By how much have I been taken to the cleaners?

trader4939

Newbie
2 0
From a recommendation of a family member...I signed up with Alpari in September and ended up putting 5600USD in. I had an Alpari 'approved' third party money manager do the trading and have had the joys of receiving the daily confirmation emails coming through to see how badly they have been doing every working day.

September, October, November and January have been traded just about every day. I now find myself on 2734USD (with a further -142USD floating).

The idea was sold as an approximate 2% per month earner. I have no experience in the Forex market and was relying on the broker and their apparent expertise...I've learnt from that mistake.

Most of the daily confirmation emails show losses of between 100-200USD with the 'better days' of 10-30USD in money made. If it helps, at their advice, I set the leverage at 1:500, Classic 2 account and they seem to do USD/EUR trading and GBP/EUR currency recently.

I'm wondering if anyone would be able to kindly take the time and advise what they would do if they were in my situation? Should I drop this broker immediately?

Thank you very much.
 

pboyles

Legendary member
8,072 1,301
Take your money out immediately and have nothing more to do with anyone that's offering to make you money. Forex brokers make money from their clients losses, every time you lose they pocket the money, there is zero incentive for them to make winning trades as it comes out of their pocket. Therefore you will be cleaned out sooner or later, by the looks of it quite soon.

If you want to make extra money then get a second job, making money through forex 'investment' is not going to happen.
 

Sir Pond Life Dreg

Active member
135 125
1: Remove money from account
2: Go round to the family members house and raid their safe to make up for your losses
3: Give em a dig on the hooter and then shat on their carpet
4: Count yourself lucky it's not that much money and your experience was relatively cheap
5: Go forward in life knowing what a scam is having once been a victim. Don't fall for one again
6: (This one is the most important) DON'T TRY TO MAKE UP YOUR LOSSES BY TRADING YOUR OWN ACCOUNT
 

pboyles

Legendary member
8,072 1,301
Yes cheap lesson indeed, most people lose a lot more, some idiots even mortgage their houses to put money into managed forex accounts, that never ends well.
 

Vasco da Banana

Established member
699 120
Wonder if Alpari could even demonstrate or prove that these 'trades' actually existed? Why not just tell clients they've lost a percent or two every day?
 

Sir Pond Life Dreg

Active member
135 125
Yes cheap lesson indeed, most people lose a lot more, some idiots even mortgage their houses to put money into managed forex accounts, that never ends well.
Must be due another one soon, it seems like ages since the last one.
Perhaps people are getting wise t..... nah.
 

pboyles

Legendary member
8,072 1,301
Wonder if Alpari could even demonstrate or prove that these 'trades' actually existed? Why not just tell clients they've lost a percent or two every day?
I don't see managed forex accounts advertised on Alpari's website, maybe he funded an Alpari account and gave some clown permission to trade it. End result is the same of course, money down the drain.

CORRECTION..This will be it

http://alpari-forex.com/en/investor/
 

Lightning McQueen

Moderator
4,868 779
I don't see managed forex accounts advertised on Alpari's website, maybe he funded an Alpari account and gave some clown permission to trade it. End result is the same of course, money down the drain.

CORRECTION..This will be it

Investments
was just on the case too as to where they advertise. they do appear to advertise them through their new zealand branch, Alpari NZ Limited. no surprises new zealand getting involved in dodgy managed accounts again :whistling
 

Lightning McQueen

Moderator
4,868 779
I had an Alpari 'approved' third party money manager do the trading
did you even realise which part of the world you opened an apari pamm account? and know of the useless regulatory body who have jurisdiction here?

if you did realise, did you not ask yourself at any time why alpari uk don't advertise these accounts?
 

pboyles

Legendary member
8,072 1,301
was just on the case too as to where they advertise. they do appear to advertise them through their new zealand branch, Alpari NZ Limited. no surprises new zealand getting involved in dodgy managed accounts again :whistling
I was thinking the same thing, obviously there's some loophole there that they are taking advantage of.
 

Lightning McQueen

Moderator
4,868 779
I was thinking the same thing, obviously there's some loophole there that they are taking advantage of.

one would expect money managers in the uk have to be regulated and authorised, there may be many jurisdictions where they don't have such requirements. bananna republics spring to mind, as does new zealand. the dillard/pousa/ibcapital lulz is not yet a cold corpse.

from the alpari uk faq
Can I employ a Money Manager to manage my Alpari (UK) trading account?

Yes, you can. However, it is important that you take necessary precautions before choosing a Money Manager for your account. You should bear in mind:

• Research information on Money Managers on the internet, visit Forex forums;

• Ensure that you fully understand your chosen Money Manager's commission and/or fee structure;

• Check whether your Money Manager is regulated and authorised to carry out managed account services. Who is the regulator? (Keep in mind that some Money Managers may not be required to be regulated, depending on their jurisdiction);

• Seek references from other investors if possible.
it could very much look like an unregulated manager was in control of the Alpari NZ account?
 

trader4939

Newbie
2 0
Take your money out immediately and have nothing more to do with anyone that's offering to make you money. Forex brokers make money from their clients losses, every time you lose they pocket the money, there is zero incentive for them to make winning trades as it comes out of their pocket. Therefore you will be cleaned out sooner or later, by the looks of it quite soon.

If you want to make extra money then get a second job, making money through forex 'investment' is not going to happen.
Thank you very much for that.


Did you happen to Google Alpari before you gave them your money? If you did you might have thought twice about it.

http://www.forexpeacearmy.com/forex-forum/forex-articles/20937-nfa-slaps-alpari-us-200-000-a.html
I did spot that a week ago when I started delving into this all but this was referring to October 2011 specifically and surely doesn't relate to myself?


pboyles said:
I don't see managed forex accounts advertised on Alpari's website, maybe he funded an Alpari account and gave some clown permission to trade it. End result is the same of course, money down the drain.

CORRECTION..This will be it

Investments
I did create the account with Alpari and as you said, gave the permission to a third party. Couldn't find the company under the name I was told via Alpari's complete list of PAMM accounts page.


did you even realise which part of the world you opened an apari pamm account? and know of the useless regulatory body who have jurisdiction here?

if you did realise, did you not ask yourself at any time why alpari uk don't advertise these accounts?
The account was created with Alpari UK and as far as I am aware, the traders and company is in the USA. Their company domain is registered to an address in "Saint Kitts & Nevis" - therefore you were all right on that.

---------------------------

I have got the message I need to abandon ship with this trader/company. I guess there is nothing possible to recover the losses as how am I to know whether the trader encountered price adjustments or was trading against me. Nor do they have regulatory bodies due to their appointed location I guess.
 

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