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The Most Common Forex Scams of 2022 Everyone Should Be Aware Of!

Category: Forex Scam
Length: 23 Page
Reading Time: 45 Min

Excerpt: These scammers within mere hours scam people and vanish after they have received the payment. There are several types of Forex trading scams which include signal seller scams, forex robot scams, forex broker scams, forex pyramid schemes, and managed forex account scams.

April 7, 2022

Introduction

Forex scams are primarily scams when scammers trick and manipulate people’s info by investing in fraudulent foreign currency schemes. These scammers and criminals promise them a once-in-a-lifetime investment opportunity in which the traders can make high returns overnight. These scammers within mere hours scam people and vanish after they have received the payment. There are several types of Forex trading scams which include signal seller scams, forex robot scams, forex broker scams, forex pyramid schemes, and managed forex account scams.

These types of scams are very dangerous and the rate of forex trading scams has increased exponentially. The number of results you find out online about Forex trading scams is staggering and with the rise in Forex, trading scammers have also increased. It is very difficult to find Forex brokers and traders that are not scammers and are actually reliable. It is very hard to find a broker that is not going to scam you and run away. This article talks about various types of Forex trading scams and talks about the history of Forex trading scams. In addition to this, this article lists down companies that have been blacklisted for Forex trading scams.

Over £27 million lost to scams involving crypto and forex investments in 2018-2019

Securities and Exchange Commission

If you’re someone who is into Forex Trading, 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

CHAPTER 1: The History of Forex Trading Scams: It’s Quite A Roller Coaster Ride

forex on sunset

Throughout the years, Forex trading scams have rapidly developed and there has been an increase in scammers on this platform. The forex trading platform has expanded exponentially and as of April 2019, this platform has traded over 6.6 trillion U.S. dollars. The Forex trading market is an unregulated market that has no government body or financial institutions that are responsible for monitoring or controlling these transactions. This market is an unregulated market and seeing the enormous amount of money flowing in such a market it is very common for scammers to be attracted to such a lucrative market. 

There are large amounts of money being traded and floating around in the Forex market which includes over the counter trading and there is no accountability required in such trading. In addition to this, the Forex trading platform has attracted several scammers that promise people lucrative rewards and lure people by offering them large sums of money for minimal effort and work. 

Moreover, this market is a highly volatile market that has several risks. The market is lucrative but at the same time, it’s very tricky to invest in Forex and lose money that you can’t afford to lose. It is always advised to refrain from investing in retirement funds or any savings that are highly important.  There have been several people who have reported losing tons of money due to Forex trading scams. 

low chart

This mostly includes people who have retirement funds. These people lose their money very quickly because they fall prey to scammers and other fraudsters.  Now let’s talk about ways you can identify these scammers and avoid these scams. I know it’s hard to catch a scammer especially when it’s your first time trading on Forex but lookout for these red flags to avoid being scammed. 

Let’s talk about the red flags that you need to avoid and if you spot anyone if these red flags run away like not in the literal sense but refrain from investing in such places.

Red Flags of Forex Trading Scams That You Should Watch Out For!

1. Any requests to transfer money

The number one red flag you need to look out for while trading on Forex is to avoid transferring any money through the internet or through email. This is the number one tactic of fraudsters and scammers when they need to withdraw money from you. They trick and manipulate you into sending them money or cash through the internet or email. These are the red flags that you must avoid and if you ever hear someone ask you to do this you need to stop contacting them.

chart on phone and laptop

2. No background information

The second red flag which is quite important while trading on Forex is background information and research. Whenever you’re investing in a company or you’re investing in the Forex market you need to make sure that you’re aware of all the company information or the broker’s information. It is essential to have adequate information which will allow you to invest in a company. If your broker fails to provide you with adequate information and is reluctant in providing substantial information you need to refrain from resting in any such company. 

It is imperative to have all the essential information which includes full disclosure of the profit and loss and all other trading information. If your investor fails to provide you with adequate information then they’re definitely scamming you.

Are You Wondering How You Can Identify A Possible Forex Scam?

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I’m sure you’re all aware of the sudden rise in Forex scams and how several people have lost millions of dollars trading on this platform. There are several ways through which you can easily spot Forex scams. Now let’s discuss the three ways by which you can easily spot any Forex scam. Now, these three ways are literally red flags that you must not ignore, and if your Forex Broker does anything of this sort you need to run!

