I am writing this blog to spread awareness about the forex markets and how some so called forex brokers are using this not so much regulated industry to cheat people off their hard earned money.
Let me introduce you with one of such brokers iforex.com.
I am writing this with my personal experience with this forex broker. It all started a couple of months back when I saw a big add on my ymail account drawing my attention towards it. totally unaware of forex industry, curiosity drew me into clicking that ad and that was the moment I curse today and will always be cursing. You will soon get to know why!! Just keep reading.
I clicked on their advertizement which asked me to fill in my personal details one of them being my phone number. The same day I got a call from their call center guy. I will not take the liberty to mention any names here! I was in a coffee shop sipping at my coffee. I thought let me learn a few things about forex markets. So, I allowed his cold call. The guy sound like the forex is the key to be millionaire; and its the silver bullet to be rich even when market is down unlike stock markets. Well that sounds pretty interesting, got hooked. Who would not, when you are told that you would make profit no matter markets are down or up. He told that iforex.com is a reputable broker and it charges impressive spread of 3 pips. Like brokerage is to stock markets; pips is to forex markets. Well at that time I did not know whether 3 pip is impressive, but later I knew that most of the brokers charge less that 1 pip and they all are reputable and trustworthy. This was not all. To my shock they were charging not even 3 but 5 pip spread which is worst in the industry. So here was there first lie, which could only have become visible after opening account with them. I was lured into opening the accound with them by depositing 500 USD for a start. Now their second lie was about to come up visiblr. What I was told was that on deposit of 500 USD, I will be getting a bonus of 100 dollars which I could after I had done an initial trade of 200000USD, but after opening the account it turned out to be 1000000USD. SO this was their second lie. Well I already had my 500$ with them along with scanned copy of my driving licence which they asked for as identity proof.
Now I started exploring the forex markets on the web, learning about them so that I can make some profits. I was moving cautiously. Now let me write down a few observations about their so called trading platform. It sucks big time--its crappy--even I reported some bugs to them.
Well despite a spread of 5 pip, I started making profit. By profit I mean that the amount on the right top corner on their site was shown increasing. But if I earn 1 dollar I was paying them 5 dollar. Days passed by and I kept on learning about how forex works through internet. There are lot of resources available like babypipis.com. Now I started realising that there is something fishy about iforex.com. And I started complaing of high spreads, no bonuses, no payback--any forex trader will know these terms. They told me that if I deposit 1500 USD more they will reduce my spread to 3 from 5. I was still high on the prospect of earning more and neglected the dangers lurking ahead. So I went ahead depositing 1500 more. By this time I had 2500USD shown in that very right left corner. One thing I forgot to mention- when I deposited this extra 1500 , someone from iforex called me and requested me to tell the call centre that he persuaded me into depositing more money so that he could earn some incentive. This was more fishy, but I still did that.
Now my spread was 3 pip. Well I studied a lot into forex markets and by lot I mean really a lot.
Days passed by, I played the game well.
But right behind my head, there has always been this feeling what if this iforex thing is just a fraud. So I wanted to withdraw my money now. And I expressed it to them. Irritatingly, they asked my ID proof to be sent again. Well now let me tell you what were they upto. They only wanted to delay the process. Though I sent my id proof again I was not able to withdraw money.
They delayed the process and in the meantime they showed, on their platform, that I lost my money in the market. Want to know how?? Well here it is in nutshell-
The truth is that I was not putting my money in the market at all. It was all like a game. Iforex.com was showing me that I was making profits and when I asked to withdraw my money back, they showed that I made a loss. What They did was exersiced their control on their platform to reach the stop loss limits so that I could loose. And When I was making huge profits I was not able to close my deals on their platform. I wondered to myself, if all this exists in an artificial environment. They could control the platform from their side; I have experienced that all by myself. Seriously, I went back and forth with 8 different members of their support team, a new person each time. That was hard earned money. After this experiece of mine I have come to this conclusion that Iforex.com is certainly a scam or a fraud and if it is not a scam, then it is a cheat and liar for sure.
So guys if you are investing in forex markets , do research well before choosing a forex broker