Forex market is one of the largest financial markets in the world where millions of trades take place every day. It is not only for corporations or central banks to trade with one another, but individuals can also earn profits from this market. Forex market is open five days a week, all day. So, you can trade for 24 hours and take in profits.
However, foreign exchange is complicated and you cannot start earning right away after entering the market. There are many strategies that you need to learn so that you can trade to earn profits. It takes a lot of time to obtain the required knowledge and experience necessary for successful trading. So, amateur traders are at high risk of losing so much of their money before making a profit. A great solution to this problem is trading with the help of Forex EA robots.
A Forex Expert Advisor or a robot is a piece of software that can make trade entry and exit decisions automatically for traders with the inbuilt programmes. You can use a Forex robot on the MetaTrader 4 platform. These robots can perform several functions such as managing open positions, initiating trades, exiting trades, copying trades to another trading platform, generating signals for traders, and trading automatically. In traditional trading, a trader needs to take care of all these manually, so, the risks of taking wrong decisions remain. With robots, on the contrary, trade decisions are made automatically without the intervention of the trader.
There are many robots available in the market for you to choose from. With certain days of a free trial, you can purchase the one, which is most suitable for your trading style. However, you need to know that the Forex robot scam is a very common scenario. Many fraud people try to make traders buy robots that do not work at all. If you do not want to lose your money, then you must be cautious of these robot scams.
So, how do you recognise a forex robot scam? All Forex robots are not scams. To recognise them, you need to watch out for a few things, such as:
Claims Which Are Not Backed by Results
Whenever a genuine seller displays his products, he always showcases results with the claims so the customer can see for themselves how useful the robot is. A fraud, however, will only claim that his robot can do several things, but without any solid proof. So, if you see a seller offers promising features of his product but does not provide results with it for you to see, then the robot developer is for sure a fraud.
Unrealistic marketing messages
Sellers often claim lots of benefits of using their robots. However, if you pay attention, then you will know that some of the claims are too good to be true. Even if they provide trading results with them, it can be possible that the results are false as well. For example, assume a seller is claiming that his EA robot can help you earn huge profits with a tiny investment within a very short period. Now, this is absurd because as mentioned many times, it takes time to be successful in Forex trading.
High percentage growth return
Some Forex robots advertise systems with more than 1000 % return within just a few years. It may be tempting for most people, especially beginners that do not have much experience in the field but is it possible?
To know whether it is a scam, you need to pay attention to the statistics. It can be possible that the return is just on closed trades while the system still has open trades.
Use of unregulated brokers
Some Forex robots display brilliant results of trading, but they use unregulated brokers known or heard by no one. With one glance, the trader may feel that the results are great. However, if you choose to open an account with them, you will see your spread and commissions being wider. As a result, even if you earn profits, it will all be gone. So, do not go for robots that are using unregulated brokers.
Undiversified scalping strategies
A scalping system is employed by many Forex robots. It represents the fact that these robots trade for very small profits. However, the results are inflated in a market condition that supports the results and then they are displayed with a high win rate. With market conditions changing continuously, the system may suffer from more losses before earning profits. So, you will end up losing all money after only a few trades. So, be cautious of the undiversified scalping strategies.
Scams on Myfxbook account
Myfxbook is the social community where Forex traders can connect with their Forex trading account. By doing this, they can analyse their trading system, as well as the account with Myfxbook’s advanced statistical analysis. You can also view and observe the trading accounts of Forex robots on Myfxbook. It is one of the best ways to identify scams.
By visiting the trading page of a Myfxbook account, you can see a chart with the statistics containing all information including deposits, withdrawals, balance, equity, gain, drawdown, profit, last update and more.
You can check the authenticity of the account by checking a few things, such as:
- First, look at the top of the chart and check if the tracking record and tracking privileges are verified. If not, then the account may be a scam.
- Next, check when the chart was last updated. If it was updated within a few hours or a few days for the last time, then it is fine. However, if it has not been updated in months, then the results are not of the present trades. So, there is no reason to trust the chart.
- Finally, see if all the stats are exposed or hidden. If most of them are private, then it indicates that the chart is not trustworthy as the results may not match with it, thus hidden. These kinds of robots have high chances to be a scam.
Forex robots are useful, but they are also expensive.
So, before you give your money to a seller, make sure to check thoroughly so you can avoid scams.