Forex scams list

Below there is a table that is updated in real-time. Its purpose is to warn novice traders about scam brokers who are not to be trusted.

Free forex bonuses

List of scam brokers 2021 - Identify and Avoid, forex scams list.

A broker who focuses on PAMM accounts and binary options, promising tremendous profits, is very likely to be a scammer. These are also effective tools, but they cannot be the main source of income for a successful trader. And certainly, PAMM accounts do not guarantee a high income.

List of scam brokers 2021 - identify and avoid

Unfortunately, fraud exists in any commercial sphere, and the forex market is no exception. Even in 2020 sleazy forex brokers continue to deceive unsuspecting traders, but the good news is this is no longer the trend but is rather on the decline. There are many main reasons for this change. Today, blacklists of forex scam brokers are kept current and regularly published by internet users. Our portal is no exception. We have been collecting data about scam brokers for more than 10 years and we think we know every dishonest company in the market.

Find below the 2020 up-to-date list of scam brokers as well as our explanation of some scam aspects in the international currency market.

Scammers in the forex market: who are they?

Forex scam brokers are not always represented by brokers themselves. They are most likely to be individual players without companies but who position themselves as broker companies. Often they are very experienced internet users who can fabricate false information on the site they created.

The owners of such scam sites do not have a license and are therefore not properly regulated. Sometimes they donвђ™t even have basic knowledge of the forex market. But for a novice trader who does not have an education in economics or finance, not everything is so obvious.

For example, a person may visit a beautifully designed website, see catchy promises of profit, and words or phrases like вђњspreadвђќ and вђњinstant execution of ordersвђќ. That for the novice, could add a semblance legitimacy to the dishonest website. As a result, a person signs up, makes a deposit вђ” and here is where the most interesting part begins вђ” and there is the deception by technology. Blacklists of forex scam brokers mainly include three types:

Until recently, this type of scam was the most prevalent. The idea is that a group of people (or even one person) creates a site. Often it is just a landing page that urges the public to invest and earn lots of money. This may also include PAMM accounts. The scammers donвђ™t care what they say, the main thing is to attract people and their money. As a result, they collect deposits from traders and close the site, sometimes they declare a preplanned bankruptcy, and sometimes they donвђ™t make any announcements at all.

This type of scam is more refined and requires more careful preparation, but the potential profit of the scammer is also higher. In this case, they create a full-fledged platform that duplicates the functionality of leading forex brokers. The trader does not play on the world interbank market, but with other traders registered only on their fraudulent site, or even with the platform itself. Naturally, forex bucket shops create impossible conditions so that the site itself remains in the black while traders constantly lose their money.

Perhaps this is the most famous type of scam that is used everywhere, not only in the foreign exchange market. This type of scam is not about forex brokers at all. It is about the company positioning itself as a broker but, in fact, it only collects deposits from traders, often without even faking activity on the interbank market. They just keep issuing empty promises and slogans. Today, this type of scam is less common than others.

How to identify forex trading scams?

In the early 2000s, when the forex market became accessible to everyone and was just reaching the peak of its popularity, it was not easy to tell a scam broker from a legitimate broker in the interbank market, especially if the novice trader was just starting out. But today, in the era of total globalization and informatization, general information is easy to check on the internet in a matter of minutes. Today, it has become much easier to protect against fraudulent schemes of blacklisted forex brokers. The easiest way is to study our site because we have already saved you time and selected both reliable brokers and scammers among all companies. All you have to do is simply check our ratings lists.

But if you need more details, weвђ™ll tell you about the main practices by scammers. Here are some:

They promise high profits

Such promises are a sure sign that the forex broker is a scam artist because no legitimate broker can guarantee high profit to the trader. Moreover, according to statistics, only 11-25% of novice brokers eventually become professional players in the foreign exchange market and begin to make good money.

They say there are no risks

This is also a clear sign of a scam because the success of the trader does not depend on the broker. The key role is played by the strategy of the trader, that is, how he diversifies the risks. For example, a legitimate broker may share a deposit between several currency pairs or use auto trading. It is impossible to completely eliminate the risk of forex.

No regulation

By law, the activities of legitimate forex brokers must be regulated by an authorized body вђ” either a public or private licensing company. You can find the information about regulators on the brokerвђ™s website and check it on the website of the regulator. This is open information and the validity of the license can be checked in a matter of minutes. Naturally, the activities of blacklisted companies are not regulated.

Unprofessional practices

This can include many things, such as cold calling. If you are contacted by telephone, telegram or in any other way by a forex broker that you have never heard of, and he offers you cooperation, you know for certain that this is a scammer 100%. Also, scammers always insist on you making a payment вђњhere and nowвђќ. They speak about the high qualifications of their managerвђ™s (PAMM accounts), but they can only confirm their profitability with excel tables.

Dubious strategies

Forex brokers on the blacklist often use little-known or generally unknown trading terminals (that is, something other than these reputable terminals: MT5, MT4, LIBERTEX, QUIK, TRANSAQ, CQG, or ROX). In reality, in 2020, the broker does not need to create a terminal because using either one of the above is simple and reliable for both the trader and the broker.

