100% Gains in less than a year... Consistently!

amrrashad

Trader
Sep 26, 2013
3
0
12
Hi everyone,

First time poster here and I'm not even a beginner, I know less than that about Forex.

Just had a quick question for you guys and was hoping you could help me out...

In Egypt, a few Forex trading companies have been emerging lately. I know of 2 of them, and their promises are the same. You give them your money, they trade and you get the returns while they keep part of the profit for themselves.

Now, I have a number of friends and relatives who do have investment accounts, and they all say they've doubled their capital in less than a year. Some already have, some are on their way.

Mind you, none of them has withdrawn all their money yet, everyone's happy watching the money grow and take out a little money from time to time for fun stuff (travel, gifts, splurging... etc)

It's been going on for about 3 years now, and some of them have stopped working; relying on the profits from their investments to keep them going month-to-month.

Am I the crazy one? Or do these sound like Ponzi schemes to you too?
Are those typical returns for managed Forex trading accounts?
Over 100%, Consistently (year over year)?

Would love to hear your opinions because people think I'm crazy for calling those companies out as scammers.
 

Enivid

Administrator
Staff member
Nov 30, 2008
18,532
1,355
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Odesa
www.earnforex.com
Sounds like ponzis to me. What fund stop-loss do those company implement? If they are allowed to risk the whole deposit, such returns (100% in less than a year) are definitely achievable with some good luck. If they claim to guarantee some part of the invested capital then perhaps they are lying either about it or about the source of their income (Forex trading vs. Ponzi scheme).
 

Rambo35

Confirmed PaxForex Representative
Apr 22, 2013
909
24
32
Canada
While it may be possible, in most cases it is not. I would be very careful in handing out capital to third parties. I think this 100% mark has become such a phenomenon within circles of newbies that they are fascinated by it.

I trade for a living and earn my 5%-7% every month consistently. I had years where I doubled and years where I did not which does not really bother me. Most who guarantees returns end up being scams.
 

amrrashad

Trader
Sep 26, 2013
3
0
12
@Enivid: I'm sorry, I don't know what 'fund stop-loss' means. From what I'm reading on the website, I think they only trade with 3% of the capital. The rest is safe & sound. However, there's a link to their wesbite below, please help yourself & take a look.

@Rambo35 & @Enivid:
The part that always gets me is that they've been generating 100% consistently for 2-3 years. If someone can do it for a year, I'd believe it. 2, maybe. But 3, consistently, and for every single person who has money with them, something is wrong!

Here's a link to the big player; it's called Star Capital Financial:
https://www.staraccount.com/

I'm sure you can judge the technical terms much better than I ever can.

What really stood out to me was the following statement on the homepage:
97% capital guarantee certificate from client's end balance issued by Star Bank and Star Account freezes automatically at 3% decrease from the account end balance

Digging online, I arrived at Star Bank's website here:
http://www.starbankonline.com/

Being a web programmer, I used a tool called "WhoIs" service; it tells you who the domain is registered to. Start Capital, and Star Bank are both registered to the same guy in Cairo, Egypt.

The tool can be found here for free, in case anyone is interested:
http://www.networksolutions.com/whois/index.jsp

After all this, am I right to arrive at the conclusion that this is nothing but a Ponzi?
 

Rambo35

Confirmed PaxForex Representative
Apr 22, 2013
909
24
32
Canada
It sounds like there is something wrong. You said they trade with only 3% of the capital so is the 100% return just on the 3%?. For example you have a $10,000 portfolio, but if you only trade $300 you could mislead your ads as you claim 100% profits on that which means you made $300 on a $10,000 account.

I would stay away from them.
 

amrrashad

Trader
Sep 26, 2013
3
0
12
It sounds like there is something wrong. You said they trade with only 3% of the capital so is the 100% return just on the 3%?. For example you have a $10,000 portfolio, but if you only trade $300 you could mislead your ads as you claim 100% profits on that which means you made $300 on a $10,000 account.

I would stay away from them.

Thank you Rambo35.

What I understand from everyone I know is, they are doubling their money (capital) in 10 months to a year.

I doubt there's any false advertising involved as I haven't seen any running ads; most of the info I have is from existing customers who have active accounts. All the information I added in the thread above is my own online research.

Thank you both for responding to my questions and helping me confirm that there's something fishy about what these guys are doing.

Best of luck in your trades