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How Can You Spot A CFD Trading Scam Today?!

We live in an ever-changing world where everything is getting technology-based. People are now looking for amazing ways to earn money. Nowadays, one of the best ways people have earned huge chunks of money is through CFD trading.

People from all over the world are engaged in trading on different platforms out there. If they do not have much knowledge regarding CFD investments, they hire CFD brokers who guide them and help them make cash.

Forex on sunset

Sure, CFD is one of the best methods to make money right from your home, however, the biggest problem with the trading system is that there are many CFD trading scams that people have to face. These have increased over the years and people have lost their money. There are many different ways people get scammed, even the smarty pants get scammed at times if they’re not that careful. 

Now, if you are someone who is interested in the world of CFD, then get your tea and keep on reading! In this article, we are going to have a look at CFD scams, ways in which you can spot them, and how to be careful.

Before making any financial decisions, "ask questions", and "do your homework".

NASAA Advise for CFD's

If you are someone who’s interested in Trading CFDs, then you’re definitely at the right place. We can give you the best practices in identifying red flags as well as help you in recovering your stolen money from scammers!

Table of Contents

What Are CFD Trading Scams

CFD works in a way that you trade on leverage. The profit or loss that you make is based on the difference between the opening and closing price that you trade at. They allow you to invest in liquid assets including forex CFD, bitcoin CFD, and others that have known to be highly beneficial. CFDs have been out there for ages now however, there wasn’t much awareness regarding them before.

gold silver coins

The process in the past was quite time-consuming as well since they were self-regulated and it used to take weeks for one to open up an account. Individuals had to fill in different paper forms, provide financial statements, and needed a specific amount of balance in the account number they provided. However, that is not the case anymore and anyone can easily trade CFDs. 

All of this sounds interesting and a great way to make money. On the other hand, did you know CFD scams have increased over the years? This can be done in different ways. Either through a broker who makes sure you trade more without checking if that will be beneficial for you or not or other methods as well.  CFD scammers want their clients to lose money as the more they trade, the more money the scammers get. They makeup strange stories about how they should trade right now as it will be beneficial for them.

Spotting a CFD Scam The Right Way

surfing at dark

There are multiple ways scammers will try to manipulate you and get your money. Now, when you are trading with CFDs, you need to keep the points mentioned below in mind to keep yourself safe from scams. These methods are a few common ones.

1. Do not Trust Lifestyle Ads

The first thing you need to keep in mind is to never trust lifestyle ads. CFD brokers are not allowed adverts since CFDs are lifestyle products. If you see a lifestyle ad of a CFD broker, chances are the broker is not reliable and that you are going to get played.

2. Ignore Cold Calls

video call

If you seem to get a call from a persistent salesman, what you need to do is hang it immediately as it is a red flag. Moreover, report the number as well. Reliable and professional CFD brokers do not call new clients and convince them to avail their services.

However, some might call at times through links. If the person seems to be too persistent, you shouldn’t go for it. One can easily detect the difference between a welcome call and a person who is desperate to have you as a client. A fake CFD broker will go to lengths to convince you and will act as a regulated broker. The person will also say stuff like getting rich in days or earning a huge amount of money in just a couple of days.

3. Zero Risk Warnings

caution tape

If you end up coming across online ads that do not have any sort of risk warnings, you need to ignore and report them. The requirement for risk warnings actually leads to risk warning fatigue. This means that people end up ignoring reliable ads.

4. Pressurizing Brokers

No reliable broker is ever going to pressurize you to open an account. Nowadays, brokers are looking for CFD traders that will hire them for a long time period. They want to build a relationship with their clients instead of acting shady and greedy.

What Are The Many Ways You Can Get Scammed with CFDs?

If you are thinking of investing in bitcoin CFD, indices CFD, or any other type, then be careful as there are numerous ways you might get scammed. Some of the most common ones have been mentioned down below.


We have encountered victims who were mentally and emotionally drained when they were scammed out of their money. We can help you with your legal and technical concerns. We can help you get your money back.

1. Your Broker Prioritizes Commission

One of the biggest problems CFD traders face is that their brokers prioritize commission on top of spreads. The concept here is that spreads are known to be the differences one can see in the buying and selling price of an asset when you’re buying them from a broker. If you are buying an asset for a certain price, you won’t be able to sell it at the same price. When you are selling it back, the broker will pay you a small amount and keep the rest.

