Most AI trading scams aren't clever — they just wrap old cons in new buzzwords. Here are the seven tells. Any single one should give you pause; two or more, walk.

1. Guaranteed or fixed returns

“2% a day,” “can't lose,” “guaranteed.” No legitimate trading product promises returns, because markets carry real risk of loss. This is the biggest red flag, full stop.

2. They take custody of your money

If you send funds to them or their “managed pool,” you've lost control of your capital. A legitimate tool is non-custodial — it connects to your own broker via API and never holds your money (your money, your keys).

3. A flawless track record

Perfect equity curves are trivial to fake or cherry-pick, and a real strategy has drawdowns. Screenshots prove nothing (survivorship bias).

A track record with no losing periods isn't a great strategy — it's a great lie, or a great case of curve-fitting.

4-7. The rest of the checklist

4. Total secrecy — “proprietary AI” used to dodge every question about risk or logic. 5. Urgency and hype — countdown timers, “losing your spot.” 6. Recruit-a-friend payouts — that's an MLM, not a trading tool. 7. No mention of risk — real products are legally required to, and honest ones want to.

What legit looks like

Non-custodial, honest about risk and drawdowns, transparent about what it does, no return promises. That's the bar — see trading bot vs signal service and does AI trading actually work.