One of the most well-known and hassle free methods to make money on the Forex market is to use an automated robot to do your trading for you. And certainly, there are a lot of Forex robots available on the market. Several are good but most are bad if not overall scams.
How can you inform them apart? That is the problem...
Here are some methods to discover if a Forex robot is a scam or not:
- Is it clear what the robot does - A few of the websites who try to take you to purchase their software are good marketers but they do not truly inform you anything concrete about the robot they are trying to sell. You have to learn the website properly. If you can not understand what this trading software does, keep clear. It is a scam.
- What does it guarantee - Lately, I came across a robot which guarantees 100% winning trades. Certainly, this is a scam. There's no foolproof trading method or tool on the face of this world. It just does not exist. Several robots do have a very high exactness rate, but if something is too close to 100% keep clear.
- Test it - Once you purchase the robot you have to test it by yourself to determine how it does. Sometimes, how the robot did previously is not how it will do in the future. Allow yourself a few weeks to test the robot out on a trial account. Don't be concerned if you have losing trades. This is a part of trading. Even so, when the program you are using is a losing program after a while, get a refund for it and don't use it again.
- Keep on testing with tiny lots - Once you are pleased with the trial tests that you have conducted, keep on testing the robot using real money. Even so, work with tiny lots. This is only a precaution to be sure that the program that you are using works properly with your broker's live account system.