Since 2014, TradingSchools.Org has received dozens of requests to review TradeNet.com and ColmexPro.com. Actually, let me rephrase…TradingSchools.Org has received nearly 200 requests to review both of these companies.
So why have I waited so long? And why am I connecting the companies together?
The truth is that both TradeNet.com and ColmexPro.com are irrefutably and inexorably intertwined. And they are owned by the exact same person: Meir Barak.
Before I talk about TradeNet.com, it is important that we first talk about ColmexPro.com.
You will not understand the form and function of TradeNet.com without first understanding the motivations of ColmexPro.com.
This might be a long read. Grab a cup of coffee.
What is Colmex Pro?
Colmex Pro is primarily a CFD stockbroker.
CFD stands for Contracts For Difference. What exactly does that mean? For the vast majority of us, when we either buy or sell a stock, we are transacting with a counterparty on a Finra regulated stock exchange.
Example: Suppose that you purchase 100 shares of Apple stock. In order for you to purchase Apple stock, you would need to have a seller of Apple stock. This is part of the fundamental mechanism of regulated stock markets — to match buyers and sellers. This is how price and ‘value’ is determined.
The exchange accounts for every single share of Apple stock. The exchange maintains a clearing ledger which accounts for ‘ who owns what.’
The exchange also has rules in place, that does a pretty good job of making sure that you get the ‘best price’ whenever you buy or sell your Apple stock.
Whenever investors congregate and transact on a centralized location, this tends to promote a healthy auction — where the spread between buyers and sellers is razor thin.
Tight spreads, transparency, and a fair auction are the hallmarks of a modern, regulated stock exchange.
Colmex Pro CFD’s do not operate on a United States regulated stock market exchange. Colmex Pro is a Contracts for Difference stockbroker. In practical terms, if you have an account established with Colmex Pro, and you purchase Apple stock, then you are never really purchasing Apple stock. You are simply the owner of a ‘tiny contract’ where Colmex Pro gives you a ‘tiny promissory note’ that if Apple stock increases in value, then they promise to pay you the price difference.
Contracts For Difference brokers have been banned in the United States since 1934. Back in the 1920’s, these Contracts for Difference stockbrokers were called “Bucket Shops.”
Instead of a person traveling to Wall Street to buy or sell a stock, they could access what was essentially a local bookmaker that would take the opposite side of the stock wager. The stock wager would be written on a slip of paper, then the piece of paper would be placed in a bucket. Hence the name, “Bucket Shop.”
Today’s modern bucket shops no longer use pieces of paper to record stock wagers, they have since upgraded to a simple spreadsheet. This might sound overly simplistic, but its plainly true.
Can you trust a Contracts For Difference Broker, aka Bucket Shop?
No, you cannot. Eventually, ALL bucket shops will fail. There many reasons why.
The most obvious reason is that eventually, the bucket shop will take a series of wagers and then through random chance, a ‘black swan’ financial event will eventually emerge, which renders the bucket shop insolvent.
The crash of 1929 is a great example. The stock market crashed and the bucket shops were exposed as nothing more than paper depositories. The stock transactions were exposed as worthless wagers, the owners of the bucket shops simply refused to pay the ‘short side.’
In short, the bucket shop owners collected the losing wagers. And refused to pay the winning wagers.
In the United States, bucket shops were banned in 1934.
But bucket shops aka Contracts for Difference brokers have never really disappeared. They just move around a lot. Today’s modern bucket shops operate on the internet, with their base of operations usually located in third world countries.
In countries that are usually rife with fraud and don’t give a rats ass about anyone living outside its borders.
Colmex Pro is located in Cyprus. A country that is best known for unscrupulous binary options brokers, shady Forex brokers, Russian mobsters, and drug money seeking to be laundered.
I am not stating that Comex Pro is an outright scam. But I am clearly stating the obvious: Colmex Pro is a bucket shop, located on a remote island best known for hiding illegal money, and providing shelter for criminal activity.
