Modern trading is actively evolving thanks to new technologies. Instead of analyzing the market and charts on their own, many traders use trading signals and special programs — trading robots. These tools help make decisions faster and more accurately, which is especially important for beginners and busy people.
However, with the rise in popularity of such technologies, a new type of fraud has emerged. Scammers offer paid signals and robots that actually lead to losses and deception. Let's look at how exactly dubious companies use new systems and how to protect yourself from fraud when using trading robots.
What are trading signals and trading robots
Trading signals are recommendations on when to buy or sell assets, such as stocks, currency, or cryptocurrency. They are created by experienced analysts or complex algorithms. Trading robots are special programs that automatically make trades based on predefined rules and signals. Using such robots allows minimizing the influence of emotions on trading and increasing the speed of reaction to market changes.
However, it is important to remember that trading signals and robots do not guarantee profit. Their quality and accuracy highly depend on developers and market conditions. Unfortunately, scammers have learned to use these tools to create trading scams.
How fraud with trading signals and robots manifests
Many scammers offer paid services — trading signals or access to robots with promises of high and stable profits. Often, advertising materials look very convincing — beautiful websites, testimonials from satisfied clients, detailed statistics of successful trades. However, behind this outward appeal are scam signals and robots that create false recommendations and push traders towards unprofitable trades.
Often, scammers sell subscriptions to trading signals that look successful on paper or in demo mode, but in reality, do not bring profit. There are robots that show good results in tests but make unprofitable trades with real money. Additionally, high commissions and additional charges are often hidden, significantly reducing earnings. Sometimes, after making a deposit, they restrict withdrawals or block accounts, preventing users from retrieving their money. Due to such fraudulent schemes, novice traders lose their money and trust in automated tools in general.
Main signs of scam trading signals and fraudulent robots
Scam signals and fraudulent trading robots can be identified if you know the key signs of deception. Among them are promises of guaranteed profit without risk, which is impossible in real trading. The creators of such signals and robots often hide their data or provide false information about themselves. A subscription to scam signals or robots may be expensive, with no opportunity to test the product for free or verify results.
Fraudsters often apply pressure to hasten the purchase of a subscription or increase investments, and fake reviews or their complete absence on independent platforms are a clear sign of a scam. Fraudulent trading robots often do not allow the user to control their operation — signals cannot be turned off or settings changed.
How to safely use signals and robots
Scam signals and fake robots usually do not provide transparent statistics and avoid publishing real trading results. If at least a few such signs are detected when choosing trading signals or a robot, it is worth refusing to use these services to avoid financial losses.
To minimize risks and trade safely, it is recommended:
- always check the trading signals and robots' work history, look for reviews on independent resources;
- use demo accounts to test new services without risking losing money;
- do not believe promises of easy and quick profits — trading always involves risk;
- carefully read the subscription conditions, especially regarding payment and commissions.
- use services of verified and well-known platforms with a good reputation;
- do not share login details for the trading account with anyone and monitor the security of your devices.
These recommendations help increase the level of control over your finances. Applying simple safety rules reduces the likelihood of falling into the traps of scammers. It is important to remain vigilant and not ignore warning signs that can save your funds.