Now chances are that you have already realised signal providers are all scammers. Well let's not be to harsh lets say 99.9% are scammers. REGARDLESS if they are free or paid. Because nothing is free in life, and certainly nothing is free in the investing and trading world. Apart from having to be ready to place trades 24/7 from a stupid telegram message and trading stupid lot sizes there some things that cleary shout scam.
So in this blog post we are just going to point out a few red flags you should check before joining a signal provider or spending any money with them! And before depositing into their recommended broker.
And if you still use signals after reading this then we are sorry to tell you but you will never be a trader! Harsh truth but that's the reality.
Now we are not saying that being flashy is wrong. BUT and a big BUT if a 'trader' has more photos of their rolex and car than they do trading analysis then guess what they are FAKE. If you truly believe you will be able to turn £250 to £10000 as a lot of them promise, then you should pack your bags and go back to school. If it was that easy, why would anyone work? Think about it.
Having a 10k watch and a £250k car all from trading signals is NEVER GOING TO HAPPEN! Especially from £250....
Let's do some simple maths lets say your 'guru' is extremely good and can generate 100% profit a month. VERY VERY unrealistic. And they say can start with £250. So by compounding we can work the following out:
Month 1 : £250
Month 2: £500
Month 3: £1000
Month 4: £2000
Month 5: £4000
Month 6: £8000
Month 7: £16000
So even if the trader could achieve 100% every month it would take you around 6.5 months to hit £10k from £250. And that's by doubling your account every month. Which in case you didn't realise is basically impossible.
THINK ABOUT IT, IF IT WAS THAT EASY WARREN BUFFET WOULD USE THEIR SIGNALS!!!
Following on from flashy instagram, another common red flag is fake followers. Now we are not saying every follower will like their post but when they have 25/30K and their photos don't even get over 250 likes. DO THE MATH!
Now surely this should be a red flag to anyone, so say amazing signals that can make you profit every month, but you have to use their partner broker? WHY? Well simple answer is they receive commission for you basically losing your money haha. As when you see the lot sizes they tell you to do your account is never going to make it. Now we aren't here to bad mouth any broker, as let's be honest they are a business and if people are prepared to use them and not see the red flags then that's their problem.
BUT we do have a tip that will help you! When choosing a broker, have a look at their affiliate programme. If they offer a lot rebate (so they pay their affiliates commission per trade). This means the broker will do everything they can to make sure the trader is happy as more winning trades = more trades being made = more commission!
If they offer CPA, usually around £350-600 per sign up referral. THE BROKER DOES NOT CARE ABOUT YOU!
Simply they want uneducated traders that will just keep depositing and losing. so they will happily pay scammers a high one off commission as they will make it back 10 fold.
There is a lot more to it. But just use logic, which unfortunately most signals users don't have.
If there service is as good as they say an they make as much money as they say, why do they need commission from a broker? Surely they would let you use any broker you feel comfortable with? ONCE AGAIN THINK ABOUT IT!!!!
NO MY FX BOOK (or verified alternative)
Now a lot of new traders won't even know what the above is. But a very simple description is it is a way traders can verify the results and history. SO if these so called gurus are as good as they say they are, surely they would want to boast about their verified results. Well we can assure you now, none of them do! Well at least 99.9% don't!!! ONCE AGAIN THINK ABOUT THAT!!!!!
Some other red flags and to recap the ones above but without going into to much details (yawn) :
Always on holiday (when do they chart up)
No phone number (surely you want to be able to speak to at least someone first)
Have to use their broker
No reviews ( if they are that good must have some real good reviews)
No My FX Book (or any verification)
Always do some research
Now then if you haven't already checked out our Trading Top Ten educational sites make sure to do so! You will be shocked how many FREE yes FREE really we mean FREE resources there is out there in the big old wide world.
Coming 2021!! The Scammers Of Forex coming soon, we investigate and list all scammers so you don't have to! Also make sure to check out www.thefxbook.com this is our new social media trading platform that will be scam free.
REMEMBER forex is not easy and your money can be lost. Make sure to always demo anything before using live funds.