What is MT4? Is MT4 a scam?
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Whether Metatrader (MT4) 4 is a scam or not is a matter of great concern to many investors today because it is a popular trading platform used by a lot of people. MT4 is considered a powerful tool for traders when participating in the financial market. However, some traders have unfortunately been the victims of a forex scam, MT4 was probably at the center of it. This article explores how frauds use MT4 as a prop in their scheme.
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 MetaQuotes Software company. 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 buying, selling, 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. Besides, MT4 is also a platform used by many programmers to create advanced indicators. The warehouse of indicators that can be used on this platform is enormous, 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 most stringent IT security regulations set forth by financial regulators in every country worldwide. So MT4 is safe, reputable, and reliable software.
However, MetaQuotes is a software vendor and sells its software licenses to any business that can afford it. That means their customers belong to many different subjects, which can be reputable 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 unjustly.
MetaQuotes does not interfere with the business activities of customers using their software. Therefore, they have no obligation or responsibility when you open an account at a fraudulent broker. Opening an account or depositing and withdrawing is entirely done through the broker of your choice, not MT4.
In other words, the reputation of MetaTrader 4 does not reflect the security of the broker you sign up for.
Hence, traders need to choose a reputable broker to trade on the financial market.
3. Why do scam brokers use MetaTrader 4?
There are a few simple reasons brokers choose MetaTrader 4 to run scams.
- First, this is a reputable platform, extraordinarily familiar and popular in the community of traders. Therefore, when it comes to supporting MT4 trading, many people conclude that the exchange is also safe and legal without learning any more information.
- Compared to the amount of money scam brokers can make from their traders, the platform is relatively cheap. In addition, the setup 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 to be fraudulent, they close down and produce another brand with little effort and cost.
- MetaTrader 4 is hosted on their own devices, either. This allows them to connect any market feed they want, edit data directly from the database, and install plugins to change the platform’s functionality 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 each information they provide. If there’s so much good information out there that it’s hard to believe, you need to reconsider.
To know if the exchange is a scam or not? It would be best 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 US: National Futures Association (NFA), Commodity Futures Trading Commission (CFTC)
- United Kingdom: British Financial Conduct Authority FCA
- In Australia: ASIC Investment and Securities Commission
- Japan: Financial Services Agency FSA
- Hong Kong: Securities and Futures Commission SFC
- Cyprus: Cyprus Securities and Exchange Commission (CySec)
– Trading fees: You need to know the fees that you have to pay when opening an account at any broker. Many scam brokers charge hidden fees or additional fees that you wouldn’t expect until the transaction.
– Deposit and withdraw: To avoid money laundering, the principal amount you deposit is usually required to withdraw to Visa or MasterCard, depending on the method you choose at the first deposit. If the payment method is unorthodox methods, 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 merely a platform, a tool to support trading and analysis of opportunities. If you are new to the financial markets, have lost your money, and thought that MT4 is a scam. Then that would be no different from you concluding that Facebook or WhatsApp is a scam when the person uses that platform for profiteering. Therefore, before opening an account anywhere, learn the information of that exchange carefully to avoid losing money unjustly.
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