Is Metatrader5 a scam? Meta trader 5 is a highly well-known platform for forex trading. It is trusted and broadly used by many forex traders because of its security level. But still, people report that they have been scammed on this platform and lost their investment. However, the platform itself is not a scam, as there is nothing false about the MT5. If a person loses money on the MT5 apart from the price variation, then it means they are dealing with scammers. These fake brokers are the ones running the MT5 scam. This article will tell you everything about MT5 scams and how to avoid becoming a victim.
However, Metatrader is the largest platform for trading, and forex trading usually happens on this platform. That’s why it becomes an easy target of imposters; they just have to pose like a professional brokers to defraud innocent people. Initially, people earn some money successfully, but when they invest a huge amount, they start losing and cannot even take out their own money from their accounts.
However, the Metatrader app was suspended by apple after lots of scam reports. Many people have suffered losses from these scammers, and they easily fade away. So it’s pretty necessary to protect yourself from such scams by researching before investing.
About MetaTrader5
Metatrader 5 is the newest software introduced by the Russian-based company MetaQuotes for trading on the financial markets. It comes with lots of features & tools, such as trading tools, charting tools, and other valuable features that simplify trading.
However, it is an old platform, but still one of the well-known trading platforms for forex and CFD trading. As in every kind of investing, there is a risk of getting fooled by scammers. MT5 platforms have also been used by some scammers to control innocent people.
Although MetaQuotes hold the authority to sell the MT5 license to any business, the company is not accountable if any manipulation or misuse happens. That’s where the Metatrader5 scams come in because criminals start to use this software to scam investors. Read on further to know some common brokers’ tactics and how they scam people.
Some Common Fraud Ways of MetaTrader5 Brokers
Imposters need to build trust with the target before beginning the scamming process. Using a popular trading platform such as MT5 or MT4 lets such con artists brand themselves as authentic brokers. So, being a little careless while choosing a broker may lead you to fall for the scam. Here are some common fraud tactics that MT5 brokers use:
1. Enticing People under the Name of MT5
Many scammers are conducting fake promotions under the name of the MT5 platform to lure customers. You may come across a customer provider agent with the avatar and username “Metatrade 5” requesting you to open an account with MT5 and suggesting trading with those fake forex traders.
However, in reality, the Metatrader5 endorsement service is not for general people, as it needs a legitimate brokerage platform to join. So if you are ever invited by someone claiming to be MT5 customer service, don’t fall for them.
2. Overstated Expert Advice Scam of MT5
Expert advice is the feature of the Meta trader platform; it is a program that fulfills the investor’s judgment, logic, and algorithm into the system and automatically places orders when certain conditions are assembled. These programs accomplish orders quickly and fastly respond to trends and price fluctuations.
Although some fake brokers exaggerated the benefits of MT5 automatic trading and fabricated low-risk and lucrative scams to lure investors, and once many investors are tricked into EA automatic trading, they face denial and even lose all the investment.
3. You cannot Take out Money from MT5
The common scam of some fake traders is a Ponzi scheme, which means by constantly absorbing new funds to pay back investors’ profits. Although, some scammers who use Metatrader5 after having a lease with Metatrade decline to withdraw funds whenever investors want to do so to scam them. They also evade their accountability to MT5.
So here, I want to make it clear that MT5 is just a trading platform, and you must ask your trader who opened your account about the particular conditions and process for withdrawing money. The broker firms that do not let for the withdrawal of funds mean you have been scammed.
4. Developing Pirated MT5 platform
As MT5 has an open API (Application programming interface), and many fake brokers develop their own pirated versions of MT5, which are entirely controlled by the developer, the particular quotes may differ from the real data. But they are not so different from the norm as to attract your attention, but the small variation can drown a lot of profit for traders over time.
However, you can also encounter the problem of often disconnections and unstable transactions on the Pirated MT5. Sometimes you can’t set a stop loss point, or the transaction is failed. This malfunction can make a loss. So always be careful and don’t tap any inviting links.
5. Forex Bonus Scams
Scammers fool customers by luring them into a bonus offer that needs you to meet a high turnover requirement. It means the broker will expect you to trade a huge number of contacts over some time. For instance, they may request you to invest a 100 million contract in 60 days, which sounds like a fake or gambling site rather than an online trading platform. Brokers who offer you such bonuses or schemes try to scam their clients by attracting them into making investments without guarantees.
However, these scammers also use fake accounts and software to generate volume. So beware of them and don’t fall for such bonuses.
6. Asking Personal Details
Authentic service providers never ask for your personal information; you just have to enter such details for verification. Remember that there are procedures to access to use a person’s personal data. So you only have to submit personal details on a completely authentic platform. But, if you disclose your close information, then you risk losing personal data that can be used to access your financial records.
How to Spot Metatrader5 Brokerage is a Scam?
Here are a few tips that will help you in spotting a scammer.
- Check if there is any variation between the registered and site address. It is a warning if the registered and actual web addresses do not match. You can directly investigate about the site’s functional name information. The fake site might be newly registered, but they will claim they have decades of experience.
- Verify the regulation license from known regulators such as ASIC, NFA, SEC, FCA, FINMA, and CySEC. However, fake brokerage firms get regulation from frail regulators, which is equal to no regulation.
- Confirm the financial regulatory license, as often fake firm claims to have the license, but it’s in someone else’s name. So it’s always better to check actual details from the regulator’s official site.
- Read the site page description carefully. Sometimes, many companies do not reveal any information about their stakeholders, employees, or profiles. So reading thoroughly about the company about us gives you a clue about the persons involved with the brokerage house.
- Avoid pitfalls that offer a huge return & be careful of the advertisements on platforms.
Final Words: Is Metatrader5 a Scam?
Meta trader 5 is an advanced trading platform with multi-trading features. But MT5 scams are real, and some con brokers manipulate MT5 data and rage your trading activities. So the legality of MT5 thoroughly depends on the professionalism of the broker offering the platform. As a trader, you have to be careful about the broker you choose to deal with & don’t believe in fake reviews.
Hence, researching thoroughly before investing money is the best way to avoid scams. So take your time while deciding broker, as scammers are roaming to steal your money.
