Forex might be one of the biggest online trading platforms available in today’s world, but being a Forex trader is no easy task.
You have to adjust to the trading conditions, and find out which strategies work for you before you can call yourself a professional. It is much easier to do if you keep journal recording all you wins and losses. This will help you identify what works for you and what not. Then you can analyse this data to formulate new strategies that will help you perform better in Forex.
Myfxbook is a social trading network that doubles up as an automated trading platform. You can also use it store all your data for analysis. Their software will do a flawless job of detecting your weak points and identifying your strengths.
However, the one problem of using myFXbook is that you often run across fake accounts that feed you wrong information. You must be able to distinguish real accounts from fake ones if you do not want to run into needless losses.
The Top 10 Signs that Tell You It’s Fake!
There are a number of signs that you can look out for when you trying to detect a fake account:
You need to look out for the green tick beside the statement, “Track record verified” located at the top of the screen. This tick indicates that the information provided by the account holder matches the data given by the brokers, and effectively, it means that it is a legitimate account.
All the information regarding displayed trades, withdrawals and deposits have been confirmed. If you cannot find the green tick, then beware because the account might be fake. It can also be a demo but it is better to be safe.
In its initial stage, Myfxbook did not have a lot of supported brokers because it still had not proved itself to be legitimate. However, it now supports almost all MT4 brokers. Every trade is performed through an MQL4 server. Myfxbook wanted to make it easier for traders to keep track, and hence has started listing specific servers according to the brokers they use. It is still possible to set up a “fake” server, but it can be detected because there will be no actual broker involved. You will find “Other (MT4)” written, and that is a red flag.
Look out for the line, “Trading privileges verified” situated at the top of the account. There must be a little green tick beside it which stands for verified. This tick means that the account holder who is providing the results has the legal right to utilise the account for trading. This helps prevent people from misusing a holder’s investor password if they procure it in some way. If you do not see the tick, stay away from the account.
Gain and Absolute gain:
Once you open the account, you will find a “Gain” option which refers to the gain you incur from the initial deposit. On the other hand, “Absolute gain” refers to the overall return on your investment (ROI). You will find that the “Gain” part is easily manipulated if the account is not verified. If you use a really small initial deposit, the value can be changed easily.
If you are not helpful, you can be easily tricked into believing that an account is real when it is actually a demo. Be careful to note that traders who have their own funds will treat their trades differently as compared to those who only have fake money. Demo accounts can also execute orders at a higher speed than real accounts can. Unless you disassociate from such a trader, you will find yourself suffering from slippage and re-quotes.
Custom start date:
Look out for accounts that have a custom start date. Any trader who has opted for a custom start date has something to hide. They will be able to select their best moments and display them only. You will remain ignorant of their failures and not be able to gauge how trading with them might turn out to be. It is better to stay away from these accounts because you might suffer undue losses.
Account holders can change their equity curve. They simply do not close certain trades, so they do not appear in the Myfxbook account. If you want to examine a trader thoroughly, then go to the drawdown tab where you will find all the trades listed irrespective of the manipulations of the trader. If you find that the drawdown level falls very low, it is a red flag that you cannot ignore. You must beware of this account.
Open account history:
It is only fair that you know a trader well before you get into business with them. If an account has an open history, that means you will be able to see all the activities that have ever happened in the account. Depending on your research, you can decide if the trader is trustworthy. However, if a trader has a closed history, that means there is something fishy going on. Hiding current trades is one thing, but keeping the entire history closed means that the trader wants to hide bad tactics like overleveraging, doubling up on trades and more. The age and performance of a trader’s account should reflect in the trade.
Myfxbook is kind of an independent verification service which means that everyone can be genuine here. Using a screenshot is a red flag. It means that someone is trying to dupe you. Any screenshot can be altered with the minimum of effort today, which means that you should not trust a trader who just gives you screenshots.
You should go for accounts that have a long trading history so you can truly understand the ups and downs. A fake account will either have a very short account history or a list of only profits which is not plausible.
Do not be fooled!