Dubious tools

Fake ratings

Many forex brokers that are on blacklists like pointing out their top positions in some dubious ratings poll. But they show only ratings present on their site, or on a third-party resource that actually belongs to the same person and has no weight in the forex market.

SSL-certificate

This detail is critical but many traders do not pay attention to it. An SSL certificate is a digital signature of the site, which guarantees the security and confidentiality of the connection to the server. That is, when on this website the chance of getting malware or spyware that will transfer your data to third parties is minimal.

Blacklist of forex scam brokers 2020

Below there is a table that is updated in real-time. Its purpose is to warn novice traders about scam brokers who are not to be trusted.

You need this blacklist because, despite the confirmed scam schemes, some forex bucket shops and pyramid schemes continue to function successfully.

In addition to the blacklist of fraudulent forex brokers, we provide detailed information about each of these companies. This is necessary so that the trader can inform his opinion based on the results of the promised analysis. By clicking on the link next to the logo of the scam broker, you will find the terms and conditions under which this company worked or continues to work. Check out what feedback he has; and if he has already stopped working; then when, and for what reason.

Why forex brokers are regulated and why do we need to know?

We have already briefly mentioned the regulation of forex brokers. Here are more details about it. The global (interbank) foreign exchange market has a legislative base. This legislative framework defines a special category of regulatory companies. They are internationally licensed companies operating in the global currency and securities market. Their task is to monitor and analyze other market players for compliance with legal standards and financial security requirements. Simply put, the regulator checks whether the broker is legally operating in the forex market and whether he is complying with the terms and conditions of the regulator. If they are not, then they may be fraudulent.

Naturally, the vast majority of forex brokers that are on the blacklist cannot have a regulator because their activity is illegal. On the other hand, the work of forex bucket shops and pyramid schemes often has legitimate reasons, but the regulator will easily understand that these are fraudulent schemes and he simply will not license such a companyвђ™s activity. Thus, the broker's regulation is an important guarantee for the trader because it guarantees that this broker is honest and reliable; and he places orders on the interbank market and fulfills payment obligations.

Each regulator has its methods and tools for checking forex brokers. In 2020, the brokers must meet several strict requirements. They are supposed to have: full transparency of financial transactions; a certain amount of money in their account; a completed set of documents required by law; and an official site that meets all technical safety requirements. Moreover, from the point of view of jurisdiction, the regulator can be local (operates within the country) or international (operates globally).

Here are the main international forex regulators:

Belize international financial services commission;

Cyprus securities and exchange commission;

Mauritius financial services commission;

UK financial conduct authority;

South africa financial sector conduct authority;

Securities commission of the bahamas.

Scam brokers from the black list can deceive traders for the very reason that their activities are not regulated by anyone!

Is forex itself a scam? Test the reliability of your forex broker

Based on many years of experience, hundreds of feedbacks, and an analysis of the 2020 blacklist of forex brokers, specialists from the traders union prepared a simple test that you are invited to take. It allows you to determine whether you can trust the forex broker you have chosen. The test consists of ten questions, and it will take you just a few minutes to complete it. In return, you will get unbiased information on the reliability of your broker.

Does your brokerвђ™s official website have an SSL certificate?

Does your broker use one of the following terminals: MT5, MT4, LIBERTEX, QUIK, TRANSAQ, CQG, or ROX?

Is your broker regulated by one of the following organizations: IFSC, cysec, FSC, FCA, FCSA, SCB?

Does your broker have more than 20 trading tools?

Does chat support respond quickly?

Is your forex broker widely known; and if so, is he included among our ratings for TOP forex brokers?

Did you read feedbacks on this broker; and if so, are they mainly positive?

Does the broker offer additional services (for example, auto trading)?

Does your broker avoid making cold calls to you requesting deposits or participation?

Can you make a deposit using standard methods вђ” visa/mastercard, wire transfer, paypal, skrill?

How to interpret test results:

If you answered вђњyesвђќ to all 10 questions, then this is a reliable broker, and you can work with him.

If you got 7вђ“9 вђњyesвђќ answers, then the broker is most likely reliable, but we recommend reading additional information about him.

If you have only 5-6 вђњyesвђќ answers, then we recommend that you study the feedbacks on this broker in detail as it is doubtful that he is reliable.

If you have less than 5 вђњyesвђќ answers, then traders union does not recommend working with this broker because it is very likely that he is a scammer.

In addition to the blacklist of forex scam brokers, the traders union is constantly updating the independent rating of reliable brokers, which is compiled based on trading feedback. Follow this link to learn more about top brokers and get the opportunity to work with reliable, time-proven companies that you can trust.

List of three recent forex trading scammers

Since the blacklist of forex brokers is updated frequently, it is important to regularly monitor all updates. And if you see a company you work within the list, it is recommended that you immediately withdraw all your funds to avoid the risk of losing them. Below you will find three forex brokers that appear on the latest 2020 blacklist.

Current status of a company

The broker stopped fulfilling its obligations to traders. Deposits are frozen and impossible to withdraw.

We do not recommend working with them. Most likely they are scammers.

The broker operated under the license of a non-existent regulator; their registration is not confirmed.

