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Forex Scams: Signals, Phony Investment Funds, Robots

Signal Sellers It seems like a new company springs up every day that has the signal service to beat all signal services.

They profess to be able to sell you information on which trades you should make. These signal sellers usually charge a daily/weekly/monthly fee for their service and usually do not offer anything that will help improve your trading. There is no such thing as having a magic key to the market and if there was, why would you sell it?

Phony Investment Funds In the past few years, funds called HYIP(High Yield Investment Program) have popped up all over the place. Most of these(if not all) are scams. They promise you a high level of return for temporary use of your money in their forex fund. It is a type of Ponzi scheme where the investors of yesterday get paid back by the investors of tomorrow. Once the fund runs out of prospects, they usually close down and take whatever money they had with them.

Miracle Software. There is no software that will figure out the forex market for you. However, a quick google search will turn up plenty of software sellers that say otherwise. Some companies out there are selling their special “packages” for upwards of $5,000 and many times it turns out to be something that you can find on the internet for free. It is generally not advisable to buy any type of forex software that will tell you which trades to make.

The usual question the brokers ask the "developers" of such a "software": "Why did not you use it yourself and become a millionaire?. Why are you still selling this chunk of code and not relaxing on a beach in Haiti?" There is no answer to this question and will never be. Besides, if you know basics of programming, you can create the "Forex Robot" yourself. Top online forex brokers often provide open-source C++ or  C# programming environment (see, for instance, Free FXCM Strategy Trader)  endowed with the required libraries to automate your trading. It does not mean that you will be able to write such a magic software yourself, however, it may help you to automate your trades for very simple situations where the human decision is obvious.

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