When it comes to investing, there are endless ways to scam a trader. Many brokers manage to get away with their fraudulent activities for a period of time.
Broker scams come and go. Some move underground only to pop up again at a later date. Scams must be done in a clever, convincing manner. They must also be convenient for the trader. The easier it is for the trader to seemingly make money, the more a fraud will succeed. The latest entry into the Forex scam market is the Forex robot, which is a perfect example of promises of easy money.
Forex Robots are all about making money while you sleep which makes them a prime area for fraudulent activity. Forex robot scams are only now beginning to be uncovered but not everyone concurs that Forex robots are scams to begin with. Thankfully, there are more and more websites rating Forex traders and their systems. You can make more educated decisions after reading reviews and checking with experienced Forex experts. At the very least, one should search for reviews before purchasing a Forex robot, no matter what claims are made about its success.
Traders can sleep through the night calmly knowing that their trades will be placed exactly at the times they designated. Forex robots are getting a lot of hype of late and Forex robot scams are not far behind. Almost every Forex broker currently offers its account holders the opportunity to use a Forex robot for their trades. They back up the legitimacy of these robots with tremendous profits and lull the trader into a false sense of security only to end up broke. These claims are usually based on a very narrow window where the particular product was successful and not on a long term use of the Forex robot.
A Forex robot can only be as smart as its creator. The creators of these systems are looking to make a quick large sum of money and are not looking at the fact that the most predictable thing about the Forex market is the changes you cannot predict without watching the changes carefully.
Anyone who knows the Forex market well and understands it will recommend a live person with their own trading strategy and then and only then does it make sense to automate any of it. The companies producing Forex robots often rely on very broad, small print disclaimers to keep them out of trouble for promising tremendous results when those results are unrealistic in the long term. The problem is that Forex robots are run based on automated mathematical algorithms, not taking into account things like market conditions that vary with political issues, weather and other factors.
The inconsistency of the market is impossible to program into a robot, and therefore the results of Forex robots are inconsistent as well. Most Forex robot scams are easy to pinpoint and would seem obvious to any investor.
Even those brokers that are successful exaggerate their numbers to attract new clients. This is what leads so easily to Forex robot scams. When you look at any two weeks of trading in the past that were profitable, and then make a profit claim based on those weeks, you are not lying to anyone. Be very wary of hindsight claims in simulated conditions. If the Forex vendor is genuine, then he should advise his traders NOT to use an EA until they fully understand what the robot is all about.
Getting a refund for the Forex robot sometimes will satisfy the customer but they have already lost in the market and wish they had never gotten involved with it in the first place. Forex traders who have used robots in the past suggest that traders learn enough about the workings of the EA program so that they can place the trades themselves and not through a broker.
This will provide them with a sense that they are in control of their money and are not leaving it in the hands of a broker. This may not lead to profits but it will eliminate the feeling of being taken in by a fraudulent Forex robot scam.
Generally, nothing that promises tremendous gains with very minimal investment will prove to be successful. Any experienced Forex trader will tell you that it takes real understanding, and changes based on that understanding to be successful in the Forex market and for that you need a human involved in the decision making process. A carefully chosen Forex robot, monitored by an educated Forex trader can help to automate the trading and reduce time spent which saves money in the long run.
If you and your Forex trader do the research then Forex Robots can be a positive thing. Beware of any arrangement that does not involve careful research by experts and remember that it is not only the cost of the Forex robot at stake; your trading capital is as well.
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Want to get in-depth lessons and instructional videos from Forex trading experts? Register for free at FX Academy, the first online interactive trading academy that offers courses on Technical Analysis, Trading Basics, Risk Management and more prepared exclusively by professional Forex traders. Report Broker Scams Forex Widgets. Vader Forex Robot One practical example of a Forex robot is the Vader Forex robot, which is a product created by a Forex-based technology company.
This particular Forex robot has performed well, is customer friendly and incorporates Fibonacci levels to help predict the trends. Some traders consider the accuracy by which Fibonacci retracements can predict future rates very significant and this Forex robot uses these levels as entry and exit thresholds for automated Forex trading. The people using this Forex robot believe this is a strong strategy and can predict results with reasonable success. Some reviews suggest that it can perform more successfully if used by someone who does some of the monitoring himself rather than relying completely on the automated decisions.
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