Forex Killer Review - Is Forex Killer A SCAM?

Despite the somewhat cheesy and hyped-up home page on the ForexKiller web-site, the ForexKiller software, which I review here, is definitely not a scam. Created in 2005 by Andreas Kirchberger, an independent developer and a former Deutsche Bank currency trading adviser, the ForexKiller software sold over 2000 copies in the first month(!) after being released to the general public in early 2006. The program is an automated FOREX signal generator which delivers completely on it's promises and if operated correctly will enhance and improve one's trading experience and increase the potential for generating consistent profitable trades.

Being sold exclusively through ClickBank, the Internet's leading retailer of digital products, ForexKiller, like all other ClickBank products, is guaranteed to be virus- and spyware-free. The unconditional 60-day Money-back Guarantee, backed by ClickBank's product publishing policy, turns your purchase into a Risk-Free Trial! On top of the guarantee, ForexKiller, unlike many other products sold on the internet, where the only means of getting customer support is through an online form or an email, provides a customer support phone number for customers to call with problems and questions. As a matter of fact the phone number is one of the first things a user sees on their home page. Andreas Kirchberger, the creator of ForexKiller answers emails sent to his email address and the telephone provided on his web-site works.

The claim "free software updates for life" also appears to hold true, with the last release of an updated version having been distributed in Nov 2007.

[Update: Latest version of Forex Killer is now 3.0, released on March 20, 2008]

[Update: Latest version of Forex Killer is now 3.32, released in early May 2008]

[Update: Latest version of Forex Killer is now 4.12, released on Oct 14, 2008]

Below is a test of the Forex Killer System performed on May 12. The test covers a 24 hr period (approximately), over which trades were taken every 1/2 hr, according to the ForexKiller provided signals.

The results were a profit of +670 pips. A oversimplified explanation of what this means is terms of dollars is: One pip is equal to 10 dollars if you are trading one lot of currency. Most beginner traders will usually trade mini-lots or micro lots which are, respectively, 10 times and 100 times less than 1 standard lot. In other words the above trading test would have the potential to generate you between $670 to $67 (in 24 hrs) based on your trading account settings.

More details on the test available here.

These results are definitely impressive. However...

Pay attention that I say "the potential" because you would not be able to constantly open trades every half hour for a period of 24 hours.

Why? For a number of reasons, main two being physical exhaustion and insufficient margin in your account.

What I CAN say however is:

1. The software works. Forex Killer consistently generates significantly more winning signals than losing ones, which combined with the trade setup (Take Profit levels higher than Stop/Loss levels) gives you a significant advantage over the market. If you follow the instructions and recommendations provided with the product there's nothing that can stop you from making money with it and the more you trade the better you will get at it.

2. There's a money back guarantee. Trading is not for everybody. If you're not satisfied or not comfortable with it - simply ask for your money back. So even if you don't make money with ForexKiller you won't lose any, either!

3. It is very easy to make money in Forex. Read this again: "It is very easy to make money in Forex". Now read this THREE TIMES: "...but it is very hard to keep doing it consistently". A trader's worst enemy is lack of discipline. If you apply disciplined and rigid money management to your trades (and Forex Killer helps you do exactly that!) - you will beat this obstacle. And if, on top of that, you actually take some time to learn more about Forex Trading - you will undoubtedly become a very successful Forex Trader!

Note that the below instructions are somewhat obsolete as now the Forex Killer System comes with a special MetaTrader 4 plugin which will pull the prices automatically from MetaTrader, without the needfor any manual intervention from the trader! Of course if your broker does not support MetaTrader (unlkely!) you can still use the below procedure and import the prices or enter them manualy...

The intended audience for the ForexKiller trading software are new or intermediate traders, just as the forex-killer-system.com web-site suggests.

Forex Killer works only on PC, there is no Mac version.

The software is very easy to install and operate, and it integrates nicely with popular trading platforms such as MetaTrader 4 (MT4) from MetaQuotes Corp., FXCM's Trading Station and DealBook 360 from Global Forex Trading (GFT) .

To generate the signals ForexKiller needs the closing prices for the last 10 long term and short term periods.

If your trading platform does not integrate with ForexKiller you will still be able to use FK but you will have to enter the data yourself. The 10 fields at the top of the screen allow you to enter these prices. Entering 10 numbers into a text box once a day shouldn't be too hard, though, what do you think?

