As online trading started gaining popularity, many platforms began introducing automated trading systems, neat features that enable users to set up a strategy that the computer will execute. Hence, traders do not have to monitor the platform all the time.
These tools are time-saving and efficient, catching the attention of many newbies who want to make profits without investing too much effort into learning the craft. However, not all of the automated systems are transparent. There are countless fake trading systems online.
In this article, we explore how scammers use these systems as a ruse to lure unwary individuals and get a hold of their money. Learn how to distinguish between genuine and fake trading systems, how to detect if your broker is offering real AI trading, and how to act if you’re a victim.
What Are Automated Trading Systems?
An automated trading system, commonly referred to as algorithmic trading software, is a program that executes trades based on certain inputs. These systems can be used to trade popular assets such as stocks, cryptocurrencies, or Forex.
The main idea behind auto trading software is to facilitate the activity for the human trader given its ability to operate 24/5 without constant monitoring. According to Reuters, these systems overtook the market as up to 70% of stock trading came from algorithms in 2019, up by 100% compared to 20 years ago.
Having a leading player such as J.P. Morgan relying on algo trading goes to show how effective these systems really are, which is precisely why con artists see it as a perfect ruse to run their schemes.
How to run AI trading platforms?
Automated trading strategies can be based on elementary conditions like a moving average crossover or complex systems that require the expertise of a skilled programmer who understands deep coding.
To successfully implement these systems, you will need software connected to a direct access broker. The rules are written in the platform’s language.
For example, TradeStation uses EasyLanguage, whereas NinjaTrader relies on NinjaScript. Renowned platforms such as MetaTrader 4 and MetaTrader 5 also boast neat automated trading systems, allowing users to develop, test, and apply Expert Advisors (EAs) and technical indicators, thus eliminating trading obstacles.
Genuine vs. Fake Trading Systems
A legitimate automated trading platform comes from a well-known company and supports proven trading strategies. These systems must provide swift customer support as well as risk management tools to help traders who are just starting out.
In the opposite corner, we have fraudulent systems designed to lure unsuspecting traders with promises of high profits overnight. A fake trading platform is usually backed by fake testimonials and misleading ads. They often promise an infallible Forex robot trading bot that’s going to make you rich in no time.
The scammers’ goal is to get the trader to deposit money into their live account so that they can steal it and vanish or manipulate the orders and positions to make the trader lose money, leading them to believe that it was their fault.
How to Know If My Broker Offers a Real AI Trading System
Determining whether your broker offers a genuine AI trading system often depends on the legitimacy of the provider. If you get a platform from a respectable trading firm, you can trade soundly knowing your funds are secured. Here are some guidelines for finding out who you are dealing with:
- Regulatory status – Legitimate brokerage firms must obtain a trading license from their respective financial regulator. To do so, they must meet certain criteria such as maintaining a significant operating capital and segregating clients’ funds in top banks.
- Transparency – An honest trading system will always disclose the efficiency of its performance and trading strategies, not shying away from a lower success rate. It’s important to outline the risk as well.
- Customer support – Adequate and timely customer support is what you should look for, especially if you’re a beginner, as these systems may sometimes be confusing. If you don’t get feedback from your provider, you are probably dealing with a fraudster.
- User reviews – Feedback from traders will give you a clear picture of how a system works, but be careful since there are fake reviews out there. Note that no system is perfect.
What to Do If I Get Scammed by a Fake Trading System?
Upon noticing any red flags, immediately contact your broker and report all issues. In case you do not get a clear response, you should resort to reporting the provider to regulatory authorities and law enforcement and prevent the scheme from claiming more victims.
Getting your funds out can be challenging, which is why you should not go through it alone. Get in touch with a chargeback company and seek aid. Over here at Scam Brokers Reviews, we have a team of professionals who handle chargeback cases daily. Book a consultation with us and tell us how you got deceived.
Conclusion
To wrap up, we shall outline the main points we’ve made in our article. Automated trading systems are useful tools for traders, enabling them to run pre-programmed strategies without having to oversee their platforms all the time.
Due to its convenient nature, scammers saw the opportunity to abuse these systems and defraud users. Therefore, it is imperative to be on the watch for fake trading systems that promise unrealistic profits with minimal risk and effort.
Follow the guidelines we have provided and steer clear of suspicious AI trading platforms. In case you have fallen prey to an unscrupulous cyber thief, contact us via web form and explain how it happened. We can surely assist in the fund recovery process.
FAQ Section
What are automated trading systems?
Automated trading systems are computer programs that execute trades based on pre-determined strategies, entry & exit points, etc.
How to spot fake systems?
Look for red flags such as the absence of a trading license, lack of transparency, poor customer support, and fake testimonials.
How to get your money back?
Consider requesting a chargeback at your issuing bank or employing crypto tracking teams. Contact Scam Brokers Reviews for professional assistance.
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