1. Guaranteed success or large profits

I can’t stress this point enough! This is the most common and popular way to lure in Forex investors and beginners. This is a technique that has been used for several years now and each time victims fall for this trick. Now let me break it down for you. The Forex market is an incredibly dynamic market that is unregulated and the market changes are completely sudden and you have no guarantee of success. The market environment is incredibly volatile and it’s always changing. 

Nothing in this market remains constant and no broker can guarantee you success or profits. Any broker who promises millions of dollars or portrays the forex market and the returns as a fairytale that includes millions of dollars is likely to be a scammer. Setting unrealistic expectations and luring investors by promising high returns is their scamming technique. So please don’t fall for it! The next time any broker assures you of a profit or success you better block that broker and report him.

2. No background information or evidence

This is yet another easy way to spot a scammer. It is very easy to show customers pictures of charts and show them the profits of the company when in reality it’s all fake. Nowadays these scammers have become insanely smart and savvy. They can easily make up the profit and loss charts for only a period of time. 

Please don’t fall for this scam and don’t decide to invest in Forex trade based on this alone. You need substantial information which includes background information and the full disclosure of the profit and losses. If these brokers seem reluctant or refuse to show you they’re a definite fraud. Never invest in a company or with a broker without having full disclosure.

3. Unsolicited marketing

This is yet another sign to spot fraudulent and malicious behavior. Any broker or company persistently marketing their services to you and almost pushing you to work with them are definitely scammers. If you’re being pushed or swayed to purchase something with inadequate information and little time it’s a definite attempt to scam you. If you feel someone is pushing you towards their service and being too eager and persistent you must avoid them. 

Do you suspect that someone had scammed you?

If you have any suspicion of a scam or phishing attack, then you can rely on TheClaimers to help you with protection, mitigation, and fund recovery. You will feel safe knowing that experts with years of experience will be guiding you!

What Are The Preliminary Steps You Should Take if You Are Being Scammed?

Another tip is to avoid giving any personal information to anyone without actually conducting a background check. If you’ve ever gotten scammed these are the steps you should follow to recover your money from any scammer.

Collect all the information you have

The first step which is the most important step is to collect any information about the scammer. I know you’re probably really worried right now but you need to do this before you lose all the vital information. Online scammers are extremely clever and cunning. They know their way around things and can easily fool people and delete all their accounts so that they don’t get caught.

However, there’s always a loophole and the scammer will always leave some proof due to hurrying and rushing to vanish and prepare for the next scam. This is your chance to gather all their information from the contact number, the email address that they provided you, the account number they gave you, screenshots of all your conversations with them, the username of the account, the fake names or IDs they gave you and any other information that could help you find the scammer. 

This is all extremely vital information that will be used to file an official report against the scammer.

Report the broker

financial chart on hand

The second step which is equally as important is to report the broker or scammer to the appropriate authorities. Now each country, city, state, and town have different organisations and federal agencies that are known for dealing with all cases of fraud and scams. In the United States, there are several federal agencies such as the department of justice and the federal trade commission. 

The scammer that took all your money is likely to scam someone else and since scammers have perfected their scamming pattern they stick to that. They scam several people with the same pattern and once you provide the government and federal agencies with the information they’ll easily connect it to the scammer because there are more victims of the same scammer. 

This will make it very easy to identify the fraud and recover your money. The government agencies have the highest quality and standards of fraud detection technology and hence they’ll easily get you your money back.

Block all credit card transactions

visa card

Another very important step is to block your credit card and report all the transactions that were made by the scammer. Since you have given your private information to the scammer because you were investing or shopping online they can easily use your card and make countless transactions. The best way to stop this is to call your bank and get the card blocked to avoid any further loss.

CHAPTER 2: The Various Types of Forex Scams To Keep An Eye Out For!

Signal seller scams

Signal seller scams are a common way and a popular scamming method that is used by scammers to scam many people on Forex. Many traders rely on seller signals. You might be wondering what the seller signals and how they work. Let me guide you through signal seller scams. These seller signals are primarily an indication of what the financial markets are doing and it is considered to be the best tool in the market for making forecasts about future trading performance.  

