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Is there such a thing as MetaTrader 5 scam? Believe it or not, many have questioned MT5's safety when the problem comes from the brokers that provide it.
MetaTrader 5 is a highly popular platform for forex trading. It is trusted and widely used by many forex traders due to the level of security the platform offers. However, there have been reports of scams while using this trading platform. Let us start by briefly explaining what MetaTrader 5 is all about.
MetaTrader 5 is a software developed by MetaQuotes five years after the release of MetaTrader 4. It was developed to offer new features and improvements to the existing features on MetaTrader 4. MetaTrader 5 also offers more sophisticated graphics and analysis tools that are much better than the ones on MetaTrader 4.
This now begs the question, "Is MetaTrader 5 a scam?"
MetaTrader 5 is not a scam. MetaTrader 5 is just software that links to various trading platforms and enables trading via personal computers and smartphones. It basically serves as a bridge between brokerages and traders so that traders can receive quotes and place orders.
The MetaTrader 5 scam is not connected to the platform itself as there is nothing fraudulent about the MT5. If a trader should lose money on the MT5 platform apart from the usual price fluctuations, then it is likely that they're dealing with fraudulent brokers. These fraudulent brokers are the ones running a MetaTrader 5 scam and we will now be looking at some of the methods used.
1. Exaggerated EA Earnings
EA which stands for Expert Advisor is one of the features seen on the MT5. It is an automated program that combines the judgment, logic, and algorithms of an investor into the computer. It then uses this compilation to place orders automatically once certain conditions are met. When compared to placing trades manually, EAs can ensure that orders are placed faster and more accurately. At the same time, it ensures the orders respond quickly to changes in prices and trends in the market.
Some fraudulent brokerages then capitalize on the benefits of MT5 automated trading by making up extremely low-risk and profitable scams to entice traders. Once traders get attracted to said automated trading, they become exposed to liquidation/burst positions, retractions, or even end up losing all their trading funds.
2. Development of MT5 Platforms that are Pirated
Due to the open API interface of MT5, it has been possible for fraudulent platforms to develop their pirated versions. Sometimes, the pirated version can be so good that they do not differ too much from the original. Since the developers of the pirated versions are usually in complete control, the specific quotes and spreads tend to be different from the real data. However, the variation will not be too contrasting to draw attention but it will be sufficient enough to erode a lot of traders' profit over time.
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These pirated versions also pose problems of regular disconnections and fluctuating transactions, where it becomes impossible for the transactions to be successful and traders have trouble in opening or closing positions accurately. All those difficulties usually end up in significant losses for traders.
3. Running Promotions under the Name of MT5
Some fraudulent brokers run promotions for MT5 by posing as customer service agents. They encourage people to open an account with MT5 while recommending their brokerage services for trading. However, MT5 does not run a promotion service for general customers but rather for registered brokers with legal operations. So, getting contacted by anyone claiming to be MT5 customer service is a red flag that traders should watch out for.
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How to Fight MT5 Scams?
As a trader, you have to be vigilant about the broker you decide to deal with as this will help protect you from exposure to MT5 scams. One major thing to check for is the regulatory agency in charge of that broker.
Among various regulatory bodies that exist for forex trading, there are top financial regulatory agencies like the Financial Conduct Authority (FCA) in the United Kingdom, the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC) which is responsible for the European Union, the Swiss Financial Market Supervision Authority (FINMA), etc The financial regulatory licenses of any potential broker should be verified to be sure that any of the aforementioned agencies truly licenses the broker.
6 Comments
Willy
Oct 22 2022
Harrie
Oct 26 2022
I have been trading with a hongkong broker who talked me into getting great profits. I put in € 80.000 and he made 2 million of it. Now, afterwards he tells me i have to pay 12% in taxes first to be able to refund my money. I cant even get my deposit back because it is said that the complete amount must be withdrawn all at once. I dont have that amount of money. Their advice is to lend the money from family and friends which is a big joke. Is there anybody who can help me and tell me if all this is correct and of there is a possibilaty to get my deposit back? I had to transfer the money to a crypto.com account and from there through to an MT5 account. Can some one tell me what to do or know any people that can help me with this?
Fiorentino
Dec 16 2022
Harry: I'm sorry, but you won't get your money back. This is indeed a scam scheme and it is very common for scammers to ask you to deposit money.Then they show you the profit and ask you to paid some large fees if you dont do it, you cannot withdraw your money. Notes for you, If you trade yourself with a regulated broker, you can withdraw even $1 if the broker's minimum withdrawal amount is $1. Also, you can withdraw at any time and you don't have to pay anything, although some brokers may charge a fee, but you don't have to re-deposit in the withdrawal process. So what can I say, you were duped. And why do they want you to switch to crypto? Because the crypto is only between you and the scammers and without the knowledge of any third party, so, they can launder money easily without goverment know. Unlike banks where the government can check, in a crypto system only you and the scams know about the money you transfered. After being transfered, I think the scammer will transfer the crypto again to another incognito account to avoid to be tracked
Steve
Nov 15 2022
It is indeed a scam. I had 10k in the account, and i started receiving emails saying I signed up for a promotion, which I did not. They wanted 50k to continue. When I did not depost they drained my account. Contacts to the CEO and customer service have been ignored.
Liky
Nov 20 2022
Before I deposit my money form MT5 for earn more money coins, know my account over money when I want withdraw my money from MT5 theat say to me have to pay tax 29% when you withdraw my money ..is this a scam please answer me as soo as possible thank you.
Kakashi
Dec 16 2022
As I know MT5 needs to connect to the broker's server first to do real trading. MT5 is just a place for trading like market in real life. So it does not offer features such as deposits, withdrawals and other features. However, when you connect your MT5 to the broker's server, you can log into the account you created with the broker, after connected you can start to trade and make a profit, but the profit is also linked to your account. So MT5 cannot scam you since it is just a place (Market). If you say you have to pay 29% tax, it may be due to broker regulations. Brokers may require a fee to be paid upon withdrawal. Therefore, before trading and opening a live account, you should check your broker's regulations. If you are worried that a broker will scam you, check the broker's regulation and google it to see if they are regulated. Some people will scam you.Also try contacting customer service.