Automata FX Review: Is automatafx Legit or Scam?
Welcome to the Automata FX Review. Is AutomataFX legit or scam? There is so much going on in this website. Given that there are many scams lurking around, it is only helpful to be cautious and to conduct thorough assessment before you invest your money into these programs.
Basically, Automata FX targets traders who are looking for managed account services as well as those who are looking to leverage on pre-existing trading strategies. These can either be retail traders or institutional traders.
Automata FX does not charge management fees, but it does charge performance fees which they claim are competitive.
Minimum investment to get started with AutomataFX managed account service is $5,000. But if you are an expert trader looking to leverage on their proprietary trading strategy, the minimum investment is a whooping$100,000.
Automata FX also claims that 99% of their clients are in profits. But that’s hard to believe if no proof was presented.
AutomataFX goes ahead to list some of the features which make them better than other brokers and investment funds.
If you were thinking of investing here, you need to read this AutomataFX review and think long and hard.
The main selling point for the Automata FX platform is the claim that they have implemented the famous 4X-DAT™ software.
What is 4X-DAT™ software? It is allegedly the world’s first 100% automated institutional level trading app created for the average retail trader.
4X-DAT™ software is the property of Global Profit Technologies, and the software usually goes for several thousand bucks.
But according to Automata FX, we are going to enjoy all the benefits of using this software free of charge.
Whether you are a novice trader or a strategist who is interested in creating their own trading strategy, Automata FX says that they have something for you.
The second most important selling point for Automata FX is that they are the world’s first fully automated broker and you can experience what they are offering for free.
They have some statistics on their website to show us how many hours they have invested into the project. Of course these are not very important. We are only interested in what this site can potentially do for us.
Alleged benefits of investing here
They boast of full automated trading and proven strategies. But again we have to look for some sort of proof rather than give them the benefit of doubt right away.
They also claim that they give their clients unprecedented hedging abilities and customization that will haunt other brokers. And then profits will soar like your next private jet.
The other promise that Automatafx makes is that they will not trade against you like other B-books do. There is also no re-quoting, FIFO rules or underhand tactics.
Well, it is extremely difficult to prove these marketing declarations. One has to actually test this platform to find out if indeed this brokerage and investment firm means whatever they are saying. But it is highly unlikely. I’ll let you know why.
Automata FX review: investment plans
These are called Managed Account, Independent Strategy and Institutional Trading.
For the managed account service, Automata FX requires a minimum investment of $5,000 which is on the higher side considering that most managed account services start at $3,000 mark.
Under managed accounts, Automata FX breaks it down into two more categories named Standard and Fast Track Managed accounts.
If you are going to get involved with this investment fund, you will have to go through the details of each of these products carefully because they have a fine print which can be missed very easily.
For instance, Standard package requires 5k minimum investment, and funds cannot be withdrawn for at least 90 days. Returns are reported in quarterly basis and one can allegedly earn up to 15% where a performance fee of 35% will apply.
Under Fast Track Managed Accounts, Automata FX gives investors 3 categories with varying quarterly ROIs, starting at 18%, 24% and 30%.
These accounts are known as Executive, Advanced and VIP. The minimum deposit required for each one of these is $5,000, $25,000 and $100,000 respectively.
There seem to be a unique set of conditions for each of these Automata FX managed account plans, and fees too look steep as the investment fund intends to do a profit share model of 60% 40%.
Minimum contract duration is 1 year. Automata FX also claims that they are restricting membership so that the Executive plan can only have up to 800 clients, while the Advanced and VIP plans can have 400 and 200 clients respectively.
Under each one of these investment accounts by Automata FX, there is a tab for ”viewing trading results”. Clicking on any of these tabs takes us to a page with pictures of growth curve showing how the team has been trading these accounts since June 2017.
It is important to note that these results have not been audited and verified by a third party, and hence cannot be taken as absolutely accurate.
Automata FX should be using a myfxbook account to present their trading results if they believe that they have the best traders who can grow their clients’ capital.
What I am seeing on the trading results page is something I cannot believe since it is very easy for Automata FX to manipulate those curves and fool us.
Automata FX is not regulated
They just confirmed it that they are not obligated to follow FIFO rules. Also, nowhere on their website do we find regulatory information.
The sales page is filled up with marketing information which promise good things to the investor who is willing to part with at least $5,000.
I have reviewed many of these investment funds before. Some of them like Algotechs, Earn Sure, Trusted Option Pro have proved to be scams, and this is the route that AutomataFX wants to take by skipping regulatory requirement and soliciting funds from random investors on the internet.
While returns are reasonable, Automatafx needs to work on a few areas in order to win the trust of the clients they target.
First of all, they need to prove that 99% of their clients are in profit. Secondly, they have to use a third party statement sharing service that will track the progress of their trades.
Finally, we need to see that AutomataFX is regulated. Otherwise, we will not have any confidence in them when they tell us that we should invest our money with them.
PS: Thanks for reading this Automata FX review. If you’ve heard a good or bad experience with this investment fund and broker, do not be afraid to comment below.