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How Scam Brokers Use MT4/5 to Create Trading Gurus

TraderKnows
TraderKnows
06-03

Recently, the stock market community has been buzzing with a scandal. Numerous stock market influencers have been exposed for using "Eba Software" to post photoshopped fake profit statements.

Recently, a Beijing trader exposed the inside story of a certain industry chain on his WeChat public account, resulting in a backlash from numerous industry chain trolls. He was accused of photoshopping the account screenshots he posted daily, sparking widespread debate among the public.

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"True becomes false when false is true." The indistinguishable account photoshops have also brought to light the professional fake trading software "Eba Software APP," uncovering a massive stock market deity-making industry chain. With good software photoshopping, the profit rate curve can chase after "stock market gods" and fake experts. Earlier, a well-known financial blogger's photoshopping mishap during trading hours (9:21) and several other financial influencers' "live position" screenshots with inconsistent fonts led to public ridicule.

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Not only is the stock market filled with the "Eba Software" industry chain, but the forex market, the largest financial market globally, also hides many unknown traps behind its prosperity. Some unscrupulous institutions or individuals exaggerate the effectiveness of their trading strategies, creating so-called "trading myths" to attract investors. Through social media and online forums, they spread fake success stories of grassroots traders making it big, crafting numerous fake "trading experts" to gain investors' trust.

MT4/5 Trade Forgery: The Forex Industry's Own "Eba Software"

Generally, scam brokers may manipulate the MT4/5 platform in the following ways:

  • Server Control: Controlling the MT4/5 servers to delay or alter the execution of trading orders, thereby affecting prices.
  • Plugins and Add-ons: Developing or using unauthorized plugins and add-ons that cannot logically verify effectiveness, misleading inexperienced users into believing their "operational mistakes" when the program itself is flawed, ultimately resulting in account losses blamed on user error.

Specific Manipulation Tactics Include:

  • Price Manipulation: Influencing currency pair prices through a large number of trade orders to create conditions for other trading strategies.
  • Slippage Manipulation: Deliberately setting slippage to execute trades at unfavorable prices, harming investor interests.
  • Order Rejection or Delay: Rejecting or delaying order execution to suit the manipulator's trading strategy.
  • Fake Signals: Generating fake trading signals through EAs to mislead investors.

Based on the history of forex projects in China, I have summarized the following common forex fraud methods and real cases to help you filter effectively.

First Type of Platform: No Trading Process

  • Representative Platforms: PTFX, Oumei, British Finance, DDT, GRM, MMC, Weijie, etc. On such platforms, you are given daily profit screenshots after opening an account, indicating profits or losses without actual trading. It's essentially a Ponzi scheme with no trading process, easily identifiable.

Second Type of Platform: A/B Position Hedging

  • Representative Platforms: JuFu Trading Mode: Full trading process, 500-point stop loss, 600-point take profit, one position loses while the other gains 100 points. In practice, brokers do not throw orders to LP during multi-directional operations, using simulated data instead.

Third Type: Fund Compensation, Insurance Positions, Collateral, Fixed Trading Time

  • Representative Platforms: GTS, Yongli, BOT Trading Mode: 300-point stop loss, 600-point take profit, profits transferred to fund companies, losses compensated by fund companies. Such platforms use simulated data without actual trades, with no legitimate business scope involving forex compensation.

Fourth Type: Hidden Orders

  • Representative Platforms: Ningxin Technology Hidden orders come in two forms: no trading mode and selective time period closure. Identification is straightforward based on transaction process transparency.

Fifth Type: Real-time Data Modification

  • Representative Platforms: Youke Finance To judge if data has been modified, check K-line buy points against actual entry and exit points, and observe slippage changes after closing.

Sixth Type: Inserted and Delayed Orders

  • Representative Platforms: GHC This common tactic involves inserting previous trades and displaying current ones, misrepresented as delayed orders.

Seventh Type: Insurance Position

  • Representative Platforms: Haihui International Know that the international forex market has no such thing as insurance positions. Dismiss any platform claiming this.

How to Guard Against "Eba Software" Manipulation Traps?

After summarizing various fraud methods, many investors might feel overwhelmed. Here are a few methods from Traderknows for reference:

  • Choose brokers with long histories.
  • Brokers should be neutral; any signal-providing brokers are scams.
  • Do not trust any trading profit screenshots.
  • Do not believe any guaranteed returns; forex trading in China lacks legal protection.
  • Always scrutinize the so-called "trading gurus" with a critical eye.

Finally, we hope all readers progress further on the path of genuine trading.

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

The End

Wiki

Pig Butchering Scam

The 'Pig Butchering Scam' is a type of financial fraud that originated in Southeast Asia, but has now become prevalent globally. The name stems from the scammers' method of dealing with their victims: similar to raising pigs, they first 'fatten' them by building trust, and then 'slaughter' them by swindling away all their money.

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Risk Warning

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