I have recently become aware of a marketing and forex signals company named freedomrocks.com that has attracted quite alot of attention.  First off let me say I do not believe Freedomrocks.com is an outright scam. I am posting it in the scam forum because it is the most appropriate place to put a warning. I wanted to take some time to write about what I see as a rising trend in the forex industry that will most likely continue to grow in the future. I think we have an obligation to expound upon the truth that others may not have the experience to fully grasp.

Freedomrocks is a forex signals provider but more importantly it is an MLM (multi-level marketing) structured company. For information on this type of arrangement see here: http://en.wikipedia.org/wiki/Multi-level_marketing. MLM or network marketing as it is also referred to has the ability to produce rapid growth and Freedomrocks has indeed experienced rapid growth. Looking around their website and at their executives and having experience with MLM's in general I can tell you that their primary business is marketing and has little to do with forex trading. They have a lucrative commission structure whereby members pay $100.00 per month for their membership but can make much more than that through sales and marketing of their product (forex trading signals). Members have the ability to receive commissions based on the number of new members they recruit and the sales their recruits make. This elicits a psychological phenomenon common to MLM structures, whereby the actual product viability gets lost in the allure of creating lucrative revenue streams through product sales and marketing. Well, for this message we are interested in exploring product viability, not marketability.

Their trading signal strategies include hedging the EUR/USD and USD/CHF supposing they will move in tandem and exiting on small shifts into profit while also counting on small amounts of interest earned on the carry position. Their other strategy is to trade with no stop loss, a strategy which attempts to overcome the swings or waves in the market by letting trades become very negative if necessary and counting on the price to return to profit. In my experience to have any viability both of these strategies must be implemented with EXTREMELY low levels of leverage, meaning profits if you are that LUCKY will be very tiny. That is a best case scenario however, because in my opinion most people will eventually lose their entire account if they continue trading the freedomrocks signals. It is important to be able to distinguish between equities market viability and foreign exchange market viability because they are very different markets, albeit bearing some useful correlations. I do not recommend no-stop loss strategies in the retail forex market.  It appears members will learn little about the forex market or money management or how to be a profitable trader from freedomrocks.com. The system simply tells you when to buy and sell and if the market goes the wrong way you will have no stop loss in place. If some geopolitical fundamental event occurs that they have not correctly calculated into their position and the market turns sharply negative you will have to hope that the market turns your way while watching your investment dwindle. If the market never does turn your way your entire account will be wiped out on a single trade. Inevitably, this will occur but the brilliance of this scheme is that most people will be able to realize small profits long enough to become convinced of product viability.  In my opinion that is a very poor trading strategy. Literally anyone can give signals with no stop loss and have a decent winning streak until their account finally gets wiped out. You do not need a signal service to give these kind of signals. Bottom line is this, in my opinion freedomrocks is a terrible place to trade the forex market. However, if you are looking to make some money on the hype of network marketing and don't mind that the product is of mediocre quality freedomrocks is a decent opportunity to make money through sales and marketing.

Posted By piyush08 on 27 Apr 2009 07:08 AM
pretty sad this.. ppl cheating others.. my regrets with you..

Posted By terminatorfx on 08 Sep 2009 09:03 AM
I am shocked to say the least! I have many friends who swear by their pyramid market model, they kept trying to rope me in...and I was tempted! The business side of the company sounds ok, by listening to my friends, but the FX side sounds like a nightmare! From what I understand by you all, it sounds like a company that is placing a finger in every available money making pie! Business models is one thing, but to offer FX services without having the simplest ideas of trading is ludicrous.

I love the no stop loss method of trading "....hmmm, ok so its dropping....dropping....drooping....it's ok, this is the strategy, all part of the plan, I shouldn't panic, it should start to come back up anyyyy little moment now, and when it does ho! ho! watch out Maceys!.......oh....oh no....oh crap...oh double crap, I lost it all!

I have just seen that they do a managed account program through the Mass Vision Introducing Broker (MVIB) who is apparently NFA registered...and their counter parties are FXCM - GFT - IBFX ...isn't this all very interesting, ...hmmmm, I mean do you think such reputable brokers are aware that at the end of the line there are these Cowboys, for want of a better word? I suppose not.

Posted By terminatorfx on 08 Sep 2009 09:03 AM
I am shocked to say the least! I have many friends who swear by their pyramid market model, they kept trying to rope me in...and I was tempted! The business side of the company sounds ok, by listening to my friends, but the FX side sounds like a nightmare! From what I understand by you all, it sounds like a company that is placing a finger in every available money making pie! Business models is one thing, but to offer FX services without having the simplest ideas of trading is ludicrous.

I love the no stop loss method of trading "....hmmm, ok so its dropping....dropping....drooping....it's ok, this is the strategy, all part of the plan, I shouldn't panic, it should start to come back up anyyyy little moment now, and when it does ho! ho! watch out Maceys!.......oh....oh no....oh crap...oh double crap, I lost it all!

I have just seen that they do a managed account program through the Mass Vision Introducing Broker (MVIB) who is apparently NFA registered...and their counter parties are FXCM - GFT - IBFX ...isn't this all very interesting, ...hmmmm, I mean do you think such reputable brokers are aware that at the end of the line there are these Cowboys, for want of a better word? I suppose not.