Anyone come across the TMS Capital managed FX account?

[MarkyMark321]

Hello All!

I'm just returning to trading after some time out, but in the meantime have been contacted a few times by a guy from TwoWaySpreads, part of TMS Capital. They have been trading an automated system for about 18 months with some extraordinary results. It all seems too good to be true to me, but they appear to be a reputable organisation, FSA regulated. They take 25% of the profit so make nothing if trading a losing account, and they trade the 6 most liquid currency pairs. Most trades are intraday. Worst drawdown has been around 12%.

Monthly performance is
Jan 11 +8.89%
Feb 11 +9.53%
Mar 11 +2.79%
Apr 11 +2.53%
May 11 +16.09%
Jun 11 +6.07%
Jul 11 +11.48%
Aug 11 +7.89%
Sep 11 +8.80%
Oct 11 +7.19%
Nov 11 +1.57%
Dec 11 +12.42%
Jan 12 +8.11%
Feb 12 +7.59%
Mar 12 +5.01%
Apr 12 -3.86%
May 12 +14.63%
Jun 12 -4.38%
Jul 12 +1.61%
Aug 12 -5.68%
Sep 12 +4.73%
Oct 12 +9.99%
Nov 12 -1.70%
Dec 12 +20.81%

Seems too good to be true. Anyone have any thoughts or experience of this account?
Mark

 

[pboyles]

Every managed Firex account is a scam. You will lose your money.

 

[hursta55]

Every managed Firex account is a scam. You will lose your money.

pboyles can you justify your comment ? Because I disagree.

 

[pboyles]

pboyles can you justify your comment ? Because I disagree.

Yes I can, and you're wrong.

 

[MarkyMark321]

Yes I can, and you're wrong.

Pboyles, you're right, it's just too good to be true. But I'm struggling to understand how an FSA regulated firm, covered by the FSCS up to 50k for forex trading could pull off a scam.

 

[pboyles]

Google 'montague pitman scam', also 'wills and co scam', 'blue index scam', the list goes on. Fsa regulation does not mean a company is reputable, far from it.

I don't know the company you mention but you can be sure you won't be getting those returns. The usual tricks are to not include transaction costs and perhaps not include open losing trades.

 

[pboyles]

Pboyles, you're right, it's just too good to be true. But I'm struggling to understand how an FSA regulated firm, covered by the FSCS up to 50k for forex trading could pull off a scam.

The 50k is only if they go bust, if they lose your 50k you don't get a penny.

 

[MarkyMark321]

Google 'montague pitman scam', also 'wills and co scam', 'blue index scam', the list goes on. Fsa regulation does not mean a company is reputable, far from it.

I don't know the company you mention but you can be sure you won't be getting those returns. The usual tricks are to not include transaction costs and perhaps not include open losing trades.

Thx pboyles, searching these pages, the same firm were pitching in 2007 and 2009. Heaven knows how they keep getting away with it.

 

[Fxvictim]

apologies for resurrecting an old thread but I wanted people to be aware of these shisters
I was an introducer to them through a broker. As a company, we work through our own network of introducers to submit clients to them. A deal was set up with payments agreed on. Only when we had submitted around £600k of business, did they then tell us they could only pay half of what we agreed.
Bunch of w@n43rs!!!
Keep well away if you want shafting!!!!

 

[MarkyMark321]

Thanks. Fxvictim.

 

[adrianbuthee]

apologies for resurrecting an old thread but I wanted people to be aware of these shisters
I was an introducer to them through a broker. As a company, we work through our own network of introducers to submit clients to them. A deal was set up with payments agreed on. Only when we had submitted around £600k of business, did they then tell us they could only pay half of what we agreed.
Bunch of w@n43rs!!!
Keep well away if you want shafting!!!!

Dear FXVictim,

Thanks for the message.
I am the Compliance Officer for TMS Capital and wanted to respond to this message.

Yes, you were looking to introduce customers to TMS Capital for a managed FX programme. We however had many concerns that the customers being introduced had little to no trading experience. Moreover, they were being instructed to invest their entire SIPP (pension) capital into the managed programme, without any experience of the risks associated with FX trading. We don't think that's constitutes suitable advise from the financial adviser network.

Many introduced customers were therefore deemed unsuitable and as such applications were either rejected or a smaller starting capital was suggested.

We would also add that we were also very uncomfortable with the earning demands from the network from introduced customers. You wanted to markup the spread charged by the broker so that you would earn approximately 5% of the client's invested capital each month. On an annualised basis, that's 60% commission for the year. So the managed programme needed to make 60% profit just to pay your network, with the client being at break even.

This commission burden will make it very challenging to make a profit for the investor, which is the overriding priority.

Because of these concerns, we suggested dramatically reducing the markup charged to the client. This suggestion was rejected, so the business was terminated before a single trade was placed, and all applications were cancelled.

We appreciate that a lot of effort was made finding the customers to invest, but we have to ensure that customers are suitable and are treated fairly.

We wish you all the best with your future introductions with other companies.

TMS Capital Limited