The following is a guide how to identify fake Myfxbook accounts. See these 7 key point to never again be scammed by used fake Forex accounts.
The Forex market is full of scams. And what better way to deceive a nothing expecting new trader than to show a perfect Forex trade account with flawless history and large gains. But could it be too good to be true?
How to identify fake Myfxbook accounts
In order to sort out all the fake signal providers and gurus, here are five things to look for in order to identify fake Myfxbook accounts.
Reliable Forex broker
Each executed trade shown on Myfxbook is supposedly verified via a MQL4 server. And Myfxbook has listed different servers belonging to different brokers. However, too many brokers these days are fake and can easily provide fictitious trading history and results. One of the worst things for an account to have is to be listed as “Other (MT4).” Make sure the broker used is AtoZ approved Forex broker:
#2 “Track record verified”
A green tick next to the “Track record verified” is another must to confirm that the Myfxbook account is not fake. A track record of an account holder is verified when data coming directly from the broker using an investor password matches the one of the account holder. Implying that the displayed history is confirmed.
Identify fake Myfxbook accounts: Track record not verified
#3 “Trading privileges verified”
The third point is to check if trading privileges of the account are verified. This security feature is verified when the trader opens a pending order with a key given by Myfxbook or the investor password is changed to a password provided by Myfxbook.
#4 Good trading strategy
Good performance history for a year or less does not guarantee future returns. Check from the account holder’s trading history what type of a trader he is – swing, intraday, or maybe a scalper? What is his strategy’s profitability? Can you determine his risk/reward? Does he use stop loss levels? Does he use limit orders? Etc. It would be even better if you could ask him about it and then confirm his trading strategy by the account’s history.
One good example of poor risk management is of Vortex Trader Pro system. Although the strategy makes trades carefully and rarely, used stop losses are much greater than take profit levels. One lost order has wiped out the profits of 6 months.
#5 Gain and Absolute gain
The displayed “Gain” is time-weighted return that measures the performance the system since the initial deposit. While “Absolute gain” is return on investment (ROI) and is usually smaller but represents the performance better.
Unfortunately, both “Gain” and “Absolute gain” can be manipulated, especially the gain, and are affected by deposits. For example, if you would open an account with $1 and add another $100, your “Gain” would be 10000%.
Identify fake Myfxbook accounts: Trading privileges, Gain, and Drawdown.
#6 Drawdown percentage
An account holder can easily play his won/lost statistics and manipulate its equity curve by holding on its loosing trades. The loosing trade will not appear on his Myfxbook account until it will be closed. I have seen many traders do the same across similar online trading journals. Unfortunately, all of them end up crashing their accounts.
Therefore, pay particular importance to drawdown percentage, with 5% per week as a healthy reference, not only to identify the Myfxbook account fake, but to also judge if the account is reliable.
Want to trade with a regulated broker? Open account with AtoZ Markets approved forex brokers:
#7 Too good to be true
When you verified the account’s key points, checked the strategy, broker, drawdown levels, and flawless trade history, but it still seems to go to be true – it likely is. There are a dozen ways to fake an online trade journal account if one really tries hard. Luckily, most scammers want easy money and definitely don’t want to work hard to get it.
Remember these 7 points on how to identify fake Myfxbook accounts and stay tuned to AtoZ to learn so you would trust yourself, and not other traders’ skills.
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