206

It's a scam. It's called a money mule. Typically the way this will work is that the scammers will make a fraudulent money transfer into your friend's account. Your friend will convert the funds into Bitcoin and send it off to the scammers. After a few days or weeks, the bank will figure out that the original transfer was fraudulent and come after your friend'...


89

The first thing that pops up when you open your link is a disclaimer: 66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. 66% isn't a very reassuring number for blindly following anonymous strangers ...


88

It’s a money-laundering scam, and your friend is likely to get into serious trouble, and possibly lose a lot of money, if he takes part.


72

Because if they allow chaining, you can do the following scam: Deposit money via a credit card (possibly stolen). Withdraw money via PayPal. Withdraw the money out of PayPal. Trigger a chargeback on the credit card. So if the credit card company awards the chargeback (which they tend to do if the card was stolen), then the platform is out the ...


63

Well, consider it from the other side. Why would a trader be willing to share trades? Consider the following scenario. The reference trader makes a trade in a low volume market. The trade is published so that everyone can see it. Multiple people copy the trade as best they can, but ... The price moves due to the uncommon level of demand. The ...


41

Your friend should go to a lawyer. The lawyer can then make a deal with the government where your friend testifies as to the activities. Your friend may be asked to communicate with his "employer" to get them to do more illegal things. Or required to turn over his email, etc. to the authorities so that they can communicate with the "employer" and get them ...


29

This is definitely a scam Most electronic fund transfers are reversible, whereas bitcoin transactions are final. Your friend will successfully receive the money and transfer it as bitcoin. When the original transfer is reversed for being fraudulent (or even worse proceeds from an illegal act) the money will be reclaimed from your friend's account. They will ...


20

Indices aren't physical instruments that you can trade, no. The most common way to "trade" an index is to buy shares of a mutual fund that tracks the index. Some mutual funds can fully replicate an index, making the tracking very close. Others will track an index by sampling the index (buying parts of the index that make up a large portion of the ...


19

The current quote is $996 x $1000 The bid represents the highest price someone is willing to pay ($996) The ask price is the lowest price someone is willing to sell at ($1,000) As a buyer at the current price, you will pay $1,000 If you want to make $20, your sale price must be $1,020. That means that the bid price must rise 2.41% (24/996) in order for your ...


14

The ask price is the price the stock is sold at, and the bid price is the price people are willing to buy it for. So when you bought the stock for $1000, and you want to sell it for $1020, then that would happen as soon as the bid price is $1020. However, the bid-ask spread is not a constant. So when the bid price is $1020, then the ask price is not ...


13

As other people already replied: it's a scam. Now you ask: "what can he do?" He needs to alert the authorities, explain that he was unaware of the fraud, and ask the police what he can do to help stop it. The police may be able, with his help, to stop it and arrest the scammers. At a minimum, he can escape legal prosecution against himself.


12

Contracts For Difference (CFD) are not investing. They are a form of gambling tarted up with the appearance of investing by the platforms that market them. It is not a good idea to trade in CFDs. I haven't run any numbers, but you'd probably be better off just gambling at a casino. The house edge is probably lower (if you choose your game wisely). Since it ...


12

Buying shares of stock (whether common stock or preferred stock) just before the ex-dividend date (but after the dividend has been announced) is called buying the dividend because the market price of the stock increases by the amount of the dividend (and no, this increase is not because of government regulations or stock exchange rules or any such thing, it ...


10

Remember the 1st Law of Technical Analysis: "For every analysis there exists an equal and opposite analysis." And the 2nd Law of Technical Analysis: "They're both wrong." Technical analysis in the absence of hard data is just a lot of hand-waving meant to dazzle CNBC viewers and rope would-be day traders into paying for colored-plot-filled trading ...


10

I think there's (also?) a different reason than in the accepted answer. In general, credit card companies don't allow merchants to do cash-equivalent transactions, because they expect those to be done as cash advances. So if you could deposit with a credit card and then withdraw cash, you'd bypass the implications that come with cash advance (interest ...


10

If you buy a preferred stock before the ex-dividend date and you own it on the ex-dividend date then you'll get the dividend. You could own the stock for as little as one day before being entitled to the dividend. With new issues, if it pays a quarterly dividend then the first dividend may be less since the accrual period is less than 3 months.


9

There is also (or maybe even most important) a legal reason: As soon as a company transfers money from a source to a different place (like it would happen in this case), it fulfills the definition of a bank in many countries like all EU countries. And this requires the company to fulfill all of the strict rules a bank has to fulfill (regarding funds security,...


8

Your bank doesn't care about your immigration status, it cares about your tax status. You're a US tax resident and will open a US-resident account, not an international account (regardless of where the money comes from).


8

Disclaimer: I work (programming) for a company with a business model very similar to eToro. We are basically competitors. Opinions are my own and not the views of my employer As most of the answers have stated, the CFD is a dangerous financial instrument that may not be appropriate for your needs. These risks are inherent to the CFDs, not to the idea of ...


7

Depends entirely on the stock and your perception of it. Would you buy it at the current price? If so, keep it. Would you buy something else? If so, sell it and buy that.


6

As a relatively recent nonimmigrant visa holder (O1), I was able to open an ETrade brokerage account without problems. I have full tax residence in the USA so have an SSN, and a credit history so it was no problem. Later, as a greencard holder, I opened IRA accounts with them, too. Again, there were no issues as I had all the information that the IRS ...


6

This strategy is called trading the 'Golden Cross' if the 50 day SMA moves above the 200 day, or the 'Death Cross' when the 50 day SMA moves below the 200 day SMA. Long-term indicators carry more weight than shorter-term indicators, and this cross, in a positive direction signals a change in momentum of the stock. You will not catch the very bottom using ...


6

The person you're copying is getting inflated returns because of your actions happening right after his. Additionally, there may be others doing the same mirroring as you. This means that such a successful trader may only be successful because of the people mirroring him from behind (he buys the stock, and immediately other people buy it and it goes up, ...


6

I thought it might be fun to add more detail on how a trade happens. I used to work as a programmer for day traders, and that was a wonderful crash course on how markets work on the second-to-second level. At its core, a market is a set of buyers and sellers seeking to make trades with each other, and they declare their intentions by making bids (an offer to ...


6

"wheat $707 for 5000 bushels (27.2 kg for 1) 1 kg = 0.00519 $, but I buy 1 kilogram wheat from local supermarket for one dollar" It seems you have a misunderstanding of what these prices represent: These are not customer-facing prices you could get yourself at a local store, these are bulk prices available in specific quantities and locations. They ...


6

If you own an ETF, mutual fund or stock when the stock goes ex-dividend, you'll receive the dividend/distribution on the Pay Date.


Only top voted, non community-wiki answers of a minimum length are eligible