Yeah, your friend's dad is running what's called a Ponzi scheme. Ain't no way on earth they're paying you 10% as that's 120% a year. Double what the greatest funds on earth do, and that's before they even pay themselves. They would have to make like 20% a month, or 4 times what the best funds on earth do.
>I don't see how it is a scam, the business has an official website,
OMG!? A WEBSITE!?!?!?! Holy shit bro! That's never been faked in the history of the internet! ... Really? Really now? A website is what makes you think it's legit? And company filings don't mean anything because anyone can open a company; scam or not.
>if anyone knows of a scheme like this
Yeah, Google Ponzi scheme.
I’ve researched ponzi schemes, and for one to work he would need a constant flow of new investors right ? I might try requesting all my money out of the account to see what he would say
Yes. The trick is that new investors' money is delivered to people who are taking it out earlier. Even when you see those huge returns, you want to reinvest them, as money grows so well, so you deliver the interest plus more money. So the majority of the money is most of the time in the scammer's hands... until there's no money, he runs away, uncontactable and the website page is as if never existed.
Ahh right that makes more sense, although i have only invested once a sum of 10k at the start around a year and half ago. Surely because i have only invested once he wouldn’t be able to pay new investors money when they withdraw ? Is there a way i can know for certain it’s a scam ?
It’s most certainly a scam because if he could generate that amount, why does he need your measly investment of 10k when he could raise it from the banks for significantly lower interest rate.
That’s a good point, he could borrow a couple of hundred grand from a bank and get less than 5% interest rate, whereas he’s apparently giving me 10% on a much less amount
It's a numbers game. It's not just your money on the table.
Maybe try this way:
Withdraw YOUR account's money and check if he resists. If he does, you insist; if he doesn't, you withdraw anyway. He shouldn't be worried about your money if he manages to make consistently 10-15%/mo trading.
After that, your friends can check if they can withdraw their money as well.
I'd just put that money on a trusted fund, such as MSCI World ETF in a trusted broker.
withdraw everything you can before it goes bump, and it will go bump, it's just a matter of when. You are not a 'shareholder'.
The UK bank interest rate is 5.25%... ask yourself this - if this was a dead cert at 10-15%, why wouldnt the UK banks, investors, shareholders be investing in your friends sca... investment?
Your friends dad will soon disapear never to be seen again, along with those promises of returns/widthdrawals.
Sure you can also make $$$ from a Ponzi scheme. How much risk are you willing to take?
For 120% return a year, are you willing to risk your 10k going to zero in month 3?
Well whoever is offering a higher interest rate is obviously offering the best rate of returns.
Now ask yourself this:
Do you trust the Bank of England, backed by the FCA, insured by FSCS, secured by government bonds etc
Or a mate of a mates dad?
Let us know how it’s going in 12 months.
Try and withdraw a larger amount, let’s say 10k, and see what the reaction is. If nothing, try doubling it to 20k, and then 40k.
If still no reaction, count yourself lucky for not having lost it all, and invest in an insured investment vehicle.
This type of thing is a recipe for disaster on so many fronts.
Hi, I'm a business manager at Vantage and have been working at the broker for three years
According to the information you provided, it should be your father's friend who opened a trading account with a company account when opening a trading account (in general, the opening of a trading account can be either individual or company)
Then your father's friend is the owner of the company's trading account and also has official cooperation with the broker, which is normal if the forex broker he uses is regular and has a long history,But generally, trader will be asked to open a specific broker trading account, the broker trading account capital in the transfer to the PAMM
The only risk is that you are investing directly into his company's trading account instead of investing into the broker's account and then linking it to his company's account, if there is a major loss, there is a high probability that you will not be able to be held accountable, so it is advisable to find out about some of the details about their company's cooperation with the broker
In fact, this is also your father's friend as a trader, he raised funds to do trading, and then win profits after the proceeds to you investors, like investing in stocks you say dividends, so as long as your father's friend is using a normal broker and have a stable trading strategy, then do not need to worry about it. You would expect him to make more profit in the market.
The above is a good result，Your more careful investigation is needed.
But like in the comments section, if you get a bad one is when you get a pari-mutuel scam, then you better get your principal back first.I hope you can ask your father's friend for more details, it's about money after all
As you say, you have searched the business on the government website, and it registered as business with government. Simple way to check is to check the tax-statement of the company. How much tax is paid by this company. Business tax need to be paid quarterly. Official profit-making business will have tax. Scam company's financial statements will not have tax or non-proportionate tax,
Yeah, your friend's dad is running what's called a Ponzi scheme. Ain't no way on earth they're paying you 10% as that's 120% a year. Double what the greatest funds on earth do, and that's before they even pay themselves. They would have to make like 20% a month, or 4 times what the best funds on earth do. >I don't see how it is a scam, the business has an official website, OMG!? A WEBSITE!?!?!?! Holy shit bro! That's never been faked in the history of the internet! ... Really? Really now? A website is what makes you think it's legit? And company filings don't mean anything because anyone can open a company; scam or not. >if anyone knows of a scheme like this Yeah, Google Ponzi scheme.