This is exactly how brokers work and end up making money from the trades you make. Now, when a broker prioritizes commission instead of spreads, that is when your money is going to go down the drain. The broker will make sure you spend more money on every trade. While the general rule is that the money by the broker should only be taken in the form of a spread, what scammers do is different than that. Such brokers are always a headache and should never be trusted.

These brokers pretend that they have worked with licensed companies out there and know what they are doing; however that is not the case. Moreover, they work with people who have no experience or knowledge regarding CFDs so that they can easily loot them without facing any issues.

2. Withdrawal Issues

atm machine

Fake brokers make it next to impossible for you to make a withdrawal. When you sign up with a broker, you need to open up an account. Now, when you are depositing funds in the account, you have to provide some information, not a lot. What scammers and fake brokers do is that they ask you to provide a lot of information that is not needed in the first place.

The money actually belongs to you and it should not be a huge deal or a time-consuming task to get your money out from the account. These accounts contain the funds that you deposited or the profits you get from your trades. The fake broker will come up with ridiculous policies making it impossible for you to get your money out of the account. This is how you understand that the person was actually a fake.

3. Requotes are Common

Requotes is something that must be avoided at all costs when you are hiring an online broker. You will realize that when it comes to the best and professional brokers, there are no requotes at all on their trading platforms when you are actually signing up with them.

If you were scammed and got your money stolen from a investment scam, then contact us to get your money back for you!

This way you realize that requotes are not actually great and you should try staying away from them. In cases like these, a broker does not let you enter a market that might benefit you in some way or another. They make sure you do not make every trade a profitable one. When they understand you are going to earn a good amount of profit, they play smart and throw requotes at you.

4. Cash Deposits

Lots of Money

We all know everything nowadays is digital and people do not go for cash deposits anymore. In the trading world, it is a regulation that brokers cannot accept money in cash from their traders. Now, when you are signing up with a broker, you need to send money through a method that records the transaction.

When you are going to send the money through cash, there is no way the transaction would be recorded, and that is not safe at all. Even if you do have proof of payment, the broker can easily deny it. Fake brokers are always going to convince you somehow to make the payment through cash. They will say that it is an easier process, will take less to speed the process, and other excuses that do not make sense at all. They are only going to go away with your money leaving you behind with nothing.

5. Fake Trading Bots

busy on computer

Look out for fake trading bots when you are dealing with online scammers. The scammers are going to convince you to use software that they claim is the best one out there when it comes to trading. They make you believe that the software is definitely going to help you make tons of money.

They say that the software is a trading bot that will actually trade on your behalf and make sure every trade is successful. In reality, this is not possible. There are no such bots and all your broker is trying to do is to get more deposit fees from you. That is all. Never believe a broker who asks you to use a trading bot.

6. Huge Signup Bonuses

100 dollar bill

This is one of the most popular ways scammers try to get money from you. Now, we all know when it comes to trading, you have to open up a trading account with your online broker. When opening the account, you have to add some money to it in order to get bonuses.

There are brokers who offer to pay 100% bonuses on your initial deposits. Sounds shady right? Now what this actually means is that you actually get a 100% increase in your first deposit only because of the broker. This is the most common luring method used by online trading brokers out there. Professional brokers of not force one to sign up with them based on the bonuses they offer.

Scammers only try to gain your trust at first and end up scamming you later on. People believe the broker is really nice due to the bonus offered. However, that is certainly not the case at all! There is no such thing as good bonuses when it comes to reliable and professional brokers who have lots of other things to brag about bonuses. Learn more on how to protect yourself by visiting our website!

What To Do Regarding CFDs?

When it comes to CFD trading, what you need to do is use reliable online companies to find out the best brokers that are going to help you out with your trades. Have a look at the reviews of the person or company, years of experience, and the number of clients the broker has dealt with.

A reliable broker is always going to be transparent from day one and will provide you with all the information you need before you sign up. Moreover, if you do end up getting scammed by a fake broker then you must report the person and hire a lawyer to get your money back. The process is a long one and might take some time. 

Here comes an end to our article regarding CFDs. If you are someone who has always been interested in CFD trading, then this article must have been really beneficial for you. Trading is like gambling, you never know what might happen.

However, if you play smart and by the book, you might actually end up with a lot more money than you imagined. Just make sure to keep yourself safe from any scams mentioned above and try to spot them beforehand. Invest in CFDs and earn a lot of money!

do you need help?

A lot of those who contact us have questions and concerns about their personal and business data being compromised. We aim to arm you with the legal and technical know-how in the fight against scams. Also, we will be able to refer you to top scam recovery agencies.

Please fill up the form. Rest assured that our support team will get in touch with you

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