FxBrokerReviews.org – If you look up the internet for forex trading scams, the rise in the number of trading scams may not come as a surprise to you. Forex trading is a legitimate way to make money and trade between foreign currencies, but some forex brokers, however, try to scam traders who are new to the market or have little experience.
While forex trading seems to come as an easy way to earn money, the rise in the number of forex scams is quite triggering. To prevent scams the forex market is slowly becoming regulated and has imposed several rules and restrictions.
If you are new to trading then it is very important to look out for forex brokers that are regulated and trustworthy. In order to save yourself from shady dealings, you must do thorough research and regularly check the forex scammer list before you plan to deposit a large amount of capital with the broker.
Trading can be a complicated process and dealing with scammers can all the more be frightening. Therefore, we at forex broker reviews have prepared detailed research that guides you on how to spot a forex scammer.
What is forex trading and is it safe?
Forex trading meaning is simple, it is a widespread network of buyers and sellers who, exchange and convert foreign currencies for the purpose of making a profit. It is the largest and the most active market, globally which makes it completely legitimate to trade. Most forex brokers are registered and work under regulation.
Unfortunately, frauds exist in every sphere and so in the trading market. However, this should not stop you from trading. Trading in forex is completely legit, however, you need to be careful of the forex scams in the market.
What is a forex trading scam?
Forex trading scams mean when un-regulated brokers or criminals trick people to invest in foreign trading schemes that are fraudulent and not accepted by the forex market.
These kinds of brokers often make promises that are irrelevant to the market scenario. They might promise you high returns and profits, guarantee you that there are no risks involved and even urge you to make lifetime investments. Once they receive the payment, these scammers disappear or refuse to make any contact with you. Often these brokers are not regulated by any authorized body or have an SSL- certificate that guarantees security and confidentiality to the server.
Types of forex trading scams in the market
A forex scammer may not necessarily be a broker. They may be a group of people or an individual without any knowledge of the forex market. These scammers use a lot of believable techniques that convince most novices that they are legitimate.
Here are a few types of forex trading scams to look out for:
1. Forex Pyramid Scheme
Under the forex pyramid scheme, the scammer poses itself to be a broker and takes money from the traders in the name of subscription fees. It creates investment groups and claims to offer advice on trading.
In this scam, money is earned through the subscription fees, as the trader is lured into bringing recruits to the investment group to earn more money. The more you bring the recruits, the more you will earn.
Once the scammer feels that no more traders will join further it shuts down the company and takes all the subscription fees without paying back any recruiters.
2. Signal seller forex trading scam
Signal seller scammers scam you by charging a fee for market analysis. They promise to provide information on which is the best time to buy and sell forex. Some even guarantee that the data provided by them will give you profits and fruitful outcomes.
But, once they receive the payment they disappear and do not provide any information or data related to the trade. Even though they have no knowledge of the market, it is hard to identify these scammers.
3. Fly-by-night brokers
Fly-by-night brokers are the most common type of forex trading scammers. They create an attractive and well-designed website page, which usually just has a landing page. Once you somehow, reach the website they will lure you by giving false schemes to earn lots of money.
Once you invest with them and deposit the capital amount they will either shut down the website or declare a pre-planned bankruptcy. Or in the worst-case scenario, they do not even make any announcements and keep you waiting forever.
4. Forex Robot scams
In forex robot scams, the companies assure you that their bots will do all the hard work for you and make the best trade you for. Using an algorithm they automatically buy or sell trades without any consent.
The scammers create fake robots without any knowledge of the market and make random trades that cause investors to incur losses and lose a huge amount of money. A robot trading system may seem to be appealing but, do thorough research before you plan to invest in any robot trading platform.
5. Broker scams
Forex broker scammers pretend to be reputed forex brokers and urge you to invest money with them. They trick you to invest in funds and schemes that are non-existent. These scammers often use the name and registration number of a broker that is authorized.
They even create websites that are identical to the original broker, to completely blind the trader. If you ever come across such a website make sure to check the FCA register and the contact details if mentioned.
6. Fake forex funds
Fake forex funds are another common type of forex trading scam. Under this, the scammers offer you schemes and funds that will give you high returns and guaranteed profits. These funds might seem to be very attractive but are nonexistent. Initially, they ask for a small investment and pay the promised returns, once the traders are convinced they start scamming them.
They even urge you to bring your friends and families to invest to earn more money. Once the trader invests in these funds for higher amounts the scammer disappears and cuts all ties.
