The US Federal Trade Commission (FTC) has fined Warrior Trading $3 million for operating day trading programs considered “misleading” to consumers.
On April 19, the US regulator said Warrior Trading, based in Great Barrington, Mass., made “misleading and unrealistic claims” to potential customers interested in day trading.
Day trading is a stock market tactic involved in selling and purchasing securities, with positions closed before market close. While this speculative activity can be profitable, it may also be riskier than longer-term investments — especially if you don’t do the appropriate research beforehand.
According to the FTC (.PDF), Warrior Trading and its CEO Ross Cameron allegedly “convince[d] consumers to pay hundreds or thousands of dollars for a trading system that ultimately failed to pay off for most customers.”
Consumers were sold trading strategies through online programs, ebooks, a live chat platform for members, and “masterclasses.” The programs were promoted through social media platforms including Facebook, YouTube, and Instagram.
Warrior Trading also made use of online advertisements. According to the regulator, examples include:
“Learn to Trade With Certainty Towards The Financial Freedom You’ve Always Wanted” “Learn How I Made over $101,280.47 in Verified Profits Day Trading Part Time in Under 45 Days Using