There are a lot of books,pundits and websites that are starting to guarantee amazing returns by giving you nifty future tips.These scamsters and fraudsters have only one game plan which is not to make you money but to take your hard earned money.Note there is nobody who will give you nifty future tips that will make you money.Simple reason is that if these jokesters knew a way to make money,they would be making it themselves rather than wasting time and effort giving you tips.Have you ever heard of a successful person in a field giving you sureshot tips in generating easy wealth.Then why should these websites give you tips for paltry sums.These websites have a very simple business model which is to lure common people to their scams by paying money for a month or a year then giving them useless shit which will lose you more money.

The problem is that there is no regulation to stop fraudsters from doing the stock tip scam so there is a large profileration of these tipsters.Their investment is very low – all it takes is money to make a website which can be done for less than Rs 10,000 and then try to lure people.Even if they manage to get 2-3 people in their scam they are already in the money.The more people they manage to get ,the more money they make.The only loser is the person who subscribes to this nifty future tip scheme.Note forex trading is another popular scamming scheme which has ads posted on top websites (You might even see it on this website as I have google adsense enabled).These websites will be advertizing on the very website (mine) which is criticizing them and calling them frauds.The reason is that they don’t care as long as even 1 person comes to their website and gives them money.

If you want proof of their scam,read the prospectus of a forex trading company which came out with an IPO in the US recently.It gives details on the business model which is based on luring people to lose money by trading on their forex sites.This is not that big a scam since these guys are making money on brokerage rather than selling useless nifty intraday tips .

How Foreign Exchange Brokers Make Money by Luring Gullible Retail Investors

Retail investors  always lose money in FX trading particularly as Foreign Exchange Trading is a zero sum game compared to equities.Huge amount of leverage makes attracting gullible investors even more easy.The FX retail trading platforms have proliferated in recent days with Retail Trading having multiplied by 900% in the last 10 years to around $100 billion daily.FXCM.com one of the popular trading platforms is coming out with an IPO in the US.These companies have benefited hugely on the back of suckering retail investors.Note these firms need a constant supply of new suckers (sorry customers) in order to run their companies.Here is a article from FT which describes the modus operandi of these firms taken right out of their handbook (IPO prospectus ).

Note these firms are heavily regulated and don’t do anything illegal,its just the lack of knowledge that results in retail investors losing money.These companies advertise heavily as can be made out from their huge sales/marketing expenses to gain new suckers for their casino.India too is now seeing increasing marketing spend from these companies offering high leverage and low expenses.