Whether Metatrader (MT4) 4 is a scam or not is a matter of great concern for many investors today because it is a popular trading platform used by many people. MT4 is considered a powerful tool for traders when participating in the financial market. However, some traders were unfortunately victims of a forex scam, MT4 was probably at the center of it. This article explores how fraudsters use MT4 as a support in their scheme.
Table of Contents:
1. What is MetaTrader 4 (MT4)?
MetaTrader 4, also known as MT4, is a trading platform that allows traders to trade on the foreign exchange market and other financial products. MetaTrader 4 was officially released in 2005 by the company MetaQuotes Software. Currently, it is the most popular trading platform.
Many people often confuse MT4 as a broker, but MT4 is just a platform to help you make buy, sell, and technical analysis transactions. You need to open another broker’s account and log in to MT4 to analyze and trade.
When trading on MT4, you are provided with many fundamental technical analysis tools and indicators. In addition, MT4 is also a platform used by many programmers to create advanced indicators. The stock of indicators that can be used on this platform is huge, rich and diverse. You would be “overwhelmed” by this vast number.
2. Is MT4 a scam?
MetaQuotes – Mt4 software development and management company is well known as a provider of platforms that meet the strictest IT security regulations set by financial regulators in every country of the world. So MT4 is a safe, reliable and reliable software.
However, MetaQuotes is a software provider and sells its software licenses to any company that can afford it. This means that their customers belong to many different subjects, which can be trustworthy or scams.
According to statistics, most brokers today support trading on MT4. Many legitimate brokers regulated by financial authorities support access and trading on MT4, such as XM, Hotforex, FXTM, Weltrade, FxPro, etc. But there are also many exchanges. Scams cause many people to lose money unfairly.
MetaQuotes does not interfere with the business activities of customers who use their software. Therefore, they have no obligation or responsibility when opening an account with a fraudulent broker. Opening an account or depositing and withdrawing is entirely through the broker of your choice, not MT4.
In other words, MetaTrader 4’s reputation does not reflect the security of the broker you sign up for.
So, traders need to choose a reliable broker to trade on the financial market.
3. Why do scam brokers use MetaTrader 4?
There are a few simple reasons why brokers choose MetaTrader 4 to run scams.
- First, this is a reputable platform, extraordinarily familiar and popular in the trading community. Therefore, when it comes to supporting MT4 trading, many people conclude that the exchange is also safe and legal without learning any further information.
- Compared to the amount of money that scam brokers can make from their traders, the platform is relatively inexpensive. In addition, the installation process is also quick and easy.
- MetaQuotes offers a white label creation solution, which means that license holders can create multiple trademarks. When a broker is found fraudulent, it closes and produces another brand with little effort and cost.
- MetaTrader 4 is hosted on your own devices. This allows them to link any market feed they want, modify data directly from the database, and install plugins to tweak the platform’s capabilities in favor of the market.
4. How to Avoid Scams When Trading on MetaTrader 4
To avoid scams, your approach needs to be more detailed and thorough with every piece of information they provide. If there is so much good information out there that is hard to believe, you need to reconsider.
To know if the exchange is a scam or not? It would be better if you considered the factors that are:
– Exchange Supervisory Authority: The supervision of the activities of CFD exchanges is regulated by the world’s leading regulatory bodies such as:
- In the United States: National Futures Association (NFA), Commodity Futures Trading Commission (CFTC)
- United Kingdom: British Financial Conduct Authority FCA
- In Australia: ASIC Investment and Securities Commission
- Japan: FSA Financial Services Agency
- Hong Kong: Securities and Futures Commission SFC
- Cyprus: Cyprus Securities and Exchange Commission (CySec)
– Trading fees: you need to know the fees you have to pay when opening an account with any broker. Many scam brokers charge hidden fees or additional fees that you wouldn’t expect until the transaction.
– Deposit and withdrawal: To avoid money laundering, the principal amount you deposit is usually required to withdraw to Visa or MasterCard, depending on the method chosen at the first deposit. If the payment method is unorthodox, such as an offshore bank account, you need to reconsider.
– Is the phone number or email address used by the scammer listed on the broker’s website?
In conclusion, you need to remember that MetaTrader 4 is simply a platform, a tool to support trading and opportunity analysis. If you are new to the financial markets, you lost your money and thought MT4 was a scam. So it would be no different from you to conclude that Facebook or WhatsApp is a scam when the person uses that platform to profit. Therefore, before opening an account anywhere, carefully learn the information of that exchange to avoid losing money unfairly.
