Vindication – FMA issues warning against dodgy Forex trading system

When I was at Truth I ran a couple of stories about some dodgy ratbags that operate under the name of OakFX. Here is the first one I ran:

Truth Page4 Mar28

Well, now I am vindicated with the Financial Markets Authority issuing a warning about them. 

The Financial Markets Authority (FMA) has issued a warning to the public about Phoenix Forex Limited and the Oak FX foreign exchange trading system.

FMA believes that Phoenix Forex’s claims about the level of returns made by its trading system are untrue, and that Phoenix Forex is misrepresenting the profitability of, and risks associated with, its trading system.  Investments promising unusually high returns are often not legitimate offers.  FMA urges caution by anyone considering dealing with Phoenix Forex.

Phoenix Forex is providing access to a foreign exchange trading system.  Under this system, the investor opens an account with a third party broker and the investor’s account is traded for the investor using algorithmic trading software.  Phoenix Forex undertakes extensive advertising, as well as making unsolicited cold-calls to potential investors.  FMA understands Phoenix Forex requires investors to pay a substantial up-front fee of up to $25,700 to subscribe for the system.

Phoenix Forex has previously advertised returns of between 50% to 65% per annum, and continues to promote the trading system as providing high returns.  In FMA’s experience, it is highly unlikely that this kind of investment can deliver such high returns.  Phoenix Forex has not been able to provide any evidence to support its claims of having achieved these returns.  Further, investments of this nature carry a high risk of loss of some or all of an investor’s capital, and losses can exceed the amount of the original investment.

In addition, any person who is in the business of providing financial services must be registered on the Financial Service Provides Register.  Further, a company which is in the business of dealing in futures contracts, including margin foreign exchange products, must be authorised by FMA.  Phoenix Forex is not registered as a financial service provider, and has not been authorised or licensed by FMA for any service.

Perhaps David McEwen might now stop running nasty defensive attacks on the Sharetrader forums about his dodgy software and spurious claims now that the FMA has warned people off.

If you have any stories about OakFX, their dodgy systems, David McEwen and/or any other staff including the dodgy ratbag Mark Brewer then contact me via the tipline.

 


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  • Gullible?

    I took a multi-year subscription to NZ Investor which doesn’t seem to arrive any more.

    Should I be worried about that investment?

  • cows4me

    Of course it’s horseshit. If it was good as these pricks claimed they wouldn’t want to share their system. $25,000 to get in the door, fucking please. I’m sure there are returns but as the adds say it “builds over time”, yeah I bet it does, builds up their account. Wouldn’t give the pricks 25c.

  • Col

    If anyone is looking for returns that sound so great, forget it. I heard Ross was saying 30% return if you put money in these places your looking for trouble. All those who have lost money in these, it’s your fault for expecting to higher returns.

  • Michael

    Russel Norman has a fascination with manipulating forex markets – will we see a FMA warning about him being dodgy and warning everyone to avoid him?

    • Kopua Cowboy

      John Key’s toenail clippings have more forex nous than “Give me back my flag” Norman

  • blokeintakapuna

    if it sounds too good to be true… it’s probably a Labour MP election promise

  • tarkwin

    I’ve been mulling over an Australian horse racing one from Oxford Data Services, anyone tried it?

    • Just Google “arbitrage sports betting’ and you will learn all! A very close cousin to micro trading – and just as profitable!

      • tarkwin

        I kind of thought that, but the brochure is so nice and glossy and the bloke who rang me was so friendly! Oh well I guess it’s back to the TAB. At least they pay out occasionally.

        • Cadwallader

          Yep. I had a client ask me about “Propellor Property Investments” I found it to be tried and hackneyed and based on the error that houses never lose their value. Anyone else here looked at this outfit?

          • Ratchet

            I keep getting calls for those pricks because I happen to have an 0800 number that people think belongs to them. Idiots. LISTEN to the ad on the radio and call the right fucking number!

          • GazzW

            Their constant radio ads on ZB with a stroppy woman blathering on are enough to put anyone off. Almost as bad as the ad that’s been on for months on ZB exhorting you to buy an apartment in Freemans Bay for just a $1000 deposit with nothing to pay for xxx months and then let the tenant pay off your mortgage while you sit back and reap the inevitable capital gain.

    • James Howlett

      I get these offers semi-regularly in the post. The major issue is that they are printed on such glossy paper they’re not even really helpful when I want to get the fire started.

      • cows4me

        Yeah and they not even any use if you run out of shit paper.

        • LabTested

          You wipe our cows arses? The Fonterra payout must be huge if you run to that extravagance

  • Never in the dark…..

    While I know there potential to make money in forex and hedge markets, it doesn’t happen passively.

    Sadly the same folk who fall for those foreign ‘software support’ phone calls will fall prey to people like these. Only this will cost them a lot more.

  • CheesyEarWax

    They offer the same product as SkyCity does, i.e. gambling. Except that SkyCity doesn’t promise great returns or charge you $25k entry fee.

    • opusx

      And seriously, would you want to put $25k of your dosh in that smarmy looking pricks pocket?

  • nudgy

    Are UFX Markets.com any better Whale?

  • unitedtribes

    I used to take my daughter to the races when she was about 10 years old. She quickly devised a system which was real winner every time. I paid for the bets. If the horse lost I lost. If the horse came in we shared 50/50

    • opusx

      Brilliant:-)

    • Bad__Cat

      My daughter has the same system with my Lotto tickets!

  • Heynonnynonnyno…

    Tell us all about Mark Brewer and his limousine service with “executive models”

  • peterwn

    IMO forex trading is straight out gambling unless you have a valid business to hedge, or unless you thoroughly understand the markets. Hence these ads promising massive profits by forex trading annoy me. Also if the promoters of ‘systems’ are so successful with them, why do not they keep quiet about them and rake it in.

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