Based on the data entered FK will then generate the short term and long term signals for the currency pair. "Short term" in FK terminology refers to 5 min, 15 min, 30 min and 1 hour timeframes. Long term is any timeframe which is greater than 1 hour, such as 4 hr, 1 day and 1 week timeframe periods. All of this is described in detail in the PDF Manual that comes with Forex Killer (the manual is available for download from fxsoftwaresolutions.com, the Trader Resources section, you might need to create an account to access this download, can't remember..)

As explained above Forex Killer is not tied to any particular broker so it does not provide the price data. You will get these from your client software, which will be provided to you by your broker when you open a demo or live trading account. If you don't have a preferred broker/dealer yet, it is very advisable to do some research and choose a reliable broker.

My personal favorite, as far as the client software goes is the Meta Trader 4 platform, because it combines charts and trading into one convenient and easy to use interface. A list and side-by-side comparison of all MetaTrader brokers is also available in the Trader Resources section of www.fxsoftwaresolutions.com. You will also find more technical and in-depth reviews of various Forex software (including a ForexKiller review) there.
The forexbastards.com site is another excellent source of independent and impartial reviews of Forex brokers and systems.

Once you've decided on a broker open a DEMO account, download their trading software and familirize yourself with it. Do this before(!) opening any live accounts and live trades! Remember - your dealer (broker) is more important than your trading platform.

Full instructions on how to use the system are available in the PDF manual that comes with the system (the manual is available for download from fxsoftwaresolutions.com, the Trader Resources section, you might need to create an account to access this download) where you can also find a detailed and independent review of the Forex Killer system.

The entire process is very straight forward and all it takes to generate the signals is 2 quick simple steps - click the picture for a larger view.

In Step 1 you enter the 10 last Closing price of the currency pair you wish to trade. You do this by using the Load button to import the data generated by your trading platform.

Next, in Step 2, set the time frame - make sure it matches your selected time frame for the prices you entered. In other words if you used 30 min closing prices then set this field to "30 min". Also, in the same control group set the currency symbol, e.g. EURUSD and Market (Forex).

...and you're done!

All that's left is to press the Calculate button. Forex Killer will now calculate the trade probabilities and will come up with a corresponding signal: Buy, Sell or No Trade.

The Forex Killer system will also calculate a projected target price for you (long-term and short term) as well as suggested Stop Loss and Take Profit levels. You can adjust these levels if you like.

Keep in mind that even if you get a "No Trade" it's only relevant to the selected timeframe. i.e. a No Trade on a 5 min chart does not mean that Forex Killer will not generate a buy or sell signal on the 1-hour or 30 min time frame.

When placing an order (Buy or Sell), the long term and short term signals generated by Forex Killer DON'T HAVE TO match, i.e. they don't necessarily have to be both Buy or both Sell. However it is a VERY GOOD idea, especially if your long term signal is Daily and your short term signals are 1/2 hr or 1 hr. This means that you will not be trading against the daily trend and therefore your chances of entering a winning trade increase.

DO NOT use Forex Killer to "trade the news". Wait them out, then trade. Sometimes it may even be advisable to close an existing trade before a major economic announcement. The volatile market conditions during such announcements can not possibly be predicted and accounted for by a signal generator software such as Forex Killer. When air gets choppy the pilots turn the autopilot off, take the yoke and steer the plane away - be smart, do the same and you will avoid many unnecessary "crashes".

You may use some of your favorite indicators as a filter or a confirmation for the signals generated by ForexKiller, although I personally would advise against this. My reasoning is simple: either you trust ForexKiller or you don't. Either you want the comfort and convenience of trading on autopilot or you want to do it all on your own. Either you are a seasoned Forex Trader that "don't need no signal software to tell me what to do" -- in which case you probably do not need Forex Killer -- or you are a novice or intermediate trader and in this case it is better to stick with one good system to avoid confusion, hesitation and discretionary decisions based on misinterpreted analysis of two or more systems.

