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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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

To read Cam’s previous articles click on his name in blue.