We do not recommend working with them. Most likely they are a forex bucket shop or pyramid schemes

They donвђ™t have a regulator; their user agreement does not contain the financial obligations required before trading.

We do not recommend working with them. The feedback says they are a scam organization.

Note that a company may get on the blacklist of forex scam brokers due to various reasons, such as problems with the license or site; lack of transparency or dubious conduct; non-existent regulator, proof of defrauding traders.

Feedback on traders is the main criteria used to form the TOP of our ratings, and brokers that are not included in the TOP-20 should raise doubts and be carefully checked. In addition to scammers, there are brokers that provide low-quality services, which is why the traderвђ™s success and potential do not live up to his expectations.

Feedbacks of traders unionвђ™s participants on scam brokers

The traders union has thousands of traders around the world who regularly share relevant information. It is very beneficial. Often honest feedback can save hundreds of novice market players from investing in fraudulent schemes and losing their deposit. This is an avalanche-like process вђ” when a scammer loses his status and there is no longer an influx of new traders, he will inevitably curtail his activity.

Feedbacks are written only by traders who have already worked with specific brokers. Therefore, all negative feedbacks are unbiased, they include descriptions of real cases of interaction and fraud on the part of brokers. The traders union analysts additionally check the information provided in the feedback, so that we do not have biased or false feedbacks as those are immediately deleted.

The value of feedback on forex brokers is determined by the fact that, unlike statistical data and anonymized rating tables, it is live feedback from real people who share their personal experience with you. The feedbacks on independent websites are always valued above any other indicator, and experienced traders make their choice based on them. In the vast majority of cases, this eliminates the possibility of running into a scammer.

Reviews

In order to leave your feedback on the broker's work, you do not have to be a traders union client! Anyone can do it! You just need to register on the website and post your review.

At first, circle markets allowed me to withdraw some small amount of money two times, and then the money just hung in the air. Support told me they were solving the issue, and it would be solved within 2 weeks. And then it was a total disaster. Trades were no longer closed on TP even when the price went 5-10 pips below take profit on EUR/USD sell. And every SL was executed strictly at the indicated price. For the time being, I have no slippage problem, as I trade here no more and will hardly ever come back. Though it would be great to withdraw the remaining money.

Circle markets seems to be nothing but a forex trading scams. It's absolutely impossible to contact their office. They're kind of bottled up, I read about them on the web and decided not to sign up.

I got deceived here. Atiora agents would do anything for traders not to get their money back. They don't care about the law or undertaken obligations. I tried to withdraw my $200 profit, they declined it and sent me a list of violated agreement clauses. But I've never had such problems before. They change the conditions as they wish!

I've been an alfa-forex client for about 4 months. I've lost more than $1,000, but decided to go on and deposit $3,000 more to keep trading. The money was credited instantly, I won back my losses, but as soon as I ordered withdrawal of the whole amount, my request was declined with no reason at all. Later they told me there were no trading orders on my account, so I couldn't prove my profits. I have all the videos! Screenshots! Run away from them not to get in trouble!

It's been more than 24 hours since I sent the money to my trading account. The sum was deducted from the credit card, but was never credited to the trading account. Customer care began to ignore my queries. Quite a strange set of circumstances, to my mind.

The traders unionвђ™s expert opinion - how to avoid becoming a victim of a forex scam

Previously, the trader had to carefully analyze the top market players by key parameters, and even then, there were no guarantees. Today it is possible to quickly check all indicators: the SSL-certificate of the site; registration number of the regulator; and trader feedbacks on independent sites. Also, many trading associations offer blacklists of forex brokers, which also help to avoid mistakes.

The author of this article about forex scam brokers

In 2008, he graduated from the london institute of banking and finance, department of finance, investment, and risk;

In 2009, he became the youngest trader-analyst of global invest;

In 2010, he became an independent analyst in TD ameritrade;

In 2011, he defended his ph.D. Thesis on economics in the university of california-berkeley;

From 2012, to 2018 he worked in different american and international broker companies;

From 2018, he has worked with traders union as an independent expert and trader as well as with other tradersвђ™ associations as a freelancer;

He has 12-years of experience of continuous trading in the forex currency market.

Faqs regarding forex fraud

What is a blacklist of forex scam brokers?

This is an anti-rating system for the forex market, which includes brokers whose activities look like fraudulent schemes: forex bucket shops, fly-by-night websites, or pyramid schemes.

What are the risks when working with brokers from blacklists?

The activity of scammers is not regulated by anyone, so they can perform any actions with your transactions - interrupt, freeze and reset them. Scammers often do not pay at all or do not return deposits.

How not to get deceived by a scammer?

Compare the broker against the criteria given in this article; read feedback about it. The blacklist of forex brokers will provide you with an up-to-date list of companies that are not recommended for cooperation.

Blacklisted brokers are unreliable; where do I find reliable ones?

For this, the traders union has an independent rating of forex brokers based on real tradersвђ™ feedback. This rating is dynamically updated and provides up-to-date unbiased information about companies that are profitable and reliable to work with.

