How scammer Forex Traders make their money
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.