In the world of forex trading, a forex robot or expert advisor (EA) is a piece of software that makes trading decisions for the traders. It can also initiate and execute trades automatically based on preprogrammed instructions. You can employ forex robots on the MetaTrader 4 or MetaTrader 5 forex trading platform. The EAs are written in MetaQuotes Language (MQL), which is a programming language. Both MQL and MetaTrader are developed by metaQuotes Software Corp. Traders can develop their own EA based on their trading parameters or use an existing EA. There are many sellers in the market that offer best forex robots to choose from.
However, you cannot trust any forex EA seller easily. The forex world is full of scams and EAs are not free from it either. If you fall into the trap of a scammer, not only your money used to purchase the robot will be wasted, but there will also be more severe consequences. Relying on the robot for making important trading decisions can lead to big trading mistakes, costing you huge losses. So, it is very important to identify and avoid forex robot scams.
How can you do that? First, you need to study and research to know the qualities of the best forex robots. You can check the reviews online, as well as view the best automated forex bots test results. It is not easy to detect a scammer, but if you go through the website of EA developers thoroughly and view the trading results on Myfxbook, there are signs that would help you. Myfxbook is a social community for forex traders where they can connect with their forex trading accounts. Be sure to check the List of Forex Brokers for US clients.
Signs Of Scams You Need To Look Out For
The seller’s website contains information about the forex EA. If it is a scam, you will find these signs on the website –
Unrealistic Marketing Messages: If you notice that the author of the forex robot has stated a lot about how the robot is a dream and how it can help you without any results to back it up, then it is obviously a scam. You must never believe in words without test results. Keep in mind that no robot can guarantee you 100% success, so, ‘too good to be true’ messages from the sellers indicate their insincerity.
Undiversified Scalping Strategies: There are some forex robots that deploy a scalping system. It means that those robots trade for very small profits. After that, it displays a high win rate to the visitors and even inflates the results in a supportive market condition. However, do not forget that the forex market is very volatile and market conditions can change any moment. When that happens, the system starts to lose more than it wins per trade and it takes only a few losing trades to wipe out any profit you had acquired.
Very High Percentage Growth Returns: Some forex robot sellers advertise that the systems are yielding huge returns like more than 4000% within just a few years. It may seem wonderful, but you need to pay attention to the statistics. The return may just be closed trades and the open trades may be at the losing end.
Unregulated Brokers: It is very suspicious if the forex robots show extremely good trading results but they use unregulated brokers. Those trades may only be good on their interbank spreads. However, opening an account with them when your spreads and commissions are wider, will result in eating too much of the profit.
Then, it is time to check the Myfxbook account. You can view the trading results on the charts. Here are the few things you need to be careful about –
Verified Results: You cannot trust the statistics if track record and trading privileges are not verified. Look at the top-right corner of the chart to see if those results are verified.
Last Update: The chart must be updated recently. It can be from a few hours to a few days. However, if it was updated months ago, there is no need to rely on the results as they do not represent real-time trading.
Private Results: if the account keeps the stats private, it can be a scam. A genuine account does not have anything to hide because its stats support the chart it displays.
These are the main factors you need to keep your eyes on to identify top forex robots scams. The best forex EAs maintain transparency on their websites and Myfxbook accounts.