Risk disclosure:

Information on the tradersunion.Com website is for informational purposes only and does not constitute any motive or suggestion to visitors to invest money. Moreover, we hereby warn you that trading on the forex and CFD markets is always a high risk. According to the statistics, 75-89% of customers lose the funds invested and only 11-25% of traders earn a profit.

That is why you should only invest money that you are prepared вђ” or can afford вђ” to lose at such high risks. Tradersunion.Com does not provide any financial services, including investment or financial advisory services. Also, the traders union is not a broker and does not get money for trading in the forex or CFD markets. Our website only provides information on brokers and the markets and helps its users to select the best brokerage company based on detailed information and objective analysis of brokers.

Disclaimer:

Tradersunion.Com assumes no responsibility for the consequences of the clientвђ™s trade decisions or for the possible loss of his capital caused by the use of this site or the information on it. The forex trading, as well as CFD or cryptocurrencies trading, are not for everyone and forex trading is a very risky business. Before investing, please assess your competence to trade in the forex markets and make sure you understand and appreciate all the risks, particularly in terms of leveraged trading. The information on this site is not intended for distribution, dissemination, or use by any person in any country or jurisdiction where such distribution, dissemination, or use would violate domestic legislation or regulation.

Any payments made by tradersunion.Com to the users of our website are only as a bonus for activity on the website, in the form of advertising income deduction; and such payment cannot:

В· be subject to any claim by our users or third parties;

В· obligate tradersunion.Com to act or refrain from any act;

В· expose or subject tradersunion.Com to any legal or other dispute; or

В· be considered as part of the services provided by the brokers.

Disclosure of advertisers and revenues:

Is forex trading scam? Avoid forex broker scam 2021 (list)

Forex market traded gigantic measure of cash skimming around in an unregulated spot market that trades immediately, over the counter, with no responsibility, forex scams offer deceitful administrators the draw of procuring fortunes in restricted measures of time. While some previously well-known scams have stopped—on account of genuine implementation activities by the ware prospects trading commission (CFTC) and the 1982 arrangement of the self-administrative public fates affiliation (NFA)— some old scams wait, and new ones continue popping up 2.

Is forex trading for real?

Some time ago: the point-spread scam

An old point-spread forex scam depended on PC control of bid-ask spreads. The point spread between the bid and ask fundamentally mirrors the commission of a to and fro exchange handled through an intermediary. These spreads commonly vary between currency pairs. The scam happens when those point spreads vary broadly among agents.

KEY TAKEAWAYS

Numerous scams in the forex market are not, at this point as unavoidable because of more tight guidelines, yet a few issues actually exist.

One obscure practice is when forex agents offer wide bid-ask spreads on certain currency pairs, making it more hard to acquire benefits on trades.

Be cautious about any seaward, unregulated specialist.

People and organizations that market frameworks—like sign sellers or robot trading—in some cases sell items that are not tried and don’t yield productive outcomes.

In the event that the forex dealer is intermixing assets or restricting client. This scam has calmed down throughout the most recent 10 years, however be cautious about any seaward retail handles that are not controlled by the CFTC, NFA, or their country of root.

These propensities actually exist, and it’s very simple for firms to get together and vanish with the cash when faced with activities. Many saw a prison cell for these PC controls. In any case, most of violators have verifiably been US based organizations, not the seaward ones.

Fake forex brokers list

The sign seller scam

A mainstream current scam is the sign seller. Signal sellers are retail firms, pooled resource directors, overseen account organizations, or individual traders that offer a framework—for an every day, week by week, or month to month expense—that professes to distinguish good occasions to buy or sell a currency pair dependent on proficient suggestions that will make anybody well off.

In individuals who vouch for how extraordinary a trader and companion the individual is, and the immense abundance that this individual has procured for them. All the clueless trader needs to do is hand over X measure of dollars for the benefit of trade suggestions.

A considerable lot of sign seller scammers essentially gather cash from a specific number of traders and vanish. Some will suggest a decent trade every so often, to permit the sign cash to sustain.

This new scam is gradually turning into a more extensive issue. In spite of the fact that there are signal sellers who are straightforward and perform trade capacities as proposed, it pays to be doubtful.

Is forex trading legal?

“robot” scamming in the present market

Assessment of a forex robot must incorporate the testing of a trading framework’s boundaries and enhancement codes. In the event that the boundaries and enhancement codes are invalid, the framework will create irregular buy and sell signals.

This will make clueless traders do just bet. Albeit tried frameworks exist available, potential forex traders ought to do some exploration prior to placing cash into one of these methodologies.

Different elements to consider

Generally, many trading frameworks have been very exorbitant, up to $5,000 or more. This can be seen as a scam in itself. No trader should pay in excess of a couple hundred dollars for an appropriate framework today. Be particularly cautious about framework sellers who offer projects at extravagant costs supported by an assurance of remarkable outcomes. All things considered, search for genuine sellers whose frameworks have been appropriately tried to possibly procure pay.

Another steady issue is the blending of assets. Without a record of isolated records, people can’t follow the specific exhibition of their ventures.

This makes it simpler for retail firms to utilize a financial specialist’s cash to pay extreme compensations; buy houses, vehicles, and planes or simply vanish with the assets. Segment 4D of the product fates modernization demonstration of 2000 tended to the issue of asset isolation; what happens in different countries is a different issue.

