Published On: Mon, Dec 10th, 2012

Forex Robots are the Scammer’s Playground

If you are new to Forex trading and are planning to purchase a Forex robot then you must take care because when doing so you will be entering the world of the scammer. These individuals are normally failed forex traders who have not managed to master the complexities of this market. As such, you need to realize that many of them have just designed their robots by using their flawed Forex trading strategies. This is why such a large proportion of these products fail to live up to their market hype.

For instance, if you were to believe all the statements contained in the advertisements for Forex robots then you could conclude that their buyers should now already be very wealthy and retired. However, statistics and reality project a far more depressing picture by demonstrating that over 95% of these products fail. Even those that do register some success only do so for a limited time. A recent survey posted the following performance parameters after testing a number of popular robots:

  • Five percent of these tools did not generate profits even for their designers.
  • A further ten percent produced profits but only on certain trading platforms and then just for limited periods.
  • Seventy percent achieved profits for periods up to 3 months only.
  • Five percent managed to create profits but for the designers only.
  • Although another ten percent did achieve profits, they were so small that they were swamped by broker charges.

You can deduce after analyzing the above list that most of the inventors of these products have no real idea about what they are doing. Scammers have particular difficulty overcoming the optimization problems which are generated as a direct result of Forex constantly creating new complex price formations. Despite these serious deficiencies, scammers still plough on releasing their defected junk onto the marketplace in order to acquire as much profit as possible.

Many scammers are so deluded that they even believe that their own clients are the main reason for the failure of their products. They make statements asserting that the purchasers of the Forex robots should not expect that all their financial woes should vanish after buying a $100 Forex robot. However, it is the scammers themselves who project these very concepts in their distasteful marketing literature.

Recently, they have even resorted to asking their clients to pay for update services so that their devices can be optimized to the latest Forex trading conditions.  During recent difficult economic times, many people have been searching for ways to generate extra income by trading Forex.

Upon eventually realizing the full implications of their situation, many of them search for quick solutions instead of grappling with the complexities of this subject head-on. Those who do take the first route can quickly become prey to scammers. You must appreciate quickly that in most cases, scammers are just failed traders who are looking for ways to make their pathetic attempts at trading look worthwhile.

Consequently, if a forex tool or strategy catches your eye then you must undertake a professional analysis of its market literature by scanning for any unrealistic performance statements. For instance, you should check for bold statements such as ’our product will double your account balance every week’ or ‘do you want to know a secret that will make you super rich in no time at all’. As such claims are nearly impossible to achieve in reality, you can deduce you are dealing with a scam.

You should also look for proof of performance. For example, are you able to verify any of the product’s specification yourself before you make a purchase? If not and  instead you find yourself reading nothing more than just a long drawling sales letter, then you are well-advised to dismiss the product as another scam.

Scammers will attempt to entice you by utilizing amazing advertisements containing keys words that possess strong marketing impacts. For example, as the word ‘secret’ is a special favorite watch out for headings such as ‘the ten secrets that Forex experts have not told you’ or ‘these secrets of Forex trading will stun you’.  The only big secret that scammers possess is how they manage to generate such massive amounts of trash. If you have doubts, then do not purchase.


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About the Author

- Marcus Holland has been trading the financial markets since 2007 with a particular focus on soft commodities. He graduated in 2004 from the University of Plymouth with a BA (Hons) in Business and Finance.