MetaTrader 5 is not a new forex platform. Successful traders have gotten the inside secrets of this software. Unfortunately, most speculators are afraid to use this tool.
Trading online includes high risk. So, people invest in MT5 carefully. They have to face some scams. In the world of Forex scamming, you have to own your losses.
Everyone wants to know: Can I trade on MT5 safely? Should I understand the upcoming frauds before getting started? How does a broker scam you on MT5? You can get all these questions in this article; here, you will learn everything about this topic.
Let’s start with the significant confusion of FX traders: Can I get scammed on MT5?
Yes, you can get scammed on fraudulent trading systems that run on hijacked editions of the Metaquotes network. Don’t worry; by understanding the tricks of scammers before opening your account, you can trade with MetaTrader5. You have to open your account with some legal and reputable brokerage.
Metatrader5 has many charts and analytical techniques for expert investors. You can earn money on this platform by using the perfect strategy with a credible broker.
Keep reading to sort out the well-known scams on Mt5:
What Is MT5
MT5 is software used to trade equities, futures, and stocks. Its charts and analysis tools make it superior for professionals. After the super results of MT4, Metaquotes introduced MT5 in 2010 for perfect traders. It has a similar logo, with a variety of trading systems.
Modern Scamming in Forex Marketing
Whenever someone(a broker or a middleman) promises to get great money from the forex marketplace, you should understand their tactic to trap you. You can call it a modern scam of the FX marketplace. Novice traders fail to trade for such a significant fraud.
Forex trading road is not a one-way to success. Many fraudsters are on the way to misguide you. Today, currency trade has become a trending business. So, it is vital to understand the mystery of such scammers. To avoid such scams, traders should never jump into the market without getting proper training.
Today, many illegal brokers are manipulating investors for their business. Government authorities license registered brokers. You can avoid forex fraud by checking the credibility of your brokerage. Reliable mentors follow the rules and regulations.
What Are the Criteria for MT5 Fraud
Follow these factors to pick a safe online MT5 trading brokerage system:
- Check the previous record of 2 years of your MT5 trading portal provider.
- Confirm that your MT5 system broker has 15 members of customer service staff.
- Would the Secure MT5 Trading Networks dealer belong to the purview of a regulatory authority that has the authority to hold a broker answerable for its claims,
- Test your Secure The MT5 Trading Services broker can process the withdrawals and deposits within 2 – 3 days. When taking money out, be aware of this.
- Has your Safe MT5 broker a worldwide reach across many regions? It includes training and topical workshop sessions.
- Keep in mind your Safe MT5 Investment Platforms can engage people from other nations who are more familiar with your native tongue.
How Brokers Can Scam You: 4Popular Tactics
Being a scam prevention guide of FXCM, we have some guidelines to help you avoid getting scammed on MT5. Surely, you can remove your fears of being a victim of this tool.
Here are tactics of brokers to scam you on MT5:
1. Inviting clients with the MT5 brand
The latest edition of MT5 is already officially marketed in Taiwan. Most fraudsters are entering the illegal forex market. They are running scams using the label MT5. For instance, a customer support agent on Connection may offer you to register onMT5.
Then they recommend you start with those criminal FX dealers. Such a guy may have the profile and username “Meta trade 5”. But, it needs a licensed broker system to enroll. MT5’s advertising program is not for regular clients.
Do not believe anyone who contacts you on behalf of the MT5 helpdesk.
2. Unrealistic EA algorithmic trading bonuses
An essential feature of the MT5 software series is EA. The software package combines the entrepreneur’s analysis, choice, and statistical activities. Once the essential criteria are accessed, orders are easy to place.
At that time, Forex EAs is more responsive to movement fluctuations and prices. This way, it can value trends movements and pricing.
Even so, several criminal brokers overestimate the gains of MT5/MT4 auto trading. Primarily, they practice it while generating exceedingly low and valuable frauds to ensure greater. As a result, many users of EA auto trading endure false reports, sale roles, or, indeed blown their deposits.
3. Don’t Allow to Withdraw Cash from MT5: IF You Want
Typically, users of the basic Ponzi tactic, (which requires regularly taking additional money to pay back investors’ rewards) try this way.
To scam clients, certain corrupt brokers of MT5 while, signing a “tenancy agreement” with Meta trade and declined to withdraw money if buyers ask for it. At that time, they also violate their commitments to MT5, but they don’t care.
Keep in mind that, MT5/MT4 is only a trading gateway. So traders should check the brokers to register you upon precise withdrawal terms and regulations. But it is not for depositing cash from your investment to MT5/MT4. Although many brokers have a strict process of withdrawal, It is also easy to withdraw money after understanding the inside secrets of brokers.
Now it is clear that you should say goodbye to such brokers that don’t let you withdraw your money. No doubt, they are the 100% scammers on MT5.
4. Designing Fake MT5/MT4 Systems
Today, several fraudsters design their terroristic copies of MT5 due to MT5/M4s API access. As pirated copies of MT5/MT4 are fully within the creator’s hands, the actual quotations and margins will differ from the actual ones if you are unfortunate to own one.
However, they are not much different from the usual to grab your interest. Developing a slight change might cost traders a significant amount of money.
