Just wanted to clarify a few things re the scheme i mentioned last night – seems i raised more questions than i answered. Main question is why would someone or a group of people want to do this – someone suggested to me that it may be a tax avoidance ploy in that they’re going to take a percentage of profits from all these accounts they have funded in the first place which may be classed as ‘gifts’ & non-taxable. The site, though, in the FAQ’s seems to suggest that large players in the market suffer from brokers ‘stop loss hunting’ and a lot of smaller accounts would avoid this. I dont know enough about either of those scenarios to offer an opinion but i’m sure some of you guys do.
I also just wanted to confirm the order of what actually happens regarding setting the accounts etc up;
First thing to do is get the account set up with forex4free – will probably come up in German but there is a link on the home page which takes you to a ‘link’ page for the English version.
You then need a Liberty Reserve account which is where the funds will (hopefully) eventually be paid.
After about 3 days your account balance with free4forex should show the $500 deposited & you then need to deposit that into your liberty reserve account. This is done from a link on the home page. From then on the balance should begin to grow & as well the growth from trading you get $25 added to it for every person who joins via your referral link. This helps you get to $1500 quicker which is the point at which you transfer the money to a brokerage account.
This is then traded up to $7500 at which point anything over & above that amount is paid to you as profit with 25% taken by the original benefactor.
As i say this is my understanding of it taken form the information on the forum here so & its definitely worth registering on there. It may well not amount to anything but my attitude is that all i’m giving up is my email address and a few minutes registering on the sites.