How to Avoid Scam Trading Alert Services
By Bruno Nalon · · 3 min read
Trading alerts are a real product, but the space attracts scammers because it sells hope to people who want to grow their money. The good news is that most scams follow the same patterns. Learn them once, and you can check any service in a few minutes before it gets your card number - or your broker login.
The most common trading alert scams
Fake track records show only winning trades or doctored screenshots. Pump-and-dump groups push everyone in a chat into the same small, illiquid stock so the organizers can sell to them at a higher price. "Account managers" ask you to send money or your login so they can trade for you. Impersonators copy the name and logo of a real service on social media or messaging apps and ask for payment in private.
Other variations include courses that upsell endlessly, "signals" that are just recycled public news, and services that disappear with annual subscriptions.
Red flags vs what a legitimate service looks like
| Red flag | What a legitimate service does instead |
|---|---|
| Guaranteed returns or "risk-free" trades | States plainly that trading involves risk and losses happen |
| Only winning trades shown | Publishes closed trades, losers included |
| Anonymous team or fake names | Has a real person you can identify and contact |
| Pressure: "only 3 spots left", countdown timers | Offers a free trial and lets you cancel anytime |
| Payment only in crypto, gift cards or wire transfer | Uses normal card payments with receipts |
| Asks for your broker password or to trade your account | Never needs your password; integrations use revocable access |
| Signals without max risk or reasoning | Shows the max loss, max profit and why the trade was chosen |
How to check who is behind a service
Look for a named founder or team with a public history you can verify, a company website with terms of service and a privacy policy, and a real way to contact someone. Search the service's name together with words like "scam" or "refund" and read what customers say outside the service's own channels.
If anyone offers personalized investment advice or to manage your money, check their registration: in the US, FINRA BrokerCheck and the SEC's Investment Adviser Public Disclosure site are free to search. EasyTrade is an educational signal service, not a financial adviser, and its founder, Bruno Nalon, is named on the About page.
Protect your broker account
Never give anyone your broker password, and never let a stranger trade your account or move money for you. If a service connects to your broker to send signals, it should use your broker's official access tokens, which you can revoke at any time, store them encrypted, and let you unlink the connection from your account settings.
That is how EasyTrade's Diamond integration with tastytrade works: you connect with tastytrade API credentials rather than your login password, and you can unlink whenever you want. Turn on two-factor authentication at your broker either way.
Be careful with chat groups and social media
Free groups on messaging apps and social networks are where many scams start. Be wary of strangers who message you first, groups where everyone suddenly piles into the same penny stock, and accounts that show off lavish lifestyles instead of trade details.
Real services rarely contact you first in private. If someone claims to represent a service you use, go to the official website yourself and contact support from there.
Test before you commit
Start with a free trial long enough to watch real trades open and close - options trades often last weeks, so a trial of a day or two shows you very little. Follow the signals on paper or with very small size, and record every result yourself.
Pay monthly at first, even if the annual price is cheaper. Once a service has proven itself over a few months, an annual plan makes sense.
What to do if you think you were scammed
Stop sending money immediately and change your broker and email passwords. Contact your card issuer or bank to dispute the charges, and revoke any access you gave to your broker account.
Keep screenshots and messages, and report the scam - in the US, to the SEC, FINRA or the FTC. Be especially careful afterwards: "recovery services" that promise to get your money back for an upfront fee are a common second scam.
See a real signal for yourself
Every EasyTrade signal shows the max risk, max profit, EasyScore and a step-by-step execution guide before you trade. Try it free for 30 days - no credit card required.
Frequently asked questions
Keep reading
- How to Know If a Trading Signal Is Legit
- How Accurate Are Trading Alert Services?
- Free vs. Paid Trading Alert Services: What's the Catch?
- Are Trading Signal Services Worth the Money?
- Options strategy guides