Forex

[pendragon]

Anyone use forex affiliate? Can you give a quick explanation of what it is? Foreign currency dealing ?

 

[yesterday]

yes, fx trading.

I've never tried these guys but there are many others I've tried and some of the ways they make money (especially the less reputable ones) are as follows:

Person signs up to trade with broker.
Person puts in money (gets charged small fee for transfer by broker)
Person trades foreign exchange futures market - buys or sells at price which is either side of the market (spread goes to broker, which helps broker alleviate any risk he is taking if he doesn't hedge immediately)
Person closes out deal (again loses spread to broker)
Person usually loses money on trade because puts in stop loss that broker alters price to fill. (broker takes losses as his gain).
Person usually loses money because of overtrading and has to stop out. (broker knows this happens and does very little to stop human behaviour - why should he - happily takes spreads and can usually smell a profit a mile off from one of these traders).
Occasionally person makes a bit of money, transfers out to bank (broker small fee.).
oh, and broker takes interest on money deposited by person over the months/years they trade.

This is very unfair to most brokers, but is a sort of spoof description to let you know what does happen below the surface of some.

I imagine therefore that it's a profitable affiliate scheme

yesterday