Blacklisted forex brokers list

A significant factor to consistently consider while picking a representative or a trading framework is to be suspicious of guarantees or special material that ensures an elevated level of execution.

Different scams and cautioning signs exist when dealers won’t permit the withdrawal of monies from financial specialist accounts, or when issues exist inside the trading stage. For instance, would you be able to enter or leave a trade during unpredictable market activity after a monetary declaration? On the off chance that you can’t pull out cash, notice signs should streak. In the event that the trading stage doesn’t work to your liquidity desires, cautioning signs should streak once more.

The primary concern

Direct due industriousness on the forex merchant you’re thinking about by heading off to the foundation alliance status data center (essential), made by the NFA.

Expert forex lawyers about forex trading scams

Numerous progressions have driven out the hoodlums and the old scams and legitimized the framework for the numerous great firms. In any case, consistently be careful about new forex scams; the enticement and charm of colossal benefits will continually bring new and more complex scammers to this market.

Trade forex and cfds on stock files, products, stocks, metals and energies with an authorized and controlled representative. For all customers who open their first genuine record, XM offers a 15% invite reward up to $500 to test the XM items and administrations with no underlying store required. Study how you can trade more than 1000 instruments on the XM MT4 and MT5 stages from your PC and macintosh, or from an assortment of cell phones.

Forex broker scam list

List of forex scam brokers

Official website: click to go website

Out of business:

Avoid paying the origin clients fund:

Avoid supporting well and transparent for traders:

Avoid paying the profit of traders and removes them:

Scam level: %

Forex scam brokers

Trading in the forex market has its complexities and challenges. One of the difficulties is choosing a proper forex broker and working with it. In the currency market, there are a number of unprofessional and problematic brokers using subtle and smart ways waiting for achieving traders' capital dishonestly.

What kinds of brokers in pipsafe are known as scam? We, as a forex rebates server, will not cooperate with brokers which are already known as a scam. And also we will stop our cooperation with any brokers which cause problems for traders and we, as a representative, will put them on the blacklist, so traders can stay away from these brokers and avoid trading with them. Therefore, follow our scam broker list.

Forex brokers’ scams, which are on our blacklist, include the following items:

1-forex brokers which have already recognized as scam
2-those brokers which pipsafe announce as scam and have a lot of problems
you must avoid these scam brokers and forget them. Otherwise, you will face a real and significant challenge. We suggest using our trusted brokers because we always keep in touch with other brokers and we can understand any problems like decreasing their quality.

The problems that forex brokers can provide for traders:

Avoid paying the original clients’ funds

Avoid supporting well for traders

Avoid paying the profit and removes them

Changing the price of currencies and use artificial prices

Expanding unusual and too much of spread to limit the traders and their failures.

Select a good forex broker

Every year a lot of new forex brokers come to this world, and they add to this forex lists. Choosing a reliable FX broker along with an excellent facility among all those brokers is a little hard, and it needs an ultimate guide.

Pipsafe will help you, in this case, to avoid you being in fraud forex brokers and also help you not to be insignificant problems. Furthermore, pipsafe helps you to select an excellent and reliable broker. We are as a provider of forex cashback service due to having a close, continuous relation and contacts with other forex brokers which received their representative. What is more, we will analyze them carefully, and you can have the results and know more about it on our website.

Some important points about the regulation of various forex brokers

There are lots of regulatory and financial institutions around the world, which are monitoring the activities of forex brokers so that they have transparent and dynamic activities.

The most popular and prominent regulatory agencies on forex brokers

On the whole, having a valid regulation is essential for forex brokers who show at least condition for their activities in the global area, but there is no particular reason for trusting any brokers.

What is rebate?

When you as a forex trader ,open an forex account via cashbackforex website like pipsafe, the forex brokerage pays pipsafe some part of spread for any trade you make as reward for referring a forex customer to them, than pipsafe share the most of this revenue with you.

Pipsafe score

We are based on various factors grading the brokers credit such as votes of public and votes of our experts. Also we check many things such as the establishment and background of brokers and types of regulations they hold. Grading the quality of the brokers, we will consider some facts like, quality of service, parameter of the quality of a brokers, her/his kindness to the customer and give score to the brokers between 0 and 100 which will be given by our company called pipsafe score. Select the brokers with high scores greatly respected by our customers choice and we are confident that we will always try to update those brokers.

Forex scams

Top 7 forex scams to avoid today

As forex markets promise to give you an incredible return on investment, they became trendy in the last few years. However, often forex traders don’t have a great understanding of how forex markets work and what a forex broker does exactly, which leaves the latter a lot of room to scam the trader. Whether it is about proposals on instagram or simply fake investment advice, beware.

It’s a complicated industry, and even experienced people fall victim to intricate trading schemes. There are quite a few variations of the forex fraud. Let’s take a look at a few of them. Feel free to add names of questionable forex platforms in the comments section, at the bottom of the article.

