High Commissions to Affiliate marketers - This can be a warning sign you could be handling a foreign exchange scam. Whenever you go to the commercial EA's website, search for the Affiliate marketers link and try to discover the payout structure for affiliate entrepreneurs. If you cannot think it is there, try searching for the EA on ClickBank or Plimus (where most commercial EA's process obligations). When the commission to affiliate marketers is extremely high (i.e., 50 plusPercent), this can be a danger signal. Why provide this type of large incentive to market the merchandise? Most likely the EA isn't any good, so there is a greater reliance upon marketing efforts (especially through affiliate marketers) to market the merchandise.
3. No Protection Mechanism - Should you purchase an industrial EA without any protection mechanism (i.e., you will find no limitations on where or the number of occasions it may be installed), this might be a foreign exchange scam. How are you aware this EA isn't unlicensed or may be deliver to free elsewhere as shareware? Most designers of quality commercial EA's may wish to safeguard their product from piracy. One method to do that's via some form of protection mechanism whenever you install the merchandise. A well known technique is to offer you permission or key, which you have to enter to be able to activate your EA. Some go to date regarding lock your EA for your specific broker account number. Should you change brokers, then you should totally reset your license.
Determining these indicators won't guarantee you won't ever purchase a foreign exchange scam EA, however it will help you separate just as much "wheat in the chaff" as you possibly can, as they say.
Regardless, when you purchase an industrial EA, don't commit any even much of your precious capital into it. Take the energy to check it first, utilizing a very conservative approach.
Begin by testing it using fake cash on a demo account. Once several several weeks of consistent (although fake) profits, are you able to test the EA on live money.
But even at this time, test drive it on the micro-lot buying and selling account, in which you risk only pennies rather than dollars.
Again, allow a time of several several weeks for testing. Once the EA makes consistent profits in your micro buying and selling account over several several weeks are you able to consider jeopardizing more capital into it (i.e., move it to some small- or standard-lot buying and selling account).
Testing an EA needs time to work and energy, but it is the only method if you won't want to lose your shirt into it.
By looking for the three symptoms of a foreign exchange scam EA, by going for a conservative method of EA testing, you safeguard your capital and can indeed locate an EA that's useful.
You never know? You may finish in the 20% of traders who make 80% from the profits!