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5 Ways In Which Users Get Fooled While Using Trading Bots

The first and foremost thing to remember while trading in a financial market is the fact that there is no such thing as a secure investment. You could be the greatest genius of all time but there is no guarantee that you will be able to eliminate all risks completely. Employing trading bots like FinTech Ltd. in the finance industry will not change the way things are because there are a number of problems associated with these bots. Listed below are the 5 ways in which users are fooled into using trading bots without any sign of profit.

Fake Algorithm

There is a recurrent promise that a trading bot makes a secure investment. While the bot might be working with actual values, this is no big deal because currency values are easy to access and can be used by anyone for calculations.

These trading bots give you calculations that show how you are bound to have huge returns with zero risk. This is practically impossible.

Unreal market views

Most scam companies base their methodology on unreal market conditions. These look good as long as they are on paper but they are hardly successful in live trading. The Forex market is fast-moving and finding out one or two unreal inputs could be quite challenging. This is how trading bots fool you while you are out there fighting losses.

Extended agreements in fine print

A lot of binary options scammers are fooling traders by including extended length agreements in fine print so that their policy is in a way covered before the trader can reach out to the governmental regulations about it. The broker is always the winner in this long term policy, wherein the method of diversification is used trick the trader into investing a number of securities at once. The trader is made to believe that this will lower the risks.

Refuse to honor client’s withdrawal

A lot of binary option companies are also tricking their clients by making them invest in a certain number of trades before he can make a withdrawal and later refusing to honor the withdrawal. They simply refuse to process the client’s request and if you have already signed up without reading the fine print carefully, there is no looking back for you.

Promise of secure investment

While using trading bots, you could be easily tricked into the promise of a secure investment by scammers using the concept of standard deviation less honestly. They will give you the lowest calculated risk and follow a completely different calculation and since there are several ways in which standard deviation is calculated, they cannot be held in court of law.