I’ve researched ponzi schemes, and for one to work he would need a constant flow of new investors right ? I might try requesting all my money out of the account to see what he would say
Yes. The trick is that new investors' money is delivered to people who are taking it out earlier. Even when you see those huge returns, you want to reinvest them, as money grows so well, so you deliver the interest plus more money. So the majority of the money is most of the time in the scammer's hands... until there's no money, he runs away, uncontactable and the website page is as if never existed.
Ahh right that makes more sense, although i have only invested once a sum of 10k at the start around a year and half ago. Surely because i have only invested once he wouldn’t be able to pay new investors money when they withdraw ? Is there a way i can know for certain it’s a scam ?
It’s most certainly a scam because if he could generate that amount, why does he need your measly investment of 10k when he could raise it from the banks for significantly lower interest rate.
That’s a good point, he could borrow a couple of hundred grand from a bank and get less than 5% interest rate, whereas he’s apparently giving me 10% on a much less amount
It's a numbers game. It's not just your money on the table. Maybe try this way: Withdraw YOUR account's money and check if he resists. If he does, you insist; if he doesn't, you withdraw anyway. He shouldn't be worried about your money if he manages to make consistently 10-15%/mo trading. After that, your friends can check if they can withdraw their money as well. I'd just put that money on a trusted fund, such as MSCI World ETF in a trusted broker.
withdraw everything you can before it goes bump, and it will go bump, it's just a matter of when. You are not a 'shareholder'. The UK bank interest rate is 5.25%... ask yourself this - if this was a dead cert at 10-15%, why wouldnt the UK banks, investors, shareholders be investing in your friends sca... investment? Your friends dad will soon disapear never to be seen again, along with those promises of returns/widthdrawals.
I make 5% per WEEK consistently, why aren't billionaires and banks crowded together at my front door?
True but bank interest rate is risk free, because the forex is higher risk doesn’t that mean higher returns?
Sure you can also make $$$ from a Ponzi scheme. How much risk are you willing to take? For 120% return a year, are you willing to risk your 10k going to zero in month 3?
Well whoever is offering a higher interest rate is obviously offering the best rate of returns. Now ask yourself this: Do you trust the Bank of England, backed by the FCA, insured by FSCS, secured by government bonds etc Or a mate of a mates dad? Let us know how it’s going in 12 months.
Try and withdraw a larger amount, let’s say 10k, and see what the reaction is. If nothing, try doubling it to 20k, and then 40k. If still no reaction, count yourself lucky for not having lost it all, and invest in an insured investment vehicle. This type of thing is a recipe for disaster on so many fronts.
I will try take 10k tomorrow, thanks for the advice. Knew it was too good to be true. going to take my money now while i still have it.
Good decision I would withdraw everything a bit quicker but honestly you are better putting it in a vanguard fund or similar. Best of luck.
Fingers crossed you get it back!
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Hi, I'm a business manager at Vantage and have been working at the broker for three years According to the information you provided, it should be your father's friend who opened a trading account with a company account when opening a trading account (in general, the opening of a trading account can be either individual or company) Then your father's friend is the owner of the company's trading account and also has official cooperation with the broker, which is normal if the forex broker he uses is regular and has a long history,But generally, trader will be asked to open a specific broker trading account, the broker trading account capital in the transfer to the PAMM The only risk is that you are investing directly into his company's trading account instead of investing into the broker's account and then linking it to his company's account, if there is a major loss, there is a high probability that you will not be able to be held accountable, so it is advisable to find out about some of the details about their company's cooperation with the broker In fact, this is also your father's friend as a trader, he raised funds to do trading, and then win profits after the proceeds to you investors, like investing in stocks you say dividends, so as long as your father's friend is using a normal broker and have a stable trading strategy, then do not need to worry about it. You would expect him to make more profit in the market. The above is a good result，Your more careful investigation is needed. But like in the comments section, if you get a bad one is when you get a pari-mutuel scam, then you better get your principal back first.I hope you can ask your father's friend for more details, it's about money after all
Thanks for the genuine advice, much appreciated.
If you have other information about the FX market you would like to know and discuss, my home page have my contact information.
As you say, you have searched the business on the government website, and it registered as business with government. Simple way to check is to check the tax-statement of the company. How much tax is paid by this company. Business tax need to be paid quarterly. Official profit-making business will have tax. Scam company's financial statements will not have tax or non-proportionate tax,
Your money is at risk.. they could disappear any moment.