According to U.Today, renowned commodities trader Peter L. Brandt has issued a warning to his followers about an anticipated surge in scams within the traditional financial markets. Brandt, known for his insights into trading, emphasized that these scams will not involve Bitcoin but will focus on traditional financial trading. He highlighted the presence of fraudulent activities in the proprietary trading sector and cautioned traders to be vigilant.
In a recent tweet, Brandt reiterated his previous warnings about the sham proprietary trading industry, where numerous scammers are operating. He stressed that his earlier alerts were justified and urged traders to be cautious of individuals promoting trading training and coaching services. Brandt advised traders to demand proof of profitability from those claiming success in futures markets, specifically by requesting their IRS Form 1256 filings.
Brandt's warnings come amid a rise in promotional activities by scammers in the trading industry. He tagged several accounts on social media that he suspects of fraudulent behaviour, challenging them to provide evidence of their claimed trading profits. Brandt emphasized the importance of verifying the legitimacy of firms claiming expertise in futures trading by demanding documentation such as personal IRS Form 1256 or monthly statements from a registered Futures Commission Merchant (FCM).
He also advised traders to verify the registration of an FCM by checking the National Futures Association website. Brandt's cautionary message serves as a reminder for traders to exercise due diligence and skepticism when approached by individuals or firms offering trading expertise and services.