Still, the hacked MT5/MT4 contains issues of regular shutdowns and unpredictable trades. Similarly, a fault keeps you from fixing a stop loss line, causes the transaction to fail, or stops you from ending a position. As a result, you can drain your investment.
How to Know About the Credibility of a Brokerage Firm
There are 6 steps to consider the credibility of brokerage:
1. Confirm the URL and enrollment address of the chosen site
You can approach the data on the site’s technical prefixes. Such bogus platforms have published URLs that don’t relate to their real web resources.
However, they claim to have been working in the foreign currency market for many years. For example, if the 2 are reliable, the fake portal won’t have been certified for longer, that is definitely the main fault.
2. Check The Rules and Scopes of Regulatory Authorities
You should know the credible foreign exchange agencies regulating brokerage firms. The most trusted among them are listed here:
- British Financial Conduct Authority FCA,
- Australian Securities and Investment Commission ASIC
- Swiss Financial Market Supervision Authority FINMA
- National Futures Association NFA
- Australian Securities and Investment Commission ASIC
- Cyprus Securities and Exchange Commission
BOGUS forex companies and brokerage agencies have no rules and regulations. In fact, they are not working under some reputable authority.
In case, some official authority is controlling it; then you have to check if this agency scop has a foreign exchange or not. Without these criteria, your brokerages and systems are not trust trusted
3. Check the permit from the regulatory agency
Keep in mind that your legal MT5 doesn’t confirm the reliability of your brokerage company because your MetaTrader is not responsible to check the buyers’ registration.
Many scammer agencies show a fake certificate of some regulatory authority. But you can see that their data is quite different from that regulatory firm.
For example, they can use the license of some non-regular firm like the FSP(New Zealand ) license. Actually, FMA is the legal official body of New Zealand.
If beginners are unaware of authentic regulatory bodies of foreign exchange, they can easily become the victim of such brokerage firms. So, before getting started, investors should verify the information of regulatory agencies of their required foreign country.
4. Knowing the “Narrative” of the company and its staff
Several legitimate enterprises run fake portals and brokers. They may advertise themselves as a department or local branch of a reputable firm with legal governance. They even don’t know the basic information about the rules and regulations.
They have no idea to put the data of their so-called employees. As a result, once you locate the site and broker companies, you shouldn’t ignore the corporate information of that platform. It is an easy way to identify a possible scam.
5. Examine the data and features of required Foreign Exchange
Usually, scammers have no more extended plans for the business. Which makes it easy for users to recognize them. For example, you can check their given information on your own.
Moreover, you can make a comparison between different systems and brokers. However, it would be best if you avoided brokerages with obviously poor web design and serious data faults. You should need to take precautions.
6. Avoid the platform and brokerage offers
Countless criminal sites and brokerages use their typical cheap tricks to get clients into the field. They do it by promising huge returns, risk-free investing, and steady gains with no loss. Unfortunately, buyers are continually falling for such obvious ancient techniques.
You should be clear about the ups and downs of any type of business, like equities or cryptos. In this game, sometimes you make profits, but you may get a significant loss next time. Trust the brokers that are claiming to make one-sided profits.
They promise to earn regular revenue for you without any risk, they are heaters. Be aware, that investment is not one way of getting profits. Indeed, they are looking for risk takers to play with their money.
What to Do After Getting Scammed On MT5
Unluckily, if somebody gets scammed on MT5, he should follow these guidelines to decrease such losses:
1. Hold your temper:
Because you are aware of the MT5 fraud, think of the upcoming victims of these fraudulent brokerages. Take action, expose these scammers on their supporter’s group, Facebook, and publish a post about their scamming tactics on social media.
2. Submit a complaint immediately:
Law enforcement agencies will take action against the culprits. In Taiwan, the police are very active in finding these fake MT5 scammers and have settled offices in their country.
3. Taiwanese special
You can see records of swindlers and misleading plans on the official website of the Cabinet of the Home Police Dept. You can access the information of 165 scamming sites by visiting their site.
FAQs
Is MT5 reliable?
Yet, because it needs a good broker company to register, MT5’s advertising program is not available for regular clients. Therefore, don’t believe anyone who approaches you on behalf of MT5 customer support.
Is MetaTrader 5 actual cash?
On these platforms, trades are made by using real cash. So, you must give the broker complete personal data along with identity and verification of citizenship. After checking your details, the broker will inform you to fulfill the online application to open your account.
Which are the best Brokers for MT5 in 2022?
The top Brokers for MT5 in 2022 are: BDSwiss (Cheapest Margin MT5 Broker)
HFM (The ideal ECN MT5 Broker), FP Markets (Highest Performance MT5 Broker), Pepperstone(Strongest for EA Trading and scalping MT5 Broker).
Final Verdict
Finally, investors should keep a deep look to understand the inside game of scammers. To avoid the scams on MT5, traders should peel their eyes and choose a legal and reputable foreign exchange brokerage firm.
By knowing the tactics of fraudsters, you can avoid getting trapped on MT5.
Remember, only a legitimate broker can track your trade under some fundamental official authorities. For all who think they can get scammed on MT5, please follow the guidelines in the above post to avoid it.