Good morning, sir. I would like to ask if trading using forexcopy on zulutrade or etoro is safe? Are they scams or not? Or do you have other references that are better for forexcopy? Thank you very much for your answer.
Many advertisements offer effective and efficient solutions in forex trading, including in the use of forexcopy. However, ultimately these services make the following statement:
Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine “risk” funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. No “safe” trading system has ever been devised, and no one can guarantee profits or freedom from loss. Past performance is not indicative of future results.
Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.
One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.
It turns out it's also risky. Nothing is 100% safe. In our opinion, safe trading is trading that is managed by yourself. Profits and losses are the result of your own work. Just choose a broker that suits your financial condition and the trading system used.
Thanks.
@ Denny:
Whether or not it is safe depends on the regulations obtained by the broker.
We recommend choosing a broker that has been regulated by a credible international regulatory body, namely: CFTC, NFA, FCA, FSA, FINMA, MiFID, ASIC and FMA.
A credible regulatory body is one that has been tested and is internationally recognized, and provides strict sanctions to brokers if they are found to have violated agreed-upon terms. The regulatory body is also responsible for the security of client funds.
To our knowledge, for the broker eToro UK has been regulated by the FCA UK (which is a credible regulatory body). For an in-depth review of eToro, there is a pros and cons review that can be studied here.