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MT4 Brokers Accused in Being Scam?

February 27, 2008 by

It started eleven days ago on the ForexFactory forum, but I’ve read it first about a week ago on a TalkGold forum’s thread titled “Mt4 Brokers Are All Scam Brokers By Definition”. Of course, I’ve got interested in this topic because I’ve been trading on MetaTrader brokers’ accounts for almost two years and I have never thought of them being a scam “by definition". That made me read both of the threads thoroughly.

Here is the main problem that is pointed out in those threads. Back in February 2006 MetaQuotes announced a 5-day test of the Virtual Dealer Plug-in on the demo trading server. This plug-in was designed to imitate “real dealer work — random time of answer, requote etc [sic!]”. Eleven days ago a post on ForexFactory forum shows a part of some document’s scan describing plug-in’s functionality, including such things as “automated moving up the Limit & Stop Level and Freeze Level according to the preset list of news time”, “disabling (setting, modifying, deletion) of pending orders during news receiving”, “Max Losing Slippage”, “Max Profit Slippage”, etc. Thread starters and many other forum participants believe that this plug-in is being used in all MetaTrader 4 brokers on real trading accounts and that’s what making all such brokers the cheaters. The fact that MetaQuotes deleted all threads about the Virtual Dealer Plug-in on their forum added even more confidence to those traders.

So, what now? Personally, I can say that there’s no actual proof that this plug-in is used on real accounts on any of the MT4 brokers (I am not saying all). I am almost sure that this plug-in (or its newer version) was used during the Automated Trading Championship by MetaQuotes (this competition was for demo accounts). Another point — even if this plug-in can be used on real accounts and is used there by some of the MT4 brokers, it doesn’t imply that all of them are using it and are outright scams.

What will happen when more traders will read about this problem? Those, who thought that the MetaTrader brokers are evil, will definitely become more sure in their belief, those, who didn’t mind before, most probably won’t mind this problem too.

What should you do in this situation? I don’t know, but I’ll continue to trade with the brokers I’ve been using for a long time now, if I find that they hunt my stops or have a high slippage in their favor I will immediately switch to another broker. But I don’t think that it’s a good choice to leave a broker, with services of which I am currently satisfied, just because of some suspicious plug-in’s existence.

11 Responses to “MT4 Brokers Accused in Being Scam?”

  1. loopman

    Please, could you be of assistance by telling me the name of the MT4 brokers that you’ve been using for the past two years so that I can use them as well as I also believe what you’re saying.

    Thanks.

    Reply

  2. Andrei

    loopman, I have been using LiteForex, FXOpen and Northfinance (though, I’ve stopped to use the latter recently).

    Reply

  3. Gabriele

    Th best comments I’ve read about this problem is “Its not the market, its the provider..”

    Reply

  4. JS

    Information. No solution. solution would be IS NFA and CFTC doing their job! and care to look in to this matter. other then that that what else can we do.

    Reply

  5. SuddenTrader

    what a jerk JS is – as if the NFA shall rule the whole world. NFA is for US brokers. And of course nobody wants them outside US. I trade with a broker that does not have this tool. if you are interested – fxcast.

    Reply

  6. WizardTrader

    Hey, I’ve been using GoMarkets for the last 4-5 months, great MT4 platform in Australia, had trouble with other MT4 providers, but these guys are great, no issues with anything! highly recommended!

    Reply

  7. Cosmicz

    GOMarkets VERY VERY DODGY check your graph against orders pip taken graph plus pips taken again order. requotes, spikes, large spreads increase in morn EUR/USD They do have a NICE plug in

    Reply

  8. sarah

    Is Forex-Metal a scam company?
    I open an account with them on 13th of May this year. They rose up 2 pips for my account one week ago without any notice. I sent the 100,000usd withdraw request on 25th of May, but the money still in their bank up to now. Do you know this company? How do you think about this company? Sarah

    Reply

    Andrei Reply:

    “They rose up 2 pips for my account one week ago without any notice.” – what does it mean?
    You deposited $100,000 to a company, which you doubt to be a scam?

    Reply

    Nemra Reply:

    +1.
    Looks like an attempt to blacken the reputation of Forex-Metal, maybe “sarah” is a competing broker “representative”.

    Reply

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