I have wasted a lot of time on this in the past and I hope that you can benefit from my experience. On the surface, sites like Myfxbook seem like the best way for newbies to tell which signal providers, educators or robots are the best.
However, when you look at the “Strategy” section of the website, you will find lots of fantastic results. Most of them seem too good to be true.
You think to yourself…is that for real? Some of the results really are amazing. Are they faked?
There are also various sites specialize in Forex trader reviews. Most of these sites talk about traders in their forums. These sites can also show equally fantastic results.
So what should you believe?
While you can never be 100% sure that all results are true, there are certainly a few ways that you can uncover legitimate traders, with a high degree of certainty.
In this post, we will take a closer look at how to spot fake Forex trading results.
First, let’s take a look at the accounts on MyFxBook. There are some accounts that look like this.
The returns are amazing and it seems too good to be true. So what should you look for?
First, find out if the results are verified. The track record has to be verified and there must be a green check next to it.
Here is an example of an unverified account. The trading privileges do not need to be verified on MyFxBook.
Another thing that you should look at is the length of the track record. Obviously, they don’t have to have a 10 year record, but the longer, the better.
Many fake accounts will only have a track record of a few months.
Of course, past performance does not guarantee future results. But it does help you understand what you are getting into.
Look at the Website
Next, take a look at the trader or developer website, if they have one. If the site looks bad or there are a lot of misspellings on the site, that is not a good sign.
There are certain features of a website that can tip you off. Some sites end up using a free Blogger blog. Do you still want to give your hard-earned cash to a trader that can’t afford $5 per month to host their own site?
There are some cases when a legit trader has a bad website. But if it is obvious that they have not put the time and effort to create a real website, then they are probably equally undisciplined about their trading or they are making up their results.
Sometimes, the links on a site can be affiliate links. The reviewer, in this case, gets paid for referring a client to an agent. This is legitimate, but beware.
If it is obvious that a site is only in it for the commissions, you have to ask yourself if they really believe in the trader, or if they are just trying to make a quick buck. Are they actually using the service?
Some sites are blatant scams and might keep you wondering why anyone would fall for it. But people do. Scam sites can use videos in their marketing and they can be very convincing.
One deception is built around the idea of the language barrier between countries. They think they can pull off a “lost in translation” on their clients.
This usually centers around using video footage in one language and subtitles in the target language. Sometimes that video isn’t even trading related.
However, the video looks official and many times, comes from a news cast or a similarly semi-credible source. Here is an example from the Adrian Shiroma scam.
If you just watch the video for a few minutes, you will see that it is a scam. In this video, she never actually says “Adrian Shiroma,” even though it is in the subtitles.
Search the Web for Negative Reviews
You should be able to take a keen look at the brokers that a trader is using. Some of these traders may make things to be legit. A standard check I prefer is to search for the name of the broker with the word “sucks” if you Google the brokers review, for example, and finds nothing, not even a negative review, it should give you enough sign that the broker is fake.
Obtaining results for the search doesn’t have to mean that the broker is bad. Even the best in the game will have negative reviews.
The sad fact about trading is that there will always be haters. Most people are not successful traders and they want to blame anything and everything else, besides themselves.
But sites like Forex Peace Army, can give you a good idea of if a trader or educator is worth investing in.
Incomplete Sign-Up Process
If you try to sign up for a service, are you able to get to the end or does it send you to some weird page or give you an error? Sure, there can be momentary technical outages, but if you have these issues all the time, this can be a giant red flag.
A real broker should be able to get you started with a live account and a trading platform. A lot of fake trading sites will not give you the opportunity to download the broker’s proprietary platform.
It can be really easy to get excited about the Forex market. For people who don’t want to trade, having a trader do it for you can be very attractive. But there are a lot of risks involved with finding a solid trader.
To get started with our verified Forex signals and managed accounts, check out this page.
I hope you’ve learned a few things from this post. It should help you to spot a scam in the future.