Hi all this is a massive thread for me to sit down and read, i have come across a website called Futureway trade, I wont link the site i do not know if i can, it is basically a copying website where a trader makes the investments and your account is copied has anyone heard of this as it looks to me as if it's a scam, they claim you can make lots of money, so it must be sorry if this is the wrong place to ask!
It would appear looking at it, you get to follow a trader, for a few days you can't take any money lout of the account for 7 days but on the third day you have to buy the signals which cost £500?
Anyone got any advice on if it's a scam?
Where are they located? Who is the broker you open an account with and where are they located? Who regulates them?
Why even bother if they look like a scam?
As yourself this - if you found you have some genuine ways of making money consistently in the markets that can be exploited by more capital than you have available would you either:*
a) Go speak to people in the industry and get some additional leverage or funding on a first loss basis or negotiate some deal with a fund etc.. (whichever is appropriate) and make serious $$$$?
b) Go to some copy trader site and allow yourself to be followed by a bunch of retail traders in return for the site giving you a few bucks in kickbacks?
On the off chance some person who has found an edge really does exist but is also too stupid to know how to exploit it and/or maybe is in Russia or India or something and more limited ability to do so then maybe copy trading might be useful but surely finding those people and separating them from the noise from the rest is going to be a challenge in itself. How much info does this site you mention give you about these traders you could copy re: their past performance?
Lets take a look at a well-known copy trader site:
https://www.etoro.com/copytrader/
now look at the disclaimer at the bottom:
67% of retail investor accounts lose money when trading CFDs with this provider.
Now lets look at some big retail FX/SB/CFD firms:
https://www.cmcmarkets.com/en/
70% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.
https://www.ig.com/uk
70% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Doesn't look like the punters at the site that allows you to copytrade from "top-performing traders" do much better overall than the site that just allows the punters to place their own bets.
Maybe there exist a few traders on that copy trader site or some other site who are genuinely worth following, question is how are you going to find them among the others who might have just gotten lucky for a bit or who are hiding behind unrealised losses etc... and if there are really loads of people you can simply follow and make money from then why do the majority of clients on that site still lose money at a similar rate to most of the other bucket shops out there?
Perhaps if you're keen you could deposit a small amount and check them out, if they're frequent traders then it shouldn't take too long for you to see them either making money or just churning your account.
* the same question applies to any "broker" claiming to offer you an advisory CFD service or similar - why would these top professional traders waste all their day on the phone calling up retail clients trying to get them to invest if they're genuinely making great returns from short term trading? Where did these guys work as a trader before they became phone monkeys at an advisory CFD shop?
) but Wealthify seems to have a much nicer interface.
