I know that in most jurisdictions you need to be qualified and licensed to give financial and/or investment advice. But what about all these self proclaimed traders who run businesses where they "teach" other people how to trade?
I ran in to a person this weekend who "mentors" beginners in the forex market and how to trade profitably. Whilst speaking to him it was blatantly apparent to me that this guy didn't really have a clue. He just repeated parrot fashion cut and paste sound bites you can find all over forums like this, such as "support & resistance, round numbers, fibs, pivots, pull backs and price action etc, and then wham bam, we're all millionaires".
I actually asked him what qualified him to train others, and he said he was a self taught successful trader who trades from home, and teaches others as a sideline (yeah, sure it's just a sideline).
Now this guy is obviously not unique, and especially online there are thousands of people giving out trading advice to the unsuspecting sheeple who follow without question, but what are the legalities? Doesn't teaching others how to trade, or even the selling of signals and systems, constitute financial advice and therefore don't these people need to be licensed? Surely all these clowns with magical systems and courses for sale on clickbank are not licensed (nor even remotely qualified).
Just curious if anyone here has any knowledge about this.
I ran in to a person this weekend who "mentors" beginners in the forex market and how to trade profitably. Whilst speaking to him it was blatantly apparent to me that this guy didn't really have a clue. He just repeated parrot fashion cut and paste sound bites you can find all over forums like this, such as "support & resistance, round numbers, fibs, pivots, pull backs and price action etc, and then wham bam, we're all millionaires".
I actually asked him what qualified him to train others, and he said he was a self taught successful trader who trades from home, and teaches others as a sideline (yeah, sure it's just a sideline).
Now this guy is obviously not unique, and especially online there are thousands of people giving out trading advice to the unsuspecting sheeple who follow without question, but what are the legalities? Doesn't teaching others how to trade, or even the selling of signals and systems, constitute financial advice and therefore don't these people need to be licensed? Surely all these clowns with magical systems and courses for sale on clickbank are not licensed (nor even remotely qualified).
Just curious if anyone here has any knowledge about this.