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Forex EA

How to identify scammers and find the best Forex EA

 
 
Nowadays you can find Forex robots or as it is better-known Forex
EAs in almost anywhere. But what are the important factors
that you should consider before buying one?
 
 

 

 

Finding the right place to buy

One of the biggest platform is MQL5 which has an entire section dedicated to EA developers where they can showcase their products and give a brief description about how they work. You can find a lot of useful information about the seller and you can read other user's reviews. This is one of the key factor which you should consider before buying a Forex trading robot.

Reading reviews can reveal information about how the robot works and what happens in situations when the trade goes against us. It is also important to note that a platform like MQL5 have moderation and control over the reviews posted. This is essential to filter scam comments. There is no such filter or moderation on a private website where an author can post or edit any comment shown on the website. These comments can manipulate you and make you believe that it works for others without any problem.

 

Backtest vs real live test

About 99% of Forex EAs have only backtests to prove their success. Unfortunately, it can be misleading as a backtest can never be so accurate as a live test on a real trading account. A test on a demo account is better but the broker can use different spread, commission or slippage on a demo account and your commission can easily wipe out all your profit.

If you happen to find a performance test with a real live account on a reliable broker with at least 3 months of trading than you find the top 1% of EA developers.

 

Choosing the right goal

Most traders who have very little or no trading skill at all are looking for an EA which can generate at least 30-50% profit a month. They don't care about how the system works and what are the disadvantages as long as they can get the profit.

But as we know about 80% of the traders lose money with trading and only around 20% are profitable in the long run. Getting 30-50% profit a month can be very appealing and it can work for a period of time. That is why it is important to check the trading history on a verified account with at least 3 months of history.

 

Identifying scammers

There are a lot of scammers who will show you a picture of their backtests or picture of their Myfxbook accounts. But you'll never get a link to their Myfxbook account. As you know a picture can be easily edited and it is not real proof of their system.

Avoid websites which only show pictures as proof of their trading history. There is no way an actual Myfxbook account can be manipulated with a reliable broker. Of course, there are brokers who work together with scammers and easily edit their trading history.

A good place to start and find reliable brokers is on Forex Peace Army or Myfxbook Brokers Review.

 

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions. Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.