Closing Open Positions. In theory, if you set up your Take Profit (T/P) and Stop Loss (S/L) levels as calculated by Forex Killer you should not be concerned with closing position as they will be closed automatically when these levels are reached. Howver I found that it may be useful to also follow the following rules:
* Close your position IF it is in profit AND FK's signal strength reduces (i.e. from 69% BUY becomes a 62% BUY).
* Close your position IF FK's signal becomes "NO TRADE" or reverses (reverses meaning that you opened e.g. a SELL position and the signal is now BUY). In these cases I would recommend closing your position for a small loss. The "NO TRADE" condition will be indicated by a Yellow no "No Trade" button in the upper right corner of you Short/Long Term signal charts (see picture at top of this section).

NOTE: The above are CONSERVATIVE rules, if you want to be more aggressive, just use the T/P and S/L signals from the software and let your trades "ride it" to the end.

1. Since we just were on the "scam" topic I want to comment on something that certain folks may find somewhat controversial at first glance - the guy in the video is not Andreas Krischberger. He is a hired actor, part of LiveFaceOnWeb's team of actors and marketing professionals and he is actually doing a pretty good job promoting the product.

While some may find it "unethical", think about this: Andreas Kirchberger is not an actor and not a native English speaker. He wants to record a short video presentation promoting his product, targeted at native English speakers. If you ask me, I think Andreas decided that he'll do what he knows best - design a forex trading software that works - and leave the marketing to the marketing professionals.

I personally don't see any crime in this. If I wanted to sell a product in China I would probably do the same. Come think of it, we see this approach every day - the guy with the Dutch accent in the ING Direct commercials is also an actor (Frederik De Groot, that's his photo up there) and not ING's CEO Michel Tilmant.

2.The Forex Killer comes with a Manual explaining how to use the software and an "Introduction to Forex" book. While the manual is very concise and easy to follow the other book is overly simple and pretty much useless and in my opinion the folks over at ForexKiller-System.com would be better off providing their users with a couple of suggestions for free (or even paid!) resources on the Intro to Forex and Forex Trading Education topic rather then adding this quickie ebook to the package.

One great resource on Forex education is the excellent "Forex Mentor" course from Peter Bain, a long time professional Forex Trader from Vancouver, BC, Canada.

3. While it is true that the system is extremely simple and user-friendly certain parts of the product description on the web-site, like "no experience necessary", should be read leniently. If you've never been behind the wheel of a vehicle you can't just jump into a car (even the smartest car in the world) and expect to start driving like a professional Formula 1 race pilot. As with all power tools, experience, is indeed very desirable. And it is something you will only gain over time. Don't let the first two successful trades cloud your judgment.

The web-site is correct in the sense that, yes, if you follow the steps in the manual, you can use the software and make some decent profit even if you have absolutely no experience in the FOREX market, support and resistance levels, stop-loss and take-profit orders, basic technical and fundamental analysis and major news events and reports (such as for example the Non-Farm Payroll report). It would be advisable however to read more on the topic of Forex trading as this will be both interesting and beneficial to you as a future Forex trader.

And of course, regardless of what the web-site says you will, at the very least, need to learn how to open a trading account with a forex broker, download and install the broker's trading platform (a.k.a. as trading software or trading station - this is the software which will allow you to enter trade orders online. It is something independent and totally different from the Forex Killer software) and familiarize yourself with that particular trading platform in order to gain some trading mechanics and basic knowledge, i.e. how to read the quotes and stats displayed by the software, where to click to open and close a trade, how to enter a stop-loss, etc. Don't worry - it is no rocket science and won't take more than a couple of hours of your time.

So to summarize - the closest we got so far to accusing ForexKiller of being a scam is the fact that the Forek Killer marketing department hired an actor to deliver a message from Andres Kirchberger and also the somewhat exaggerated claim that using ForexKiller you can start trading right away without the need for any Forex-trading education.

4. Better integration with dealer/broker trading software could have been provided, in particular getting the current closing price from the platform rather than the user having to enter it manually. In particular the MetaTrader platform, with it's exposed and well-documented API could have been integrated with ForexKiller.

If you are unsure which broker to pick - a list of all Meta Trader forex brokers is available at www.fxsoftwaresolutions.com in the Resources section.