Are the Colmex Pro CFD’s investment quality products?
Not a chance. In fact, they are not investments at all.
Recently, TradingSchools.Org was contacted by an investor in Israel that filed a lawsuit against Meir Barak for “investment fraud,” as she described it.
So what exactly happened? The lady opened a trading account with Colmex Pro and proceeded to purchase a large block of stock. Her intention was to ‘buy and hold’ and her primary motivation was to simply collect and reinvest the quarterly dividend.
Over the course of the year, the company announced the dividends that she desperately needed to supplement her retirement income. All the while, she thought her account was collecting the dividends and her account was growing.
Her assumption could not be further from the truth. In fact, she received no dividend income whatsoever.
A CFD, or Contract for Difference does not pay any dividend whatsoever. Quite a surprise. And so she sued Meir.
A CFD is only a piece of paper. A wager between two parties. There are no guarantees attached. No regulatory bodies to enforce payment, no Finra insurance, nothing. You are bound to the whims of the counterparty. Which is located on an island best known for pirates, criminals, Russian gangsters, and drug money.
Legitimate stock exchanges hate CFD brokers
Contracts for Difference brokers bypass legitimate, regulated stock exchanges. They will always, eventually undermine investor confidence in a legitimate financial system. They siphon away actual investment capital, which is used by actual companies selling stock — and deliver this money to the feet of the ‘bookmaker.’ Its crappy for companies trying to raise capital, and its crappy for regulated exchanges trying to provide a safe method for buying and selling securities.
Contracts for Difference are also a crappy way to day trade. Why? A Contracts for Difference broker will always have a wider spread than a real exchange. The Contracts for Difference broker builds his profits into wider spreads and higher transaction costs.
Colmex Pro is no exception. Transaction costs to ‘day trade’ with Colmex Pro are comparatively high: fees are high, and spreads are noticeably wider than public exchanges (according to actual users).
When you LOSE, Colmex Pro WINS
Let me repeat that. When you trade with Colmex Pro, and you have a losing trade, the winner is Colmex Pro. Meir Barack is literally betting against you. He is actively hoping that you are a shitty trader. He wants you to lose. His business model could not survive if you are a profitable trader.
Additionally, Colmex Pro builds into each transaction a healthy size commission to Buy or Sell ($1.50 – $9.95 per trade)
And, Colmex Pro adds an additional layer of profit by artificially widening the spread to either Buy or Sell.
Let this really sink in: The way that Colmex Pro makes money is when you lose.
Once again, lets hammer this home…Colmex Pro is a bucket shop. They take the opposite side of each of your trades. They have no incentive to see you succeed.
Colmex Pro is owned by Meir Barack. When you lose, Meir Barack is making money.
Got it? Ok, now let’s move on to next part of this article. Lets now talk about TradeNet.com
TradeNet: We will give you money, and Teach You to Trade
What exactly is TradeNet? TradeNet is owned by Meir Barak. The form and function of TradeNet is to “teach traders to be successful” and to “make a lot of money day trading.”
TradeNet offers a live day trading room that is owned and moderated by Meir Barak. The live day trading room supposedly delivers winning day trades, where the audience is encouraged to ‘copy and paste’ the trades of Meir Barak.
Meir claims to typically earn $20,000 – $50,000 each month by day trading stocks:
In fact, during his promotional videos, Meir implicitly claims that ‘my students are also experiencing these same results by simply copying my trades.’
Of course, who doesn’t want to earn $20,000 – $50,000 each month? All you need to do is copy the trades of Meir! All of your money problems are a thing of the past!
All you need to do is subscribe to the TradeNet live trading room and pay the $399 monthly fee for Meir Barak’s winning day trades.
With most people, the alarm bells should start ringing. However, this is about to get even more outrageous!
Meir Barak wants to supposedly give you free money to trade! Yep, you are reading this correctly. He wants to give you all of the free money you will ever desire. And here is how it works…
Prop Trading with Meir Barack: the land of candy canes, unicorns, and leprechauns
Meir wants you to get rich. Just like him. All you need to do is buy one of his amazing educational packages, and in return, he will give you a fully funded account at Colmex Pro.
