As of 03/04/10 it appears that the Forex Macro Scam was indeed that, a Ponzi scheme or HYIP site, where one trader for example would lay down $1000, which the company would then use to pay back a different guy who laid $1000 down the day before.
For the most part of 2009 Forex Macro went under the radar, but around December that year, customers were starting to see the tell-tell signs of long delays in service and payment and then no payments, and then on 03/04/10 their site went down along with all forms of communication.
Talkgold.com had warned consumers the previous year but it’s impossible to inform everyone of what is or isn’t a shady business. As a result consumers should really just do the research themselves, especially if it involves you placing large sums of money down.
One good source for such info on forex scams is the BBB, the Better Business Bureau, based in the U.S who document and advise customers of all manner of businesses that have been reported as operating unduly.
Also, MAKE SURE the company is registered by an authorised body, such as the FSA, SEC, NFA etc. Very few forex trading companies are, so check at the footer (the bottom) of their website before considering to give it a try.
Another way to test how responsive and professional an online currency trading platform is, is to give their customer service a call, and put to them some important questions such as:
1. How long have they been a Forex Broker?
2. Who are quoting the rates? Multiple banks or the broker?
3. Is their company in good financial condition? Will they show you their balance sheet? The Forex Macro scam is a good example of how traders were left with empty pockets after the company collapsed.
3. Do they have an outstanding relationship with reputable banks and who are these banks?
4. Is it possible to lose more money than I put into my account?
5. Are the spreads variable or fixed?