In this era, it is now possible for traders to purchase information products that contain useful indicators of which to trade. This is mainly something that scammers take advantage of and use to scam people.

binary chart

There are several scammers that create a series of falsified signals which seem to look authoritative but the trader takes down the wrong path to make the entire transaction only lucrative for the broker. Now let’s talk about what these signals truly represent and what these signals are used for. Primarily scammers create a wide series of false signals which might look very authoritative but are detrimental to all the traders and will only benefit the broker. 

These signals might look trustworthy but are a mere scam and a manipulation to persuade and motivate you to invest money into the scam. This is only lucrative for the trader and no one else. There are several dishonest traders on the forex market that specialise in all such types of scams and are known for being active participants in these scams. However, this type of fraud and scam is only possible as a result of the increased misinformation traders have and the advancements in technology. 

These technological advancements might seem very lucrative but in reality, they are detrimental and are responsible for rapidly increasing the number of signal seller scams. Thanks to the rapidly advancing and changing technology scammers are now able to manipulate and scam people easily.

How do they work?

men on computer

This is a very popular type of Forex scam which includes signal sellers which are mainly retail firms or individual traders that offer a fee that is either daily, monthly, or weekly. They claim to know the favorable times in which they can trade currency while offering huge sums of money since they claim to make anyone wealthy. 

They manipulate and trick people by praising their trading abilities, customer reviews, and all the wealth that they have generated. These signal seller scammers take money from people and scam them. However, some might be reliable only to perpetrate further scams and widen their scamming range. 

Now you all might be wondering how these scams truly operate and what are the mechanisms behind the operations of such scams. Don’t worry I’ll be talking about everything. A wide range of traders can easily fall victim or prey to the signal seller scams and trust me it is indeed very easy to scam people through the signal seller scam. This type of scam is the most popular type of Forex scam and hence many traders might be a victim of this type of fraud. 

The main targets for this type of scam are traders who are beginners and have little to no knowledge of the operations of the forex market. This includes all such traders that are new to the Forex market and are simply seeking to make profits. These types of traders are the most vulnerable and can easily fall for all such scams. Traders who have recently started out are the main victims of these types of frauds and are at a major risk of being exposed to the signal seller scams. 

There are several ways through which a signal seller scam can take place and there are different methods to scam people.

men trying to hack

An example is a fraudulent organization selling information related to signals which is most definitely going to set up a website that might be listed and it might appear as a completely normal and legitimate website. In addition to this, many signal scammers contact and find possible targets through social media platforms such as Instagram and Facebook. 

These scammers lure and manipulate people by portraying the website as being very successful and making the trade seem like a dream come true. They advertise the lifestyle of traders which further aids in manipulating people and luring them.  

Once any scammer has found the victim who in most cases is a beginner the next step is to persuade and motivate the customer to sign up for the service. Whilst signing up they also persuade customers to pay a monthly or weekly fee for the service. The number one tactic of these scammers is to use previous information and statistics and present it to the customers to show the so-called success of the company.

Why are they risky?

This signal scamming method is highly risky and it is only lucrative for the broker. The trader suffers several consequences including being scammed.  These signal scammers provide false signals and lure customers in through their marketing techniques. These false signals lead to wrong trades being made by the customers and hence the trader suffers while the signal scammer benefits. The signal scammer is experienced in attracting people and then manipulating them and forcing them to buy their service.

2 man talking

This service might seem very attractive to new Forex traders however in reality this is the worst type of scam possible. Since signal sellers are the sole reason behind you purchasing or selling a currency, if these signal sellers are scamming you and not telling you about the right time you’ll suffer immeasurable losses. This includes immense loss in the forex market since you aren’t purchasing the currency at the correct time because your broker is a scammer or is involved in malicious practices.

Red flags of signal scammers?

There are several ways by which you can easily spot signal scammers and avoid being scammed. This is especially useful for all the new readers who are not as experienced as others and are often the main targets of signal scammers. We’re already aware of signal seller scams and how brokers give suggestions about the perfect time to buy or sell a currency based on their market analysis. These brokers or investors charge special fees for this and they promise you high profits and immense returns which is something that is already a red flag.

caution

The forex market is highly dynamic and it is constantly changing due to price movements and the entire environment it is impossible to actually guarantee returns. This is one important sign to identify these signal seller scammers.  Another way to identify that these signal sellers are frauds is if they are continuously advertising their service again and again. This might be in the form of unsolicited marketing that is almost pushing you to purchase the service.