Forex trading strategies – scam 1: the whole package

According to the specialists at investorguide.Com, this might come your way by crooks “creating false customer accounts for the purpose of generating commissions, selling software that is supposed to garner large profits for the customer, false claims of customers making huge money, the theft of a customer’s account and phony marketing.

Forex scams draw customers in with sophisticated advertisements placed in the newspaper, heard on the radio, or seen on internet websites.

Forex trading strategies – scam 2: computer manipulation of bid/ask spreads

How does this scam work? According to dailyforex.Com (a great team of analysts and researchers who watch the market throughout the day to provide unique perspectives and helpful analysis on forex trading), “the point spread between the bid and ask basically reflects the commission of a back and forth transaction processed through a broker. The point spreads differ widely among brokers and differ between currency pairs.

Since brokers don’t usually offer the normal two- to three-point spread in the EUR/USD, for example, but go for spreads of seven pips or more, any potential gains resulting from a good investment were eaten away by commissions. These commissions found themselves in the broker’s pocket.

Forex strategies – scam 3: commingling funds

In law, commingling is a breach of trust in which a fiduciary mixes funds that he holds in the care of a client with his own funds, making it difficult to determine which funds belong to the fiduciary and which belong to the client.

When it comes to the forex scam, the same team at dailyforex.Com explains: “commingling funds gives forex brokers the opportunity to pocket much of an investor’s money without the client ever noticing any discrepancy. The broker benefits financially during the trading and eventually disappears with a customer’s money.”

“if a forex trader looks carefully and states vigilant he/she can pick up are certain warning signs which can alert him/her when all is not on the straight and narrow. If a broker won’t allow the withdrawal of monies from investor accounts or if problems exist within the trading station, the trader should take immediate notice.

Additionally, guarantees of high performance levels-some much higher than those offered by other forex brokers-should be viewed with considerable skepticism.”

Forex strategies – scam 4: robots/automated systems

Surprised? Don’t be. This is an increasing scam especially with the advancement of the technology. Questionable brokers sell automatic trading systems which claim to generate automatic trades even when the trader is sleeping.

Some shady companies sell their special “packages” for thousands of dollars, only to find out that some of these you can find on the internet for free.

“most of these robots have not been tested by an independent source for formal review. Their trading system’s parameters and optimization codes are usually invalid and at the end of the day, the system generates totally random buy and sell signals”, concludes dailyforex.Com.

Forex strategies – scam 5: fake investments funds

All kinds of HYIP funds have been notoriously showing up everywhere. Simply because they work; for the scammers! The high yield investment program funds ‘guarantee’ you a great level of return for temporary use of your money in their forex fund.

The concept that sells this ponzi scheme is that the investors of yesterday get paid back by the investors of tomorrow. How the scam works is that once the fund runs out of prospects, it closes down and takes whatever money it has with it.

Must read: online college course scam

Forex strategies – scam 6: signal seller membership

Just like the robots, certain ‘signal sellers’ claim to sell you information on which trades you should make in order to get rich. The trick is – they charge a weekly or monthly fee for their service (‘signals’).

Little do you know that not only you are lose your money, but they do not even offer you anything that will help improve your trading!

Forex on instagram – scam 7: fake accounts

With the advancement of technology, there are many well-run online scams on social media when it comes to forex. Some have over a thousand ‘followers’ losing money as the fraud is advertised as a get rich quick scheme.

People are signed up to a trading platform through so-called ‘companies’ and are asked to deposit their hard-earned money to deposit $400 (or EURO). Ultimately, they lose it all through investment advice from kids who earn a kickback when clients give money to the platform used to sign up.

These questionable forex platforms have recruited and paid multiple young adults from ages 18-21 to promote their scheme online. They get paid for luring new people into the system. They also use well known social media influencers to promote them and tell lies about the service.

How to avoid the forex scams:

There are many red flags you should be aware of. The first one would be when you are guaranteed a profit. There are no guarantee profits in forex. Use your computer and search reviews featuring the broker, or the system, or the signal seller.

Make sure the testimonials are genuine and do not come from their own websites. Check all the forex forums and google the name of the broker followed by the word ‘scam’.

Check their website very carefully. If they don’t have a legitimate contact page with phone numbers and emails, that’s another red flag.

Last but not least, keep in mind that there is no ‘miracle’ software that will figure out the forex market for you. If anybody would own that, why would they sell it?

How to report **the forex strategies scams:**

Make your family and friends aware of this scam by sharing it on social media using the buttons provided. You can also officially report the scammers to the federal trade commission using the link below:

How to protect yourself more:

If you want to be the first to find out the most notorious scams every week, feel free to subscribe to the scam detector newsletter here. You’ll receive periodical emails and we promise not to spam. Last but not least, use the comments section below to expose other scammers.

Verify a website below

Are you just about to make a purchase online? See if the website is legit with our validator:

Vldtr ®

Forex scams

We found 24 online brokers that are appropriate for trading forex.

How to avoid forex trading scams

Are you interested in forex trading and want to educate yourself more about forex scams and investment fraud, or just browsing the internet reading those spectacular stories about successful forex traders?

The best way to begin your journey is by exploring this guide on different types of forex fraud and what should you consider to prevent being scammed.

It is widely known the forex market is the largest financial market in the whole world?