One possible explanation for why this integration has not been done is to keep the Forex Killer system as generic as possible, with no dependence on third-party systems. The ForexKiller page claims that the software "works with any dealer, in any country" and indeed it is true. Another possible explanation is that the ForexKiller programmers put all their efforts into writing a profitable trading algorithm and slacked off on this one :)

5. Forex Killer is only available for the PC/Win32 platform. Mac, not to mention Linux are not supported.

Good question. The truth is - the only person who can answer it, is you. Think of ForexKiller as your very own, very serious and potentially very profitable home business. As with any business - there is a promise of better life-style but no guarantees of success. As with any business - there is an initial investment (time, effort and money) to be made. As with any business - the beginning is hard. As with any business - it's all in your hands!

That is the nature of business, that is why not everyone is an entrepreneur, why 90% of people work for someone else all their life, for a measly paycheck, barely enough to cover their monthly expenses.

ForexKiller is not a crystal ball which can predict every possible future currency move from now to eternity. It is a software, a very good software, designed and tested by professionals and used every day by thousands of folks, just like you and me, but it is just a piece of software.

ForexKiller IS:

* An excellent product for beginner and intermediate forex traders;
* Very easy to use;
* Provides phone support (additionally to online and e-mail support);
* A software with a proven track record of consistently generating profitable signals (some pairs and time-frames are more suitable than others)
* Both, supported and continuously improved by the developer. All improvements are available to all customers at no additional cost. The most recent example is the addition of the Forex Killer Automater (AutoFxK) plug-in for MetaTrader which turns Forex Killer into a fully automated trading robot! Released in Feb 2009, this module is available as a free bonus to all Forex Killer customers!
* offering a 60 day money back guarantee to those who are not satisfied with results.

ForexKiller IS NOT:

* A fully automated trading robot that can do all the trading without any intervention from the user. If you want that try the Forex Autopilot System.
[Feb 2009 UPDATE:] A recent MetaTrader4 addon designed to pull the predicted price levels directly from Forex Killer and plug them in to MT4 actually DOES turn Forex Killer into a fully automated robot! The add-on is available as a free download to all Forex Killer users.
* A monthly subscription service where you have to pay a monthly fee for the signals. You pay the price of the ForexKiller program once and you are buying software which you may run on your own computer, at any time, 100 times a day if you like, and analyze any currency pair and time frame and generate profitable trading signals
* ...perfect. No trading software is. That's the nature of trading - sometimes you win and sometimes you lose. The idea is to win more often and to minimize losses. And ForexKiller helps you do exactly that
* a MLM, pyramid scheme, Ponzi scheme or some other type of scam. It is a real product, which will be very helpful to you on your path to becoming a successful forex trader. But you'll still have to walk that path yourself and no software can do it for you
* A get-rich-quick scheme. If you sum up the monthly results published on the Forex Killer System web-site you will get an average of about 250 pips per month (3000 / 12 = 250):




This is a very realistic number for an automated trading system (and a dream for many human traders). A number of subscription services on the net claim that they will deliver 500, 700, even 1000 pips per month or some other exorbitant number, and that in itself is a proof that these "systems" are scams aimed at "get-rich-quick" customers.

ForexKiller is solid software with realistic performance record and the above numbers are an indication that the web-site is indeed displaying true results from actual trades, rather than trying to fix the numbers and to entice prospective clients into buying the program by exploiting human greed and impatience!

Conclusion:


Despite some minor flaws, ForexKiller is a great software, which if used correctly will deliver great results into your trading account.

The best feature of ForexKiller, in my opinion, is that it provides you with a stress-free and motivating introduction to the world of Forex trading. It makes it easier for the newbie trader to jump in the action and get a taste of Forex trading, while at the same time reducing the risk of entering a losing trade. Once you make a couple of trades in your demo account, once you see that balance grow - you'll know it's doable! You will know that it is something that you will be able to do with real money, too. This is a home-based business which provides you with direct immediate feedback and instant gratification (as well as instant punishment if you don't follow the rules of the game!) and you will be very motivated to work harder and to educate yourself to achieve better results. And with the unconditional 60 day money back guarantee you really got nothing to lose!

Think about the opportunities that Forex Trading and Forex Killer in particular open before you: you can work a few hours a day, from any place on the face of the planet, all you need is a computer and an internet connection! This truly is an incredible opportunity and my advice to you is - approach it with the respect that it deserves. Spend some time to educate yourself about trading the Forex market and you WILL be successful!