Forex robot scams

This is yet another persistent scam and this involves scammers touting their trading skills to make you wealthy while you sleep. The new terminology for these scams is robot scams since the scamming process is automated with technology. The robots scam Forex traders and hence these forex robot systems must be examined before investing a huge sum of money into the market. Forex robots submit programs that claim to automate the forex trades and these robots help traders sleep through the night knowing that all of their trades will take place at the designated time. It sounds so easy and helpful, right?

binary app

However, these forex robots have been getting a lot of hype lately and these forex robot scams are not behind. Trust me wherever there are Forex robots nowadays there are Forex robot scams. Now let’s first talk about the purpose of Forex robots and what these forex robots are. Almost all Forex brokers currently offer their account holders the opportunity to use forex robots for their trading as it makes it easy for them to sit back and relax.  These forex brokers assure traders and back up these robots with profits and portray these robots as being incredibly helpful. 

They go as far as saying that most traders have generated tremendous profits and they lull the traders into a false sense of security only to lead the traders to lose tons of money. Now let’s talk about forex robot scams. These forex scams are similar to what fraudulent brokers do.

They attract and lure innocent traders into purchasing a forex robot and using it for trades. This is mainly done by promising the traders huge sums of money and hefty returns. Now come on, who won’t fall into this scam? Technically all traders, especially new ones, are looking to earn profits without spending a lot and some are willing to spend but need assurance. Now that’s where these traders fall into such scams. 

The forex market is dynamic and complex. It is an unregulated market that functions on volatile price changes and price movements that determine profitability. You cannot be sure of a profit and you simply cannot gain large sums of money overnight by using these robots for your trades. 

DO YOU SUSPECT THAT SOMEONE HAD SCAMMED YOU?

If you have suspicions of a scam or phishing attack, you can rely on experts to help you with protection, mitigation, and fund recovery. You will feel safe knowing that experts with years of experience will be guiding you!

man-thinking-of-scam-protection.png

This is simply a common way through which forex robot scammers who are generally fraudulent brokers attract and manipulate people. This is especially true for all the new traders who are in a hurry and are in a rush to make profits and get rich overnight. So please to all the new traders there is no robot or no broker that can guarantee great returns to you and certainly, no broker can make you a forex billionaire overnight. 

You need to wait and you need to be patient enough for these trades to actually generate money. Whoever and whichever broker offers you a guarantee is most likely to be a fraud or a scammer.

How do they work?

Moving on to how these forex robot scams work now let me take you through the mechanisms of these forex scams. Forex robots are mainly used to manage the trades and many brokers encourage traders to use these robots. However, many of these brokers are frauds and scammers looking to lure people in and make a profit. These forex robot scammers mainly lure in people with the promise of huge gains from little effort or knowledge. This is the number one technique that scammers use to manipulate people. Scammers use this as a magnet to attract traders. They market their services and these robots as the path to big gains and incredibly high profits.

stocks on black

These forex robot scammers use fake and misleading figures and statistics to convince all customers into purchasing their products. These promises are obviously misleading and these robots can never adapt and thrive in such a volatile environment and such a dynamic market. Now that’s where these traders fall into such scams. 

The forex market is dynamic and complex. It is an unregulated market that functions on volatile price changes and price movements that determine profitability. You cannot be sure of a profit and you simply cannot gain large sums of money overnight by using these robots for your trades. 

This is simply a common way through which forex robot scammers who are generally fraudulent brokers attract and manipulate people. This is especially true for all the new traders who are in a hurry and are in a rush to make profits and get rich overnight. So please to all the new traders there is no robot or no broker that can guarantee great returns to you and certainly, no broker can make you a forex billionaire overnight. 

You need to wait and you need to be patient enough for these trades to actually generate money. Whoever and whichever broker offers you a guarantee is most likely to be a fraud or a scammer.

forex charts on phone

These forex robot scams are mainly software’s that are only used by professionals to analyze past performance and to further identify trends and new patterns.  These robots are scams and people fall victim to such scams because of the misleading information that these scammers have posted. If these robots would be so successful then these brokers would use these robots for themselves instead of marketing them to other people. So trust me when I say this, it’s a huge scam and thousands of traders have asked for refunds because they’ve lost tons of dollars due to these incompetent scamming robots.