Not only does the forex market allow investors and traders to trade with each other.
With modern markets available all over the world traders and investors to trade on international markets 24 hours a day, 5 days a week. When one market closes somewhere else in the world another one will be open.

There has never been a simpler and easier time to trade the international forex markets.
With just a few clicks in your online brokerage account you could be investing and trading on the direction of hundreds of currencies around the world.

However, while the forex trading gains seem profitable, it’s not considered simple and easy.

Having a good trading understanding, a good funded account and an understanding of risk management are the most important pillars to determine a good trader.

Sadly you have to be aware that some may try to scam money from you.
Forex fraud will continue its actions for as long as the forex market lasts.
As techniques are progressing and developing, scammers are always present, trying to take your money from you. But is there any good solution to this huge issue?

Once you master the basics of the markets, you are no longer a simple individual to target.

Scammers will usually try to attract you by over promising, using sentences like this this is a very good investment opportunity you will be rich or look at my lamborghini I brought from trading as a way of attracting you to part with your money.

Scammers will try to use your optimism and fears and make you exciting offers. If it is too good to be true it probably is as the saying goes.

How to spot forex scammers?

There are a tell tale signs of a forex scammer. Is a forex broker offers huge profits with little investment and little or no financial risk you should be wary of trading with the brokerage.

There is no way a professional firm of traders would be able to act in such a manner and keep their regulation.

Some of these offers may sound very eye-catching, especially to beginners who have just begun to trade.

Here a few simple steps to follow in order to avoid fraud:

Stay safe and don’t run after individuals who offer 100% guarantee.

Be aware of softwares that claims quick cash for with no risk.

Don’t install any random apps that claim to make you rich overnight.

Reputable forex brokers will able be able to prove regulation and their reputation.

Contact authorities and ask for a list of regulated safe brokers.

Forex scams to avoid?

The signal seller scam

The most popular forex scam in the industry is the signal seller scam.

Signal sellers are made up of investment firms and individual investors that offer a system for a fee or commission.

Signal sellers will claim to identify best times to buy or sell a currency pair.
You will hear claims that they could make anyone rich.
They use testimonials from people who will tell you how great a trader the person is. You will hear stories about how much they have made, giving you the opinion it could also be you.

Beware of forex robot scams

A forex robot is a trading program that enter and exit trades automatically when certain signal criteria are met based on the programs algorithm.

Looking online for forex robot scams may help prevent some of the well known scam artists.

Not every forex robot is a scam. Some forex robots are reputable and have good feedback from users.

The point-spread scam

The point-spread scam based on computer manipulation of spreads.
The spread between the bid and ask is essentially the commission of a transaction. Point spreads are processed through a forex brokers like the ones listed further in this broker guide.

Generally if the point spreads are dramatically different from other brokers there may be something suspicious with that broker.

Brokers usually do not offer the normal two to three points tool, but spreads of seven pips or more.

Based on market charts a pip is a small price move between exchange rates.
Major currency pairs price values are to four decimal places. A minor pip change is to the last decimal point.

Why you should avoid trading scams

Any beginner who trades without educating themselves is essentially playing against the whole market which has vast experience and resource.
You have to give yourself every chance and have a good understanding of what you are doing or it is highly likely you will lose your investment.

Forex scams bottom line

The best way to prevent investment scams is to take your time.

Make sure to assess all the pros and cons of the forex brokers you would like to work with first before you start investing.
Finding a trustworthy and reputable broker is not always easy but when you are beginning to trade.

You should stay away from any broker that you are unsure of and trade with another broker.

Read broker reviews and comparisons like the ones on this website. We have spent countless hours researching brokers, aiming to give traders all the information they need to find a reputable broker.

By following these simple but proven tips you will be able to reduce the chances of being scammed by forex trading brokers.

Forex brokers you can trust guide

We've collected thousands of datapoints and written a guide to help you find the best forex scams for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best forex scams below. You can go straight to the broker list here.

Reputable forex brokers you can trust checklist

There are a number of important factors to consider when picking an online forex trading brokerage.

Check your forex broker you can trust has a history of at least 2 years.

Check your forex broker you can trust has a reasonable sized customer support of at least 15.

Does the forex broker you can trust fall under regulation from a jurisdiction that can hold a broker responsible for its misgivings; or at best play an arbitration role in case of bigger disputes.

Check your forex broker you can trust has the ability to get deposits and withdrawals processed within 2 to 3 days. This is important when withdrawing funds.

Does your forex broker you can trust have an international presence in multiple countries. This includes local seminar presentations and training.

Make sure your forex broker you can trust can hire people from various locations in the world who can better communicate in your local language.

Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.

Our brokerage comparison table below allows you to compare the below features for brokers offering forex brokers.

We compare these features to make it easier for you to make a more informed choice.

Minimum deposit to open an account.

Available funding methods for the below forex brokers.

What you are able to trade with each brokerage.

Trading platforms offered by these brokers.

Spread type (if applicable) for each brokerage.

Customer support levels offered.

We show if each brokerage offers micro, standard, VIP and islamic accounts.

Best 15 forex brokers of 2021 compared

Here are the best forex brokers.

