I always surf the web to see good investments especially in the world of forex managed accounts. What I see is that 99.99% of websites promise you incredible performances.
These are the steps they follow:
THE WINNING CYCLE OF SCAM MANAGERS
(Winning only for them not for investors!)
1 – They start a website with promises and tables that show you incredible performances.
2 – They attract in the trap as many customers as possible and this is an easy job and easy money, people looks at just ONE thing: PROFIT, and less at the risk involved.
3 – So they gain a commission as montly subscription or a performance fee at the end of the month. They usually play a risky strategy. In this way they collect some gains.
Maybe the account gain a 20% of profit and people must pay commissions for that profit.
4 – As long the account is in profit they still continue to have a good income from the customers, you pay them with a performance fee, usually 35 to 50% of new profits.
5 – After no a long time, maybe 3/4 months the account take a very big loss like 30-70%, this is USUAL whenever you play a big risky strategy like martingale or no stop strategy for instance.
6 – Investors are very disappointed and get out from the account having lost a lot of money, the only winner is the manager that keeps the performance fees, but sure is not pay anything for the big loss.
7 – The company of the managed account begin a new website with another name and the cycle start again : Rinse and repeat!
So this is the importance to have always a trusted website with performances certified and be involved in low risk strategy. Take a look at my topic TRUSTED FUNDS to check a good low risk strategy.