Forex trading has become increasingly popular over the years as more and more people seek to make money from the financial markets. With the rise of technology and the internet, Forex trading has become more accessible to people all over the world. However, with the increase in popularity, there has also been a rise in Forex automation scams.
It’s common for people to fall prey to individuals who make false promises or offer unrealistic results. This article aims to inform you about what to be cautious of and vigilant about. It would be unfortunate to have your high hopes shattered by someone with bad intentions. So, let’s take a look at the two most prevalent trading-related scams that you might encounter online.
Forex Automation Scams
Forex automation scams are fraudulent schemes that claim to help traders automate their Forex trading and make it easy to make a profit with minimal effort. These scams often involve the sale of automated trading systems (EAs) or robots that are supposed to use advanced algorithms and artificial intelligence to identify profitable trades and execute them on behalf of the user.
The promise of easy money with little to no effort is undoubtedly tempting, but the reality is that Forex trading requires knowledge, experience, and discipline. There are no shortcuts to success, and any system or robot that promises to generate consistent profits without any work on your part is almost certainly a scam.
Here Is How it Often Happens
In a typical automation scam, you’ll receive a private message from someone claiming to be an excellent trader. They promise to take care of the entire evaluation process for your FTMO challenge and guarantee huge profits without you having to lift a finger. They’ll bombard you with images of substantial profits, countless withdrawals, and other things to support their lies.
This service will cost you hundreds of dollars (depending on the account contract’s size), plus the fee for the prop firm challenge. This is your initial investment, and the provider will take a cut from the profit split for the monthly payout. Sounds too good to be true, right?
These services always follow the same pattern, and within a few days, you’ll notice a rule violation in your account. The provider will stop communicating with you, block you on social media, and walk away with your hard-earned money. Instead of the promised profits from your prop firm account, you’ll end up losing your investment, and the scammer will have made a fortune.
Other Forex Automation Scams
In many cases, these scams involve the sale of fake trading signals or software that is designed to manipulate the market to generate profits for the scammer. These signals may look legitimate and provide a convincing sales pitch, but they are often based on faulty or non-existent trading strategies.
Traders who fall for these scams often end up losing their entire investment, as the automated system fails to generate any returns and the scammer disappears with their money. Unfortunately, this happens all too often, and many traders have been left disappointed and out of pocket as a result.
To avoid falling victim to Forex automation scams, it is essential to be wary of any system or robot that promises easy profits with no effort or skill required. Always conduct thorough research and due diligence before investing in any trading system or service.
Protect Yourself from Forex Automation Scams
One way to verify the legitimacy of a trading system or robot is to look for independent reviews and feedback from other traders. Do your own research and don’t rely solely on the information provided by the seller of the system.
Forex automation scams are a real threat to traders, and it’s essential to be cautious when considering any system or robot that promises easy money. Remember, there are no shortcuts to success, and any legitimate trading system or robot will require knowledge, experience, and discipline on your part. Stay informed, do your research, and always be wary of any get-rich-quick schemes.
Courses and EAs Ready to Meet a Prop Firm Challenge
Firstly, I want to stress that there are no guarantees or one unique way of trading! Every trader has their approach to trading, with mixed feelings for the market, different perceptions of risk, diverse psychological settings, etc. There is no shortcut that will make you a millionaire in a few days. Many things need to be learned and tried properly to achieve success in trading.
If someone teaches you their strategy and you find out that the trading system will suit you in all directions, you will still not achieve the same results as your teacher. Each trader evaluates each situation a little differently, and that is why the work cannot be the same. This does not mean that all mentors do their job poorly. Certainly not, but if someone tells you that their course is precisely tailored to pass your challenge and promises a 100% success rate, be very careful!
EAs and Bots
Even worse are automatic strategies (EA) that promise such results. In this case, the possibility of a positive influence on your trading is almost zero. If we consider the current market conditions, where unexpected things happen more often than usual, it is almost impossible for someone to program algorithms that won’t make mistakes.
Conclusion
In conclusion, I want to emphasize that there are no shortcuts in trading that will make you rich overnight. One of the most beautiful things about trading is the freedom and responsibility that comes with it. If you make a mistake while trading, you know it’s your fault, and you can work on it. Once you eliminate a mistake, you don’t have to make it for the rest of your life.
If you transfer responsibility to someone else, you can’t work on your mistakes and grow as a trader. Therefore, don’t fall for the false promises of courses or robots that claim to guarantee your success in the FTMO (or any other) Challenge. Take your time to learn and grow as a trader, and success will come with time and effort.
Check out this article here on the limitations of EAs: Are Expert Advisors Guaranteed to Pass Your FTMO Challenge?