Compare forex brokers min deposits, regulation, headquarters, benefits, funding methods and fees side by side.

All brokers below are forex brokers. Learn more about what they offer below.

You can scroll left and right on the comparison table below to see more forex brokers that accept forex clients

List of scam brokers 2021 - identify and avoid

Find below the 2020 up-to-date list of scam brokers as well as our explanation of some scam aspects in the international currency market.

Scammers in the forex market: who are they?

How to identify forex trading scams?

But if you need more details, weвђ™ll tell you about the main practices by scammers. Here are some:

They promise high profits

They say there are no risks

No regulation

Unprofessional practices

Dubious strategies

Dubious tools

Fake ratings

SSL-certificate

Blacklist of forex scam brokers 2020

Below there is a table that is updated in real-time. Its purpose is to warn novice traders about scam brokers who are not to be trusted.

You need this blacklist because, despite the confirmed scam schemes, some forex bucket shops and pyramid schemes continue to function successfully.

Why forex brokers are regulated and why do we need to know?

Here are the main international forex regulators:

Belize international financial services commission;

Cyprus securities and exchange commission;

Mauritius financial services commission;

UK financial conduct authority;

South africa financial sector conduct authority;

Securities commission of the bahamas.

Scam brokers from the black list can deceive traders for the very reason that their activities are not regulated by anyone!

Is forex itself a scam? Test the reliability of your forex broker

Does your brokerвђ™s official website have an SSL certificate?

Does your broker use one of the following terminals: MT5, MT4, LIBERTEX, QUIK, TRANSAQ, CQG, or ROX?

Is your broker regulated by one of the following organizations: IFSC, cysec, FSC, FCA, FCSA, SCB?

Does your broker have more than 20 trading tools?

Does chat support respond quickly?

Is your forex broker widely known; and if so, is he included among our ratings for TOP forex brokers?

Did you read feedbacks on this broker; and if so, are they mainly positive?

Does the broker offer additional services (for example, auto trading)?

Does your broker avoid making cold calls to you requesting deposits or participation?

Can you make a deposit using standard methods вђ” visa/mastercard, wire transfer, paypal, skrill?

How to interpret test results:

If you answered вђњyesвђќ to all 10 questions, then this is a reliable broker, and you can work with him.

If you got 7вђ“9 вђњyesвђќ answers, then the broker is most likely reliable, but we recommend reading additional information about him.

If you have only 5-6 вђњyesвђќ answers, then we recommend that you study the feedbacks on this broker in detail as it is doubtful that he is reliable.

If you have less than 5 вђњyesвђќ answers, then traders union does not recommend working with this broker because it is very likely that he is a scammer.

List of three recent forex trading scammers

Current status of a company

The broker stopped fulfilling its obligations to traders. Deposits are frozen and impossible to withdraw.

We do not recommend working with them. Most likely they are scammers.

The broker operated under the license of a non-existent regulator; their registration is not confirmed.

We do not recommend working with them. Most likely they are a forex bucket shop or pyramid schemes

They donвђ™t have a regulator; their user agreement does not contain the financial obligations required before trading.

We do not recommend working with them. The feedback says they are a scam organization.

Feedbacks of traders unionвђ™s participants on scam brokers

Reviews

In order to leave your feedback on the broker's work, you do not have to be a traders union client! Anyone can do it! You just need to register on the website and post your review.

Circle markets seems to be nothing but a forex trading scams. It's absolutely impossible to contact their office. They're kind of bottled up, I read about them on the web and decided not to sign up.

The traders unionвђ™s expert opinion - how to avoid becoming a victim of a forex scam

The author of this article about forex scam brokers

In 2008, he graduated from the london institute of banking and finance, department of finance, investment, and risk;

In 2009, he became the youngest trader-analyst of global invest;

In 2010, he became an independent analyst in TD ameritrade;

In 2011, he defended his ph.D. Thesis on economics in the university of california-berkeley;

From 2012, to 2018 he worked in different american and international broker companies;

From 2018, he has worked with traders union as an independent expert and trader as well as with other tradersвђ™ associations as a freelancer;

He has 12-years of experience of continuous trading in the forex currency market.

Faqs regarding forex fraud

What is a blacklist of forex scam brokers?

This is an anti-rating system for the forex market, which includes brokers whose activities look like fraudulent schemes: forex bucket shops, fly-by-night websites, or pyramid schemes.

What are the risks when working with brokers from blacklists?

How not to get deceived by a scammer?

Blacklisted brokers are unreliable; where do I find reliable ones?

Risk disclosure:

Disclaimer:

Any payments made by tradersunion.Com to the users of our website are only as a bonus for activity on the website, in the form of advertising income deduction; and such payment cannot:

В· be subject to any claim by our users or third parties;

В· obligate tradersunion.Com to act or refrain from any act;

В· expose or subject tradersunion.Com to any legal or other dispute; or

В· be considered as part of the services provided by the brokers.

Disclosure of advertisers and revenues:

so, let's see, what we have: how to avoid forex trading scams in 2021? Check your broker in our black list before opening account. We have been collecting data about forex scam brokers for more than 10 years. At forex scams list