How scam­mer Forex Traders make their money

Sunday Observer - - NEWS -

BY SUN­DAY OB­SERVER RE­PORTER

Ever won­dered how the flashy young men who come into the coun­try to teach about for­eign ex­change trad­ing make their money?

A thread, se­quence of short sen­tences with pic­tures, has gone vi­ral on so­cial me­dia plat­forms as it ex­plains how scam­mers pos­ing as Forex Traders are mak­ing mil­lions from their schem­ing way.

Ac­cord­ing to the thread which rings truth by Phi­lani Mbatha, trad­ing in for­eign cur­rency is a le­git­i­mate un­der­tak­ing as banks use it to neu­tralise their prof­its against for­eign economies. He, how­ever, stated that there was a need to show how peo­ple were be­ing scammed.

Mbatha re­vealed how he was promised wealth by a ‘trader’ who wanted to make him the youngest mil­lion­aire by the end of the year through trad­ing.

Telling his could-be bene­fac­tor that he was not in­ter­ested as he was aware that R1 mil­lion could not be made within a year, he was shown how it was done.

“I change my name on all so­cial me­dia plat­forms to Phi­lani Forex Mbatha,” he wrote as how he was sup­posed to be­gin the ruse.

He was then sup­posed to post fake trad­ing re­sults to en­tice his age mates and at­tract them to the mes­sage and ask how he did it. He said the trader gave him some of his large amounts of cash to show off his earn­ings on so­cial me­dia so that peo­ple think it re­ally works.

After that, he was to es­tab­lish a Forex com­pany un­der his name so that peo­ple would think that he had made it, whereas his prin­ci­pal would fund him.

There­after, he would hold a free be­gin­ners class to at­tract a lot of peo­ple who would be taught things they could find on google for free.

Us­ing s l i des f r om https://www.babyp­ips.com/ , the as­pir­ing mil­lion­aire then down­loads and uses these for sem­i­nars once peo­ple start at­tend­ing the pay­ing ones.

These down­loaded pre­sen­ta­tions are mod­i­fied to have let­ter­heads of the trader’s com­pany and a few words changed to make them look like they be­long to him. “So groot­man says he makes close to R1mil­lion to R2mil­lion just by do­ing ex­actly what I have told you.”

The charge per sem­i­nar is E8 000 to E10 000 as peo­ple get hooked from the free sem­i­nar.

He said on a good week he (the prin­ci­pal trader) at­tracts about 100 to E250 peo­ple who want to l earn about f orex. “Re­mem­ber these guys who go around the coun­try hold­ing free en­try sem­i­nar?” Call­ing on for peo­ple to do the maths, he said just 100 peo­ple pay­ing E10 000 make the E1mil­lion.

“Lets as­sume the above peo­ple are from Pre­to­ria only.”

Mbatha wrote that the ‘trader’ makes his mil­lion with­out even us­ing the trad­ing plat­forms he talks so glow­ingly about.

Dr Sale­bona Sime­lane.

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