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Old 04-03-2011, 04:18 PM  
$5 submissions
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Is online FOREX just a gian SCAM?

Is it a scam or is it just people losing money moaning and whining? Maybe the article below would be more credible if there's a side by side comparison of loss rates broken down by investment types. Anyway, posting it here cuz it's an interesting read.

Source: http://www.latimes.com/business/la-f...7.story?page=1

Quote:
An estimated 615,000 Americans are dabbling in foreign currency trading, encouraged by advertising from the two biggest U.S. brokers, FXCM Inc. and Gain Capital Holdings Inc., both based in New York.

Combined, FXCM and Gain have about 260,000 accounts, a third of them in the U.S.

These customers are losing money in spectacular fashion.

At FXCM, 75% to 77% of customers lost money each quarter last year, according to newly required disclosures to the Commodity Futures Trading Commission. At Gain, which operates through http://www.forex.com, the number of unprofitable customers hovered between 72% and 79% every quarter last year, according to its filing.
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