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Online scamming is nothing new. Crime is an unfortunate by-product of any industry, and unfortunately for online traders, the forex market is no different – perhaps made worse by the growth and ease of digital scams aimed at forex trading. MetaTrader 5, commonly known as the abbreviated MT5, is one of the most popular trading software used by forex brokers. Due to the nature of the software, it can be easily manipulated by digital scammers to create falsified trading platforms, automated robots, reviews and testimonials.

Fake Reviews & Testimonials

A lot of the time, new forex traders will rely on feedback to make informed decisions about everything from choosing a brokerage and setting up an account to dealing with leverage and risk management. It’s often how traders learn and develop skills that can then be shared down the line. This feed of information circulates and grows stronger, building the knowledge of the online trading community. However, this network is heavily diluted with fake information.

One trick in weeding out potential forex trading scams is picking up fake or misleading reviews. Typically, a heap of positive reviews for an unknown or unregulated broker should raise suspicions. On the other hand, scammers will also create fake negative reviews to balance the act – so it’s a bit of a difficult one. In order to avoid potential forex scams, try to verify the sources of the reviews. At the end of the day, it’s up to traders themselves to judge the legitimacy of the marketing content found online. If something doesn’t seem quite right, think twice.

The same goes for testimonials. Testimonials are usually snapshots of someone’s positive trading experience. For example, a trader online who claims to have built an account from under $100 to over $100,000 in just a couple of months via a specific broker or ‘unique method’ is likely nothing but a technique to lure in new or unwary traders. The backbone of a successful trading career involves the ability to pick out the diamonds in the ruff; there’s a lot of fake information out there.

Fixed or False Trades; Profits etc

Fixed results are one of the most obvious, yet still one of the most popular scams on MetaTrader 5. This typically involves scammers using completely fake or edited trading results in order to market what they call a ‘fool-proof’ trading strategy. This is never the case. No one can fully predict how the foreign exchange market will move, so be wary of signal sellers or online traders that claim to know the score.

Similarly, even for highly successful traders, a pure-win-based strategy is more or less a thing of myth and legend. Professional traders are more than aware that success in forex or CFD markets relies on finding and developing an individual edge, rather than blindly following the bold claims of an online ruse. So, if you’re starting out in forex and are looking to avoid one of the most common MT5 scams, stay away from fixed profits!

Fake Robots & Trading Advisors

The last but certainly not least of the most common MetaTrader 5 scams, is the use of fake automated robots and so-called ‘expert advisors’. When it comes to trading robots, it’s a bit of a difficult one. There’s an abundance of tools surrounding automation that cut out the chance of emotional intervention, meaning when used correctly, a lot of trading robots can be curated to help build a positive strategy. On the other hand, anyone can create a trading robot that works to their specifications – which can make them notoriously hard to trust. An online scammer will convince a trader to deposit money into their trading robot, but the powerful returns promised will likely not materialise into anything more than an empty account.

The expert advisor scam effectively utilises the same framework – just packaged differently. Like fake robots, scammers will convince traders to use their ‘expert advisor’. Not quite the professional help promised, these expert advisors won’t give you any advice. The whole thing is a charade. The advisor is actually software used to trade the financial markets, dressed as something completely different.

All in all, the digital frontier of forex can be dangerous for beginners, inundated with scams of all different colours and complexions. MT5 is a key target for scammers due to its consistent popularity. The bottom line is, beware of anything that seems too good to be true. It probably is.