Almost sure the broker is a scam, but I do not understand this!?

exceed

New Member
tl,dr can somehow a broker fabricate the data displayed to their clients?

Hey everyone, so complete noob here. Really need your help to figure this out.

So I was contacted through close friends referrals by these brokers, claiming to get me ridiculous returns through automated trades (robots), so the classic too good to be true situation.

My referrals were ecstatic, and were extremely happy with the service, saying they have cashed out, and they are already in profits.

So instantly I thought this is a ponzi, and I am pretty sure it definitely is. But in order to prove this to my friends, I decided to hop in with a small amount that I don't care losing, in order to show them what this is.

I have already caught a lot of lies from the brokers, stuff like saying they are regulated etc. So I have zero trust in them.

So they have opened me this account on MT5, and I have logged in through the credentials they provided on the mobile app.

They provided a ridiculous 40% bonus on my account. And soon after the trades have started.

Now this is where I cannot get my head around.

This robot appears to be doing trades, and within 2 days my account is already almost 15% in profit.

From what I have read so far, people seem to say the data in MT5 cannot be faked by brokers.

I personally believe, that all of the data I see on the mobile app is completely made up.

So my question is if this is possible? Can a broker fake the transactions, balance etc of their clients?

Or could this actually be a demo account opened by the brokers, and they are fabricating these results.

Basically how can I tell if the account they opened for me on MT5 is legit, if it's a demo?

When I tap on my account's info button, I see an account number, the name of the brokers, and the it says "Hedge access point: Meta Trader 5 Access Server"

It doesn't say demo anywhere.

The app I downloaded, is definitely MT5 with over 10 million downloads on Play Store.

Could someone please clarify what could possibly be going on here.

Can brokers plays with the data displayed to their clients?

Many thanks
 
So I’ve only been trading for around a year, but I do think that scams are common with brokers, however, I’m interested in seeing what others think about this.
I have a few questions as well. What’s the name of the broker? Also, have you tried looking at online reviews to see if anyone else has had similar experiences? Perhaps you could also check to see if the broker is regulated - it probably isn’t if they’re pulling a scam. I would think that maybe the 40% bonus has terms and conditions that would make it really difficult to withdraw any profits, but like I said, I’m still rather new to this and may be missing something.
 
So I was contacted through close friends referrals by these brokers, claiming to get me ridiculous returns through automated trades (robots), so the classic too good to be true situation.

Did you meet your "friends" online? Was it a social or dating site?

Are you aware there's an extremely common scam being seen where people are befriended online by an attractive person of the sex you're into, spending weeks or even months building a "relationship", then they start bragging about trading returns that seem unreal.

They they provide brokerage statements proving it.

Finally they suggest you invest with them and their broker.

The broker is in on it. It's not hard at all to generate fake statements.

The broker is likely overseas, and unregulated.

Any money sent to the broker will not be seen again.

After you deposit, they will show profits in your account and encourage you to deposit more. If the sum in total is a lot, they will then pull a trick and say you owe tax on the gains and you need to send the tax amount to the broker as well.

All withdrawal requests will go unanswered.

Once you realize it's a scam, they will stop responding to you.

Sound like your situation?
 
Your better off with more well known brokers. Don’t get involved with things like bonuses as is no different to what the gambling sites offer
 
So I’ve only been trading for around a year, but I do think that scams are common with brokers, however, I’m interested in seeing what others think about this.
I have a few questions as well. What’s the name of the broker? Also, have you tried looking at online reviews to see if anyone else has had similar experiences? Perhaps you could also check to see if the broker is regulated - it probably isn’t if they’re pulling a scam. I would think that maybe the 40% bonus has terms and conditions that would make it really difficult to withdraw any profits, but like I said, I’m still rather new to this and may be missing something.
No, the brokers are not regulated, actually they are not even incorporated. No idea how they could get a broker account on mt5, but that's probably easy. When I joined them I was already almost sure that this was a scam, I just joined to try to figure out what was going on, just to try to sort of understand and explain my friends they should be very careful with these guys. I would rather not tell the name of the brokers, as they have quite a few personal info about about me, and as they are local, I dont really want to get in more trouble.
 
Did you meet your "friends" online? Was it a social or dating site?

Are you aware there's an extremely common scam being seen where people are befriended online by an attractive person of the sex you're into, spending weeks or even months building a "relationship", then they start bragging about trading returns that seem unreal.

They they provide brokerage statements proving it.

Finally they suggest you invest with them and their broker.

The broker is in on it. It's not hard at all to generate fake statements.

The broker is likely overseas, and unregulated.

Any money sent to the broker will not be seen again.

After you deposit, they will show profits in your account and encourage you to deposit more. If the sum in total is a lot, they will then pull a trick and say you owe tax on the gains and you need to send the tax amount to the broker as well.

All withdrawal requests will go unanswered.

Once you realize it's a scam, they will stop responding to you.

Sound like your situation?
Thanks for getting back. In my situation, my friend who referred me is actually a very good friend, and the whole reason I entered this was to prove him, this cannot be real, and he shouldn't trust these guys. Anyhow, I managed to convince him eventually, and he is not referring anyone else, and letting know his other friends whom he has referred.

My understanding is that they are a ponzi scheme, that's why they are paying out their initial clients, and as everyone is happy, that's how they keep getting referrals.
 
Your better off with more well known brokers. Don’t get involved with things like bonuses as is no different to what the gambling sites offer
Indeed, honestly I did not even understand the reason of bonuses when I joined, but after some reading about margins and leverages, i do understand what they are trying to do with these. Margin calls, stop outs, etc.
 
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