How do people like this earn money? Make money for other people?


#1

I’m interested to know? Is it just network marketing?


(Vladislav Kozub) #2

That’s a fake dialogue. Whilst you can theoretically make money on forex betting, in most cases you will lose everything you have put in so ideally never get involved in such things


(Chris) #3

They make their money by getting people to sign up and learn their “secrets”. It’s all bullshit and you’d just end up with no money.

EDIT: What @Vlad said.


#4

Sneaky! Cheers :+1::raised_hands:


#6

Basically what everyone else said.

It’s affiliate marketing, they get healthy commissions from CFD/Spread Betting operators.

Avoid, can’t stress it enough!


(Christopher) #7

@neovo, binary options, which is what I think the message was referring to, is not FX trading. It’s effectively gambling and is incredibly destructive. They use terms like binary options to provide a sense of credibility and legitimacy, but unfortunately it’s smoke and mirrors to disguise what is essentially a betting product.

What @vlad and @saf said is 100% correct, and if you’re playing with CFDs in particular, your losses can quickly exceed your initial capital outlay. i.e you can end up owing a lot more than your original punt. That’s not to say CFDs (contracts for difference) don’t have a function, but they are complex financial instruments, technically not aimed at retail investors, unless considered ‘sophisticated’. Markets move quickly, and you could be nursing large, possibly ruinious losses.

It’s late now but I will try to dig out and post a couple of articles that you might find interesting on the subject. Edit: [links now added]

FCA CFD Review

FCA Binary Options

Fake it till you make it: meet the wolves of Instagram - Guardian Long Reads


#8

This combined with “Revenue Share” model of some affiliate schemes tells you all you need to know about who’s really winning.

For most investors, CFDs are one of the worst forms of gambling because you can lose multiples of what you have, retail investors shouldn’t be exposed to them but here we are. It gets even worse when you consider mind frames like chasing your losses or feeling winning is guaranteed.


(Adam) #9

Well, you can get a free lunch by joining the team for our community lunches. DM @Toby if keen. Just sayin!


#11

If you want a idea of how lucrative CFD’s are look at CMC Markets final results for the year ending March 2018. Especially notice Revenue per active client was £2,964 and this is defined as “Revenue per active client represents total trading revenue from CFD and spread bet active clients after deducting partner commissions and levies”

Also consider that the FCA said this year: “around 76 per cent of users lose money on them”

https://www.ft.com/content/14b4cdd7-ff71-3d8f-8c20-47ebf9635a75