List of forex scammers in 2022
The forex scammer list is regularly updated to aware the traders about the most recent forex trading scammers in the market. If you are a beginner then you should keep checking the list and beware of the frauds.
Forex broker reviews have below provided a list of all the recent forex scammers in 2022. Take a look at the chart
- 770 Capital
Scamming Technique
They used a non-existent regulator to scam traders. It came into the news in 2021.
Should you consider them?
We advise you not to invest as they fall under the pyramid forex scam.
- Axes
Scamming Technique
They claimed to be on the list of UK-regulated brokers and promised of high profitable trades.
Should you consider them?
No, we do not advise you to deposit your money with them.
- Adamant Finance
Scamming Technique
They do not have the financial obligations that allow a broker to trade.
Should you consider them?
Organisation with no returns.
- 4XP
Scamming Technique
The deposits were frozen and trades were not allowed to withdraw.
Should you consider them?
The organization falls under broker scams and is very risky.
- IFS Markets
Scamming Technique
The company operates illegally and without a proper financial regulatory license.
Should you consider them?
We strictly forbid you to invest any amount in the company. It is a complete scam.
Apart from these popular scammers in the market, you also need to be careful of the following, check out the forex scammer list below
- 24 Fx
- AlfaTrade
- Boston Merchant Financial
- Forex Optimum
- Miki Forex
- NBH Markets
- Price Markets
- Stratton Markets
- AGM Markets
- Divisa Capital Group
Guidelines on how to spot a forex scammer?
Go through the guidelines below that will help you identify a forex trading scam in case you come across one:
- Guarantee of high returns and profits
The forex market is very volatile and therefore nothing in the trading business comes with a guarantee. There is always a risk factor when you trade, and this is proof that the trade is legitimate. But, in case your broker promises you high profits, then there is a quite high chance that it is a scam.
- Provides no regulation
There are many brokers in the trading business that works without any regulation. The law states that all trading platforms have to be regulated and registered under a recognised authority. If you find a broker without any details of regulation then probably you have spotted a forex scammer.
- Use of fake tools
Trading platforms that use tools like PAMM accounts and provide binary options are a primary suspect of being a scam. If the broker claims that using these tools will help you earn a lot of money, then you need to check if the platform is genuine or not. These tools may be very effective but can not be used to get high profits and returns.
- Social Media Ads
If there is a trading platform that uses too many ads on social media, it might be a scam. A lot of scammers use attractive images and videos to lure people into investing with them to earn a lot of money.
- Unprofessional Practices
Forex brokers do not contact you until and unless you have visited them or sent in an enquiry. If you get any phone call or message via telegram or any other app then it is 100% a forex trading scam. This method is known as cold calling. They will insist you make payments while you are on the call and tempt you with non-existent schemes and funds.
- SSL – certificate
The best way to spot a forex trading scam is to look for an SSL – certificate. It is a digital signature of the site, that assures the security and confidentiality of the connection to the server. It protects the trader’s data from getting leaked to any third-party site in case of any malware or error on the website.
If your broker denies having an SSL certificate they are probably a part of the forex scammer list.
What are some tips to avoid forex scammers?
- The best way to avoid any forex trading scam is to educate yourself. Before you invest in any trading platform do thorough research about the broker and check its ratings and reviews. You can check reviews of the best forex trading platforms on Forex Broker Reviews.
- Read through all the fine prints documents when you open an account with any trading platform.
- Do not disclose your credit card or payment details to any forex broker trading platform that you are unsure about.
- Ask the broker if they use software like MT4, MT5, LIBERTEX, QUIK, TRANSAQ, CQG, or ROX.
- Consider setting up a demo account first, once you are satisfied with the broker then you can proceed with your further trades.
- Make sure there are no complaints regarding the withdrawal of funds. If there are you should check the reviews and ask users about their experience.
What can you do if you have been scammed?
If you invested money in a trading platform that is a part of the forex scammer list and feel that you have been scammed then, there is no need to panic. We are here to help you out!
The first step is to contact your bank and ask them for assistance. If you have given any information related to your bank account or card then, the bank will block the information to prevent it from any further misuse.
Next, you should contact and report the scam to FCA and Action Fraud. They don’t promise any recovery of money but will investigate the case and try to do whatever is possible. Reporting a scam can help warn other traders also.
Conclusion
Forex trading scams have been on the rise and therefore it is very important to be careful when you choose your broker. Go through the reviews, keep an eye on the forex scammer list and always look for regulations and licenses before you invest any amount!
