Beware of scammers posing as genuine traders on social media such as TikTok, Instagram or YouTube. These groups of signals are designed to scam newbie traders. Most of these “trading marketers” never trade on their own account – they make money by selling signals.
Nobody got rich by following these trading signals. For example, a return of 100% per month would create millionaires in weeks and billionaires in months. However, in the ranking of the richest people, there are no amateur traders.
Pump and dump groups
Pump and dump groups are a common practice. When signals are free, group admins may take a large position in the asset at a lower level before recommending you take the same position, or they may induce a group of people to take a position in the asset that they have recommended for the benefit of someone else, for which they will be rewarded accordingly.
How Forex Signal Sellers Make Money
Forex signal sellers are not experienced traders, but rather unprofitable marketers in the markets looking to cash in on their follower numbers.
Subscription fees
They make money by charging you to join their group. The prices of these groups can vary from 1 to 200 euros per month. The returns on investment announced are often very interesting, but you have to be very careful before signing up.
Profitability often not there
In reality, most signal groups are not profitable. The owner can send daily signals to all registrants, but on average he loses more than he wins. He just tries to get as many people as possible into the group to collect the subscription fee.
In reality, most signal groups do not break even. The “owner” can indeed send daily signals to all registered people, but on average he loses more than he wins. He is simply trying to get as many people as possible into the group, in order to collect his subscription fee.
Copy trading, better than signals?
Copy trading offered by companies such as Diabolo.io is a more effective solution than signals, because you will have exactly the same positions as the experienced trader, and the results are not rigged.
Partnerships with brokers
If a signal group is free, it will require you to register with its affiliate broker. These “free” groups are usually associated with unregulated brokers who pay them for registration and deposit. Group owners are paid for each person they refer to the broker.
Affiliate commissions
So, instead of taking your 200 euros per month, they receive a commission of 800 euros from the broker. Affiliate commissions for opening an account for forex brokers are up to 800 euros per person recruited. It is therefore easy to see how these unethical signal sellers and marketers make huge amounts of money, without ever having learned how to trade forex.
Get rich quick in trading?
Ultimately, there are no shortcuts or magic formulas to get rich quick in trading. Success in trading requires time, patience, perseverance and a good deal of knowledge and experience.
It is important not to give in to the temptation of signal sellers or trading groups that promise extraordinary gains in a short time. Do your own research (DYOR), find reliable sources and use common sense before making trading decisions.
Trading is a serious business that should be approached with caution and diligence.
The first steps
What to check!
- Do they have a registered or established company?
In the event of a dispute, you will never get your money back if step 1 is not followed.
- Seniority and history
Ask for a verified history such as Myfxbook. This must have at least one year of history, ideally several years.
Conclusion
In summary, if you want to follow experienced traders, select only serious companies. For example, Diabolo.io publicly displays certified histories of its experienced traders.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
