete loss of profits. Forex has fantastic opportunities, but greed leads to losses.
On average, successful traders earn 15-20% of the amount of the initial deposit in a month. So the answer to the question “How much can you earn on Forex?” depends only on the amount of the trader’s investment.
In what way do successful traders differ from losers?
- Successful traders do not give up, even if the they sink first deposits. They analyze their mistakes and just keep on trading.
- Successful traders don’t seek to earn millions at once and don’t create illusions.
- Successful traders are constantly learning – studying the theory, practicing on a demo account, learning the real market, making correction of mistakes, adopting experience of successful colleagues.
- Successful traders do not panic. Loss is a normal part of the trading process, and panic leads to even greater losses. Successful traders always consider the risks and go out of the market at the right time.
- Successful traders do not consider the market to be a game. They do not dwell on the victories and defeats. For them Forex is work and earnings.
We do not claim that you are sure to earn on Forex your first million. And we do not insist that all brokers are honest. We’re just trying to show that Forex is not a global gamble, but a really functioning market. And it’s possible to make profits there, if you know how.
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