Why are they risky?

Forex scams are incredibly risky and are detrimental for all traders. These forex scams are harmful and risky for a number of reasons. Forex scams are able to attract customers very easily as these scams seem very attractive and are highly sophisticated offers that sound too good to be true. These Forex scams include several types of advertisements which lure and attract customers. The victim who is the trader suffers at the hands of these scams and fraudulent activities. 

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

Forex is an incredibly dynamic and complex trading platform. The overall environment of the entire Forex platform is based upon sudden and unforeseen price changes and price movements that are not guaranteed. The major drawback of this platform is its dynamic nature since there is no sure shot at getting profits or being successful at forex trading. These Forex platforms are dynamic in nature which is also an advantage since many traders get rich overnight for a favorable price movement. 

men at dark

The market is incredibly volatile and continuously changing and altering. Anyone who assures you of guaranteed success and profits in Forex is definitely lying and is a potential scammer. Experienced forex traders are incredibly hard to scam as they are aware of the nature of the market and they’re aware of how it functions, however the beginners are vulnerable to all types of Forex scams. These beginner traders can easily be manipulated and lured through fake advertisements, fraudulent brokers and phoney websites that pose as legitimate forex trading platforms. 

These beginners are unable to actually know when a broker is scamming them because they’re new to this. The number one tip I could give you while trading on Forex is that you’re taking a big risk and don’t expect to earn millions overnight. Forex trading is an incredibly complex trading platform that has several returns but only if you actually put time and effort into learning the tactics and skills of forex trading. You can’t become a billionaire overnight and the biggest risk of these forex scams is that they actually lead people into believing that this is possible. In addition to this, Forex scams lead to exposing of private and confidential information which is only meant for the user.

It leads to these scammers getting their hands on your account balance, credit cards, cash, and all other types of private information whether it is financial information or whether it is personal information such as an address, contact information, banking information, and passwords. This is all information that could be exposed and these forex brokers can easily use this to make transactions and empty your account balance. 

Another major risk of Forex trading scams is leverage. This primarily means leveraging your account and your trade. Many investors who have gotten scammed on forex have lost thousands and millions of dollars due to being leveraged.

Forex broker scams

The number of Forex broker scams has rapidly increased and these broker scams are now prevalent. There are several types of Forex broker scams and the sun red flags for a dishonest broker are going to be mentioned in this article. The main red flags include your broker not responding to you and failing to answer your messages. 

This is a major red flag for all Forex traders since a broker who doesn’t respond to your messages clearly states they are not looking for your best interests and they do not care at all about you. Another red flag is if you fail to actually withdraw your money. These forex broker scams mainly take place when these brokers manipulate and trick their traders.

consultation

These brokers are very manipulative and dishonest and they promise the traders high returns and huge profits which should be the first red flag for traders. Many traders have experienced brokers manipulating them and tricking them by luring them in through fake marketing tactics and showing their success rates. These brokers show previous customer reviews and they show previous trading statistics which can easily be fake and illegitimate. These brokers are only looking to make commissions and are only interested in gaining their own profit. They are not interested in actually helping traders and hence broker scams are on the rise. 

Many traders have experienced brokers intentionally trying to cause a major loss such as trades shifting or brokers stopping hunting and many traders have experienced slippage on their orders. Many of these traders have reported having negative trades and mostly all of them result in losses. 

In such instances, their brokers are scamming and manipulating them. Their brokers are specialising in scamming these traders. These brokers guarantee high returns and huge profits when in reality are scamming traders left and right. These brokers are only interested in scamming these traders and ruining their trades. So the next time a broker approaches you with such an offer that guarantees success and profits kindly walk away. This type of scam is the most popular type of Forex scam and hence many traders might be a victim of this type of fraud. 

The main targets for this type of scam are traders who are beginners and have little to no knowledge of the operations of the forex market. This includes all such traders that are new to the Forex market and are simply seeking to make profits. These types of traders are the most vulnerable and can easily fall for all such scams. Traders who have recently started out are the main victims of these types of frauds and are at a major risk of being exposed to the Forex broker scams.

How do they work?

typing on keyboard

As a result of new forex brokers popping up there has been an unexpected rise in Forex broker scams. This is primarily because these brokers are responsible for manipulating tons of traders and luring them in by promising high returns and instