A forex bot, also known as an expert advisor or EA, is a software program that executes trading decisions for traders in currency trading. A considerable number of traders now prefer FX bots since they make it possible for automatic currency trading, which again is necessary when trading in a marketplace that is accessible 24 hours a day. However, when you pick an FX robot and choose to rely on it, focus on conducting thorough research and go through the best forex robots reviews in order to make sure it is not a scam.
Forex scammers entrap investors in a number of different ways, including phone scams, emails, and advertisements. All of such strategies promote enticing investment ideas that offer huge returns in a short amount of time with minimum effort. Such scammers are nearly always incredibly persistent and confrontational, irrespective of the approach they adopt.
- Scams via phone calls
In most cases, a Forex phone scammer will try to get your attention right away. The scammer will either give a chance to spend almost nothing and obtain exaggerated gains, or they will pitch themselves as a skilled trading expert representing a Brokerage in such scams.
- Scams via mails and messaging
Email, SMS, and Messages from fraudulent brokerage are becoming increasingly popular, similarly to Forex call scams that claim similar guarantees.
- Scams via advertising link
This type of currency fraud may be discovered on websites or social media channels. They are usually followed with images of well-known business and media personalities who have rarely given their permission for their image to be used. These photos are chosen because they inadvertently pique the viewer’s interest, causing them to click to learn more.
Signs to look out for to identify FX scams
- Unclear details about the robot
On the site of a reputable forex bot, there should always be extensive data. You’ll be able to learn about the trading method it employs, as well as the technical indicators it uses. Many websites, on the other hand, do not provide any product details. It’s not a wise investment to make in a forex robot before you know what you’re receiving, because it might not be suitable for your trading style. In addition, the lack of information may suggest fraud.
- Brokerage those lack any evidence of its authenticity
Checking whether or not a service is recognized with a regulatory authority is one of the most effective ways to easily determine whether or not it is genuine. A legitimate business will always show proof of authorization. If FX bots generate excellent trading returns yet utilise unregistered brokers, this is particularly suspicious. Those deals could only be profitable because of their interbank spreads. Setting up an account with them while your spreads and commissions are higher, on the other hand, will take up much more of your earnings.
- Promotes claims that are unrealistic
It is not feasible to say that an FX bot has drastically increased the capital in a relatively short period of time, such as a year, no matter how reliable and robust it is in increasing profitability under any market scenario. The market is turbulent, and whenever FX bots are initially developed, they must be updated several times in order to perform in unusual market situations. Therefore, don’t be misled by these assertions since they are almost certainly false.
- Lack of results from backtesting
Backtesting results should back up everything an FX robot developer states on their website. If you don’t notice such data on the site, you won’t be able to check the robot’s efficiency claims. As a result, it is impossible to trust the FX robot. If backtesting data are available, thoroughly examine them and gain a complete understanding of the robot’s capabilities before purchasing it.
- Keeping results hidden
It might be a hoax if the account keeps the statistics private. A real account has nothing to hide since its statistics back up the chart it provides.
- Stats are not updated recently
The chart should have been updated lately. If it was updated months earlier, however, there is no need to consider the results because they do not reflect real-time trading.
These are the most important things to look for while looking for top FX robots frauds. You may check their sites and on individual MyFXbook accounts as the leading FX EAs always preserve transparency.