The increasingly popular market for automated forex trading robots and forex signal generator software has unfortunately given the criminally minded yet another avenue to defraud the unwitting public via the sale of so-called “black box” software packages. In the end of this article see our links to doubtful softwares in the market.
In essence, black box software is any program whose internal functions cannot be accessed by its user and its inner methods of operation are not revealed to the user by its vendor.
Why is Black Box Software Risky?
Purchasing black box software can present an additional scam risk to consumers when the vendor refuses to make the methods that their software uses known. For example, a vendor might claim that the software they are selling contains “proprietary information” that might involve some form of unspecified trade secrets.
They then make this alleged proprietary nature of the software their primary excuse for offering a software package for sale that their customers can never actually understand the inner workings of. Instead, they can only use the black box software blindly according to the vendor’s instructions.
When trading forex using such systems, this might well expose the customer to excessive market risk in certain situations that they are otherwise unaware of since they do not know how the program operates. Example of a black box software.
How Black Box Software Scams Operate
Due to its inherently secretive nature, this type of black box forex fraud may not be very easy to detect. This occurs simply because the software provider has locked up the source material for the automatic trading robot or forex signal generator system into the black box software and does not allow the user access to it.
For example, in the case of some black box forex software scams that have recently come to light, the software might just contain some repackaged standard technical analysis indicators that the customer could easily have put together from free technical analysis resources.
Alternatively, the black box scam might consist of repackaging automated forex trading robot software that has been made freely available elsewhere online by its original developer.
Each of the above types of scam software products might be offered as either a Custom Indicator or an Expert Advisor (example of an expert advisor scam) that installs and runs automatically within the popular MetaTrader 4 forex trading platform software that supports these kinds of forex software.
How to Avoid Black Box Forex Software Scams
This type of forex fraud can be especially difficult to discover since the exact nature of the software’s operation has been hidden from the user by offering it as black box software.
Often, it takes someone carefully observing the software’s performance relative to other known software to detect the scam at all.
If you do not wish to take the risk of purchasing black box forex software that may be a scam, one of the best ways to research the software is by searching for it by name online with a major search engine. You can further refine your online search by including the text “scam” or “fraud” in the search engine query box.
Of course, you will need to discern which search results are actually articles written by affiliate marketers of the black box software. Often, these articles start out by asking whether the software in question is really a scam and then end by describing the product in glowing terms.
Somewhat more honest and reliable are the various online discussion forums that appear on websites that deal specifically with forex frauds. Some such websites are better than others at detecting and identifying forex scams.
Nevertheless, the individuals posting in the forums hosted by these sites can often shed some light on the software’s inner workings. They also often provide useful hints as to whether or not the software operates successfully and as promised by the vendor.
The Potentially High Cost of Such Scams
It might not seem much of a scam to the customer if the black box forex software vendor was just asking $25 for repackaged products available freely online, although the vendor might need to answer to the original developer of the software who would own the copyright to their invention.
Nevertheless, some exposed black box forex fraud software vendors unfortunately charge thousands of dollars for these simple ripped off systems that no one would pay that sort of money for if they were aware of their true nature.
This scam risk should make anyone considering buying black box forex software think twice, if not three times, before making such a purchase. Naturally, if you do decide to go ahead and purchase this type of software anyway, you will always want to make sure that you can return it safely. Toward this end, you can look for a purchase and return policy handled via Clickbank for example.
The involvement of a reputable third party like Clickbank for payments and returns is often far preferable to having to deal directly with the black box software vendor themselves. Basically, many scam software vendors do not wish to return your money once you discover that their product is a scam or does not otherwise work to your satisfaction.
Other examples of expert advisor and forex software frauds:
- Former Schwab, Wells Fargo, and Morgan Stanley Advisor is Sentenced to Seven Years
- FX Fraudster On The Run After £70m Ponzi Scheme Collapses
- Fallout from “Hate-Symbol” Pepe Meme Could Have Implications for the Entire Crypto Sector
- Is this the Biggest Scam Operation in the World?
- Martin Lewis Fans Targeted in Bitcoin Scam
- NFT ‘Wash’ Trading – The Fake Deals Keeping Prices Artificially High
Former Schwab, Wells Fargo, and Morgan Stanley Advisor is Sentenced to Seven Years
FX Fraudster On The Run After £70m Ponzi Scheme Collapses
Safest Forex Brokers 2023
|Broker||Info||Best In||Customer Satisfaction Score|
|#1||73 % of retail CFD accounts lose money Founded: 2014||Global Forex & CFD Broker||
Best Trading Conditions Visit broker
|#2||Your capital is at risk Founded: 2014||Global Forex Broker||
BEST SPREADS Visit broker
|#3||Your capital is at risk Founded: 2006||Globally regulated broker||
BEST CUSTOMER SUPPORT Visit broker
|#4||86% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008||Global CFD Provider||
Best Trading App Visit broker
|#5||Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010||Global Forex Broker|
|#6||67% of CFD traders lose Founded: 2007||Global CFD & FX Broker||
ALL-INCLUSIVE TRADING PLATFORM Visit broker
|#7||Your capital is at risk Founded: 2009, 2015 and 2017||Global Forex Broker|
|#8||Your capital is at risk Founded: 2006||CFD and Cryptocurrency Broker||
CFD and Cryptocurrency Visit broker
Forex Fraud Certified Brokers
Stay up to date with the latest Forex scam alerts
Sign up to receive our up-to-date broker reviews, new fraud warnings and special offers direct to your inbox