Savvy commodities trader Peter L. Brandt has published an important X post to warn his followers against a scam wave that he expects to be coming soon. These scams will be not about Bitcoin but about trading in traditional financial markets, he stated.
Brandt’s warning about sham prop trading to community
In his tweet, the skilled trader reminded the community about his earlier warnings related to the sham proprietary trading sphere and multiple “aspiring” scammers operating in it. Brandt wrote that the warnings his published were well justified.
Peter Brandt says that now the time has come to start warning traders against scammers who will likely start promoting their training and coaching in trading soon. In particular, he warned that scammers will be claiming that “they have been profitable trading futures markets”. In this case, Brandt suggests, the best way to check if those achievements are real is to demand their IRS Form 1256 filings and not to take their word for it.
Bigger warning earlier today
In a couple of tweets published earlier today, Brandt tagged several X accounts that he believes to be scamming users in the prop trading industry. He indeed demanded that they produce their above-mentioned IRS filings: “it is time for you to produce your IRS forms 1256 to prove that you have made the money that you claim to have made. Put up or shut up please.”
Several hours ago, he published a bigger “HUGE WARNING” to aspiring traders about scammers who have begun “heavy promotion in recent weeks”. “DON’T BE CONNED,” he tweeted, since “a lot of con men will be entering the space.”
In order to see if a firm that claims to be skilled at trading futures and wants to help new traders in improve, it is important, Brandt wrote to “DEMAND proof that they have been profitable” and not to believe their claims.
Brandt shared a particular list of proofs that traders need to demand from those firms in that case: “A. Copies of their personal IRS Form 1256 (the form used to declare futures trading profits), or
B. A years worth of month end statements from a registered FCM.”
Related
Traders should also check whether “an FCM is registered by searching their name on the National Futures Association web site,” according to the tweet.