Identifying Deceptive Businesses: Trading Expert Peter Brandt Outlines Three Significant Warning Signs of Fraudulent Firms
In a recent development, skilled commodity trader Peter Brandt has issued a warning about untrustworthy proprietary trading firms known as "Sim for Payout" scammers. These firms, Brandt explains, often target inexperienced traders with promises of fast payouts and funding [1][2].
Brandt identifies three red flags to help traders identify these scammer firms:
- Promising live funding in a matter of days: These firms claim to provide quick funding to traders almost immediately. However, such promises should raise suspicions as they are often too good to be true.
- Using lots of screenshots and flashy bells and whistles: These firms attempt to create hype with excessive screenshots and flashy marketing tactics. While such displays may seem appealing, they should be viewed with scepticism as they could be manipulative.
- Employing "pimp affiliates": These firms rely on aggressive and often fake promoters or affiliates to lure new traders into their schemes. These promoters may use high-pressure sales tactics to convince potential traders to invest.
Brandt emphasizes these points to help traders protect themselves from such scams. He declines to name specific companies but shares these criteria as key warnings.
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In addition, Brandt advises that a large amount of capital is not necessary to start a trading career. He suggests that the best way to become a good trader is through trial and error. For beginners, he recommends trading on hypothetical accounts to gain experience before venturing into live trading.
Elsewhere, Ripple has gained important new recognition from US authorities, but that's a story for another day.
[1] - Source for the information about the red flags [2] - Source for the information that Peter Brandt declined to name specific companies
- Skilled commodity trader Peter Brandt has identified three red flags to help traders avoid scammer firms, such as "Sim for Payout," which promise live funding in a matter of days.
- Instead of relying on quick funding, inexperienced traders should be wary of firms that use excessive screenshots and flashy marketing tactics, as these could be manipulative.
- Furthermore, traders should question the use of aggressive and often fake promoters or affiliates, whom these scammer firms employ to lure new investors.
- According to Brandt, a trading career can be started with minimal capital, and the best way to become a good trader is through trial and error, starting on hypothetical accounts for practice before moving to live trading.
