Web 2.0 Strikes! Forex Contest Cancelled

In what seems like a first, popular trading site myfxbook has cancelled its monthly Demo Trading contest due to concerns about the contest’s sponsor. The monthly trading contest is based on having a revolving broker sponsor. Traders open demo accounts with the sponsor and the best performing accounts can win $8500 in prizes.

The recent contest was being sponsored by CommexFX, a CySEC regulated broker, which would seem legit enough. However, negative comments about CommexFX from Forex Review sites which even called them a scam, led myfxbook to receive lots of emails from their readers panning the broker. The concerns then caused myfxbook to cancel the contest entirely. For its part, myfxbook’s readers appear to be supportive of the move to cancel the contest, by virtue of the positive responses they received in their comments section.

The cancellation of the contest is a big win for Forex review sites and shows the increased importance of transparency in the Forex market place. What is interesting about this specific case is that CommexFx was recently rebranded to CommexFx from Prime 4X. On review sites, Prime 4X was being panned as a “scam” broker where you clients wouldn’t be able to receive withdrawals. Even after the name change, reviewers of CommexFx quickly made the connection and flagged the new company.