In terms of Forex robots, there are a lot of scams out there and the majority, of the robots sold online simply don't work. With the rise of the internet and the growth in online currency trading, there are a huge number of vendors looking to cash in on gullible and greedy currency traders and automatic trading systems are a great way of doing this. The traders who buy these systems, want to make money with no effort and with little or no risk and the robot industry caters for them.

We will look at why automatic Forex robots don't work in a moment - but for now, lets look at how to spot Forex robot scams. If you want to spot a financial scam all you need to do is look for the statements we are going to look at next.

How to Spot an Forex Robot Scam

Here are some simple statements to look out for which will generally mean that the automated FX trading system being sold will not make money.

High Levels of Growth and Little or no Downside Volatility

A software program which claims to make over 100% per annum, with drawdown below 5% ( this is impossible and not true but many robots will claim a 1,000% or more per annum). With growth goes drawdown and not even the world top FX traders, could make a 100% and have a drawdown of less than 5%. With risk goes reward, that's simply the nature of trading currencies.

Accuracy of 80% or More In Terms of Profitable Trades

Most automated Forex robots, claim 85% accuracy or more with there trading signals and I have even seen some claim 100% - so perfect market timing and all for a hundred dollars or so. The fact is the best systems you will find which make money, will only win around 30 - 60% of the time. The claim of these scam robots, of trading signals being more than 80% accurate is simply not true.

Simulated Disclaimers

A lot of robots will carry the disclaimer below which you may have to look for in the small print but when you find it, it shows you how the bot was able to claim such great gains. The track record is not real and just a meaningless simulation which is done on paper, knowing all the closing prices – here it is:

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

Would you trust a robot with this as disclaimer to make you money? Me neither.

Claims of Real Gains But no Audited Track Record

The vendors of Forex Expert Advisors and robots, know that the public is getting wise to simulated disclaimers so many, now present real live track records or irrefutable proof but these are misleading statements.

They present distorted broker statements without declaring open losses or other tricks or offer live results which are always after the event. Do NOT trust these statements, ask for an audited track record by as reputable accountancy firm. However while you can ask, you will very rarely get one – well fact is you won't.

Secrets and Prediction

Always look for a Forex robot scam to claim it can predict the future or has discovered some secret of Forex price movement which no one knows about. Of course if these FX trading systems really could see the future or had learned the secret of making money, they wouldn't sell the trading strategy to you me or anyone else, they would be to busy making money.

If it Looks to Good to be True – It is

Of course there many traders who fall for Robot scams and believe, they can beat the market but they all lose money. If you think about what has been written so far, it is pretty obvious that you are not going to buy a FX trading strategy which can give you huge profits with low drawdown, for a hundred dollars.

Final Words

Most reputable vendors will have audited proof of their gains and the track record may make money but there will be drawdown along the way. Forex Expert Advisor scams (as some of these automatic Forex software packages like to be called) are easy to spot and the only thing there experts at is losing money – don't fall for get rich quick or holy grail systems, they all will lose you money.

If you want a good Free Forex Robot that makes money you will find it in the free info section of this site and you can also get the legendary Turtle Trading System which has made millions in audited profits. Both will have periods of drawdown but if you trade them longer term, they can make you triple digit profits in around 30 minutes a day.