Yes, the Colmex Pro that Meir Barak owns. The same Colmex Pro that only makes money when you lose on your trades.
How exactly does this work?
The aspiring day trader has one of several different options:
Option 1) Give Meir $500 and he will ‘give you’ a $14,000 CFD magical paper trading account. You get to keep 70% of any magical profits earned on your CFD magical paper trading account. Max draw $700.
Option 2) Give Meir $3,000 and he will ‘give you’ an $80,000 CFD paper trading account. You get to keep 75% of any profits earned on your CFD paper trading account. Max draw $4000.
Option 3) Give Meir $6,000 and he will ‘give you’ a $160,000 CFD paper trading account. You get to keep 80% of any profits earned on your CFD paper trading account. Max draw $8000.
Option 4) Give Meir $9,000 and he will ‘give you’ a $240,000 CFD paper trading account. You get to keep 85% of any profits earned on your CFD paper trading account. Max draw $12000.
All of these accounts are with Colmex Pro. The very brokerage that is owned by Meir Barak. The same brokerage that only makes money when the investor loses money.
Think about this a moment…does any of this actually add up? The odor you are smelling is something fishy. Perhaps, rotten.
Colmex Pro wanted TradingSchools.Org to promote this ridiculousness
Recently, I had a really good conversation with Meir Barack via Skype. He is a true showman. A really good entertainer. He had me laughing and having a great time. He is a very seductive salesman/showman.
We both went over the details of TradeNet and Colmex Pro. The conflict of interest is truly stunning. And so I asked Meir — does anyone actually believe this stuff? You own TradeNet and you essentially promise to make everyone rich, but it simply cannot be true because you also own Colmex Pro. Meir just shrugged his shoulders and smiled. We both ‘got it.’
Next, our conversation turned to how TradingSchools.Org could promote both TradeNet and Colmex Pro. Meir was upfront and honest and stated that he would give TradingSchools.Org a 20% sales commission of any funds that investors deposited with TradeNet.com. Included below:Affiliate Agreement - Tradenet
Now, I am going to be honest with the audience…a 20% commission for all trading accounts is extremely tempting for me. I know the size of my audience, and if I were to endorse this product, it would be a massive bonanza for me. I would be ordering the unlimited shrimp cocktail, dancing naked on my new yacht with a bunch of bikini babes, and driving a new Ferrari.
And for only a brief moment, the temptation of the whole swindle kept me in a momentary dream state. But then, I thought about my old life. Back when I was an investment ponzi scam artist that stole hundreds of millions of dollars from ‘suckers’ and investment newbies. How all of those shiny objects that I worshipped never brought me any happiness or fulfillment. How empty I was on the inside, yet beautiful on the outside.
In the end, the ether finally lifted and my senses came back to reality. There is no fucking way I would ever put a stamp of approval something this outrageously zany.
Wrapping things up
Wow, what a long blog post. And confusing as hell. We covered a lot of topics and attempted to fuse together several concepts.
So to consolidate this blog post:
1) TradeNet is owned by Meir Barack and supposedly wants to teach you how to day trade for massive profits.
2) A person purchases the TradeNet ‘education’ and is encouraged to ‘copy and paste’ the trades of Meir Barack.
3) The TradeNet educational package is converted into a CFD paper trading account at ColmexPro.
4) Students are supposedly paid real money from any profits generated from a paper trading account.
5) The ColmexPro CFD paper trading accounts are owned by Meir Barack. An outrageous conflict of interest.
6) This whole scheme is probably illegal under the Commodity Exchange Act.
7) The scheme progresses through a series of affiliate programs where promotors are paid a 20% sales commission for money deposited into these paper trading accounts.
8) The affiliate promotors are not disclosing these massive commissions and further construct the pyramid through scam web promotions.
Thanks for reading! Would love to know your opinion and read your comments.