Here’s a question that came up over the weekend.
Why do so many Live Trading Services not have Performance Records and/or Refund Policy if no profit during first month.
I cannot say that I’ve done any sort of study of live trading services, so I can’t specifically say what the most common policies are or are not. Also, not having discussed the subject with folks who run those types of services, I cannot speak to their motivation for providing or not providing performance records and/or refunds. I can, however, suggest a few possible reasons:
Regulations - I work for a Registered Advisor, which restricts what can and cannot be provided in prospective customer documentation. That could apply to some of the service providers in question.
Trial Periods – A lot of service providers offer trial periods to allow folks to get a feel for what it is that they do. If a customer already goes through a trial then presumably they know what they’re getting and refunds shouldn’t be an issue.
Non-Specific Recommendations – Some services don’t say “buy at X” or “sell at Y”. As such they cannot really offer up performance records.
Like I said, I’m no expert on services like this. There are probably other legitimate reasons whey no performance data is provided or refund availability. Of course there are other less legitimate ones. I certainly encourage those reading this post who have experience in these matters to provide their insight.
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About the Author
John Forman, author of this blog, has traded for more than 20 years, is a professional market analyst, and authored The Essentials of Trading. He is an active participant in trading forums, consults for trading related businesses, as published literally dozens of trading articles, and has been quoted in a number of books and in the media.
** See John’s full bio.
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