Can MT4 Trades Be Faked?
Accessing the global Forex market has never been easier. With one click you can trade Euros, British Pounds, Japanese Yen, US Dollars, and even Russian Rubles. Unfortunately, as with any positive thing comes some drawbacks.
Many unscrupulous actors try to take advantage of unsuspecting traders through the window that computerized forex trading has provided.
Although Forex fraud has existed as long as the forex market has existed the rate of scams, hacks, and faked MT4 trades is at an all-time high.
As the system is evolving, scammers are also looking for more ways to steal from unsuspecting traders through diverse criminal means.
Recently, some traders have reported falling victim to faked MT4 trades. These frauds are orchestrated such that no matter if the trader buys or sells an asset, it will end in a pre-programmed way, such as a broker.
This leads to some important questions, is it possible to fake MT4 trades, and if it is possible, how is this fraud being carried out?
SEE ALSO: How to Flee these 10 Bitcoin Scams Now!
Fake Signal Providers
These unscrupulous elements usually start as a Forex signal service giving buy and sell signals to traders to trade at a particularly defined time. It is done such that the trade results are adjusted from the broker’s backend.
Dubious Fund Managers
These fund managers create fake live data from previously used data such that the trading result is known to them beforehand whilst making unsuspecting traders think they are live trades. They may also manipulate the live data of traders through their backend.
Why Fake an MT4 Trade?
- To increase trading volume, when trading volume is high, the fees charged by brokers tend to be higher, therefore, they try to illegally increase their profits by taking more fees from inflated trading volumes.
- To manipulate traders’ accounts.
- To manipulate the price of an asset.
- To scam unsuspecting victims of their equity entirely.
Fake MT4 Trades
While live charts cannot be manipulated as chart data is relatively the same at any time for all brokers.
On the other hand, trades can be manipulated from the backend of a fraudulent broker. Most times, this is rare because brokers are regulated from various jurisdictions.
How Not To Fall For Fake MT4 Trades
Do your Research
If you want to start trading or you want to invest with a fund manager/Hedge fund, it is very important to do your research on them.
A rule of thumb is to visit their website and check their terms of service and mode of operation, it is also important to look for their social media handles.
Oftentimes, there are a lot of reviews from people who have used their service before. Of course, this is not to say that these cannot be gamed as some even go as far as paying for fake reviews.
You can also do a simple search engine search of the entity and see independent reviews.
Finally look for Brokers who have a track record, preferably those that have been in business for about five years or more.
Look here for our list of top brokers.
Beware Of Unsolicited Propositions
You should be wary of callers, emails from fund managers, or brokers that you have not subscribed to, or done business with in the past, who are inviting you to invest in a hedge fund or start trading with a broker you are not familiar with.
Are They Regulated?
There are some regulators for brokers and investment firms. Find out if your broker is licensed by looking for the Retail Foreign Exchange Dealer Number (RFED).
You can also check if they are a member of the Securities Investor Protection Corporation (SIPC), an organization that ensures investors up to about $500,000 if a broker fails or defaults with investor funds.
You can check if your broker is legit on the Finra website.
Withdraw Your Funds
As simple as this sounds, this may be your saving grace from fake MT4 trades, after making an initial profit, try and place a withdrawal, often scammers prevent depositors from withdrawing or charge outrageous withdrawal fees to withdraw your funds.
Trades can rarely be faked or manipulated, but you always need to double-check trade results that look too good to be true. The bottom line is to stick with legit Forex brokers and query trades, activities, or results that look suspicious.
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