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Yes, trades in MetaTrader 5 (MT5) or MetaTrader 4 (MT4) accounts that you follow through an investor password can be manipulated or faked, even though the investor password provides a read-only view of the account. Understanding how such manipulation can occur and recognizing red flags can help you avoid falling for fraudulent setups.
Here’s a detailed explanation:
How Trades in MT5 or MT4 Can Be Manipulated
- Fake Broker Servers
- Fraudulent brokers or individuals may set up fake trading servers that mimic real broker platforms.
- Trades shown in these environments are not connected to actual market data, allowing for the complete fabrication of trade history, account balances, and profits.
- Trade History Manipulation
- Some brokers or individuals accessing the MT4/MT5 server database can edit the trade history.
- This can include adding winning trades, removing losing trades, or altering trade sizes and profits to inflate account performance.
- Plug-ins for Deception
- Certain unethical brokers use server-side plug-ins, like the Virtual Dealer Plug-in, to manipulate what is displayed on the investor account:
- Delayed orders to show trades filled at better prices than possible.
- Fabricated results to display unrealistically consistent profitability.
- Certain unethical brokers use server-side plug-ins, like the Virtual Dealer Plug-in, to manipulate what is displayed on the investor account:
- Investor Password Manipulation
- Even though the investor password provides read-only access, the information displayed can be entirely fabricated if the broker or server is fake.
- The account might show large profits and minimal drawdowns to lure unsuspecting investors.
- Copy Trading with Delayed or Fake Data
- If the account is linked to a signal provider or copy-trading service, the trades displayed might not reflect actual market conditions or executions.
- Fake setups can simulate high performance by artificially improving win rates or hiding losing trades.
How to Detect Fake Trades in MT5/MT4 Using Investor Password Access
- Verify the Broker
- Ensure the broker is regulated by a credible financial authority (e.g., FCA, ASIC, CySEC).
- Check the broker’s reputation through forums, reviews, and regulatory databases.
- Cross-check with Real-Time Data
- Compare the trades on the account with actual market data and price movements. Unrealistic trade entries and exits might indicate manipulation.
- Analyze Trade Consistency
- Watch for perfect performances, such as:
- No drawdowns.
- Consistently profitable trades with no losses.
- Unrealistically high win rates.
- Watch for perfect performances, such as:
- Request Additional Verification
- Ask the account holder to provide login credentials for real-time monitoring.
- Request a Myfxbook or FXBlue link with verified data:
- Ensure the account is marked as “track record verified” and “trading privileges verified.”
- Test with a Demo Investor Password
- Request access to another investor account from the same source. If the second account also shows near-identical “too good to be true” results, it’s likely a fake setup.
- Check Execution Details
- In MT4/MT5, observe the following:
- Slippage: An abnormal absence of slippage in volatile markets could be a red flag.
- Spread: Unrealistically tight or no spreads on trades might indicate a fake server.
- Latency: Check for immediate execution in all trades, which is unusual for live accounts.
- In MT4/MT5, observe the following:
- Inspect the Broker’s Server Location
- Right-click on the MT4/MT5 platform and select Open Data Folder. Look for broker-related information (e.g., server IPs). It may be a fake if the server is hosted on obscure or non-industry-standard networks.
Can Verified Platforms Also Be Faked?
Even on reputable platforms like Myfxbook or FXBlue, trade performance can sometimes be manipulated through unethical methods:
- Demo Accounts Posing as Live Accounts: Demo accounts can be labeled live accounts with modified data.
- Trade Mirroring on Fake Servers: Trades from fake accounts are mirrored onto real tracking platforms to give the illusion of legitimacy.
Tips to Avoid Falling for Fake Trades
- Verify Live Account Status
- Ensure the trading account is labeled as a “live account” and not a demo.
- Ask for a statement downloaded directly from the MT4/MT5 platform.
- Request Withdrawal Proof
- Genuine traders should be able to show verified withdrawal proofs, as profits are only meaningful if they can be withdrawn.
- Avoid Unrealistic Promises
- Be cautious of accounts showing impossibly high monthly returns (e.g., 50% or more) with no losses or drawdowns.
- Test Signal Reliability
- Follow the account on a demo or micro account for a few weeks to confirm the reliability of trades before committing funds.
Conclusion
While MT4 and MT5 are powerful trading platforms, trades displayed through an investor password can be manipulated if the account is hosted on fake servers or edited by unethical brokers. By performing due diligence, cross-checking performance, and looking for signs of manipulation, you can protect yourself from falling victim to fraudulent schemes.
Always prioritize transparency, work only with regulated brokers, and verify live trading results independently.
Trader at Leanta Capital
Igor has been a trader since 2007. Currently, Igor works for several prop trading companies.
He is an expert in financial niche, long-term trading, and weekly technical levels.
The primary field of Igor's research is the application of machine learning in algorithmic trading.
Education: Computer Engineering and Ph.D. in machine learning.
Igor regularly publishes trading-related videos on the Fxigor Youtube channel.
To contact Igor write on:
igor@forex.in.rs
He is an expert in financial niche, long-term trading, and weekly technical levels.
The primary field of Igor's research is the application of machine learning in algorithmic trading.
Education: Computer Engineering and Ph.D. in machine learning.
Igor regularly publishes trading-related videos on the Fxigor Youtube channel.
To contact Igor write on:
igor@forex.in.rs
