Are Forex traders a real thing? They sound too good to be true. Forex, after all, confuses many. The black screen with red and green lines all over it, the language of pips and spreads…
Forex is similar to the stock market in many ways. It takes time and skill to learn. There’s great room for gain and loss. …And there’s also great room for error.
If you don’t have the right temperament for forex trading, it can be like gambling.
For all these reasons, and more, the idea of a forex autotrader sounds appealing.
What Are Forex Autotraders?
There are many types of forex auto traders, though they all claim to do the same thing. Some aren’t actually auto traders at all, but experienced teams of traders in India or the Philippines (or elsewhere), doing the trading.
Some are computerized systems, sending signals to traders. There downside to this is that the trader has to be ready and near their computer to execute the specific trade right at that second. …Otherwise, they miss the signal and lose out. This isn’t an auto trader at all, but is still a popular method for many.
Lastly, some autotraders aren’t autotraders at all, but are specific traders running an account and allowing others to invest in their “fund.” These can be better than learning yourself, but they can be far riskier because you’re entrusting your money to someone else’s trading strategy.
Are There Real Forex Autotraders?
There is at least one true Forex Autotrader. Mathematical science aside, it appears to have strong safety protocol in place. To protect the funds involved, it only trades 30% of the funds at any one time. In case of a catastrophic financial event, the bulk of the funds will be protected.
Real forex autotraders should also have third party auditing, so you can see the results of the trades. This provides legitimacy and shows it’s not a ponzi scheme or other illegal scheme. Similarly, you should be able to see the amount of money in the fund. Transparency is key if you’re putting your money into an account with an autotrader.
A real forex auto trader doesn’t have a massive, artificial return. A return of 2% monthly is a solid return for a real forex auto trader. If this sounds low, remember that a savings account returns 1% YEARLY. 2% monthly compounding will double the money in the account every three years. If you can find better than that, you’ve found a unicorn, but if you find 20-30% or more, it’s likely lacking long term potential, either because it’s illegal or unsustainable.
Forex Autotraders are Real
Forex Autotraders are real, but due diligence needs to be performed before trusting your money to someone else’s trading platform. They can be far safer than trading yourself, but, done incorrectly, they can jeopardize your money and your legal status.