Can the MT4 Trading Platform be Abused by the Scammers?
Online retail forex traders frequently use the electronic trading platform MetaTrader 4, usually referred to as MT4.
The forex brokers who are granted licenses to use the program make the platform available to clients. The platform was created by MetaQuotes, a brokerage software provider with headquarters in Limassol, Cyprus. FX Charts, introduced the same year that MetaQuotes was founded, was the company’s first offering.
Five versions of trading platforms have been released by MetaQuotes since it was founded. The company’s fourth-generation trading platform, MetaTrader 4, was released in 2005. It swiftly established itself as the global standard for FX trading platforms.
The software’s user-friendly interface, sophisticated chart analysis capabilities, quick execution, and automated trading features have made it quite popular.
Technical analysis and trading may be done simultaneously on the Metatrader4 platform, which is popular among novice and experienced traders. On the flip side, fraudsters are utilizing its widespread acceptability as a key to carry out a brand-new type of fraud known as “MetaTrader 4 scams.”
As the market expands, many newbies are falling victim to MetaTrader 4 frauds. Along with fraudulent brokers, scammers are now using bogus MT4 platforms to prey on inexperienced investors.
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Table of Contents
How do you use MT4?
A client component and a server component make up the software.
The broker manages the server component. The broker’s customers are given access to the client software, which they use to examine live streaming prices and charts, submit orders, and handle their accounts.
The platform is mostly used for margin trading. MetaTrader 4 is a trading platform used by some brokerages. However, it is not intended for full-time usage with the stock market or exchange-traded futures (ETFs).
To utilize the application, traders must download the MetaTrader 4 software from the website or through online brokers upon signing up for an account, either genuine or demo.
Once a user registers, provides trading fees, commissions, and spread information.
The application’s components are simple and fundamental:
- Symbol: to allow users to select markets, such as foreign exchange, indexes, or other assets
- Volume: allows consumers to specify the size of their trades
- Type: to select trade execution following the click of the “buy” or “sell” buttons
- Stop-loss: to reduce or limit the extent of losses
- Take-profit: automatic exit when profit reaches a predetermined level.
- Slippage: set ‘deviation’ to a minimum to prevent slippage.
How Do I Open an MT4 Account?
You must have a trading account now that MT4 has been installed on your computer.
Metatrader 4 cannot be used as a trading platform to get direct access to the currency market. You must open a trading account with a forex broker in order to achieve this.
You will click a button on the website of your favorite forex broker that directs you to register for a live trading account. The next step is to supply the personal information that all reputable forex brokers request.
Additional requirements include providing your tax information and specific identity documents. This complies with the directives of the financial regulatory organizations. Your broker will provide you with login information so you can access your new live account and begin trading after making sure you are who you say you are.
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How To Identify MT4 Trading Scams?
Trading has never been as simple as it is right now.
With only a mouse click, you may trade any currency in any direction, anywhere, at any time. It sounds simple to begin trading Japanese Yen, US dollars, Euros, and Pounds. Trading involves a few different currency pairs, and traders have many alternatives. Finding a trustworthy broker, opening a trading account, downloading Metatrader4 fraud, and starting to trade all appear to be straightforward processes. However, there are numerous hazards included. Additionally, as the sector expands, more newcomers fall victim to fraud.
Most traders become prey to con artists when drawn to a trading opportunity that offers a significant payoff with little to no risk. Scammers provide unique instruments that include a proven secret way to profit. Other scammers employ software known as “Trojan Horses,” which can infect your computer with a virus, steal your personal information, or harm your operating system.
The signs of Forex scams include:
- There are no history checks
- Education or unsupported trading methods
- Spam emails requesting personal information
What Makes MetaTrader the Preferred Platform of Online Investment Scammers?
Scammers use the MetaTrader name as cover while legitimizing their own phony broker platform.
All that is required for con artists to utilize the Virtual Dealer plug-in or other tools that allow them to change real-time market prices, delay those prices, and simulate account balances, gains, or losses is a license to access MetaTrader. Everything appears to be true and feels authentic, yet it’s all a lie.
The victim is unaware that the money they send to the fictitious broker’s bank account or cryptocurrency wallet immediately goes into the scammers’ wallets and is not used for anything else. All of the trades that the con artist purports to advise a victim to buy, sell, go long, or go short are never made with actual money or on real market data.
How to Manipulate MetaTrader
False data is fed to MetaTrader 4 by dishonest brokers, who then manipulate clients’ open trades.
They adjust the market spreads to avoid profit locking and start-stop losses. You thus begin to lose money and believe your trading approach must be flawed. The broker is not compelled to explain such odd trading actions as you attribute the losses to your own judgment.
You can readily identify odd price increases that cause Stop Loss hits if you use demo accounts from various brokers and compare the price changes.
These con artists wait until a client’s account is completely depleted in order to complete the transfer of client funds into their accounts and disguise the negative outcome as a typical trading loss.
Key Takeaways!
By enabling crypto trading on MetaTrader, MetaQuotes aims to hold onto the significant cash stream from the white label licensing while scammers switch to investing in cryptocurrencies. There are no controls on MetaTrader, which not only supports MetaQuotes’ revenue from shady brokers but also invites criminal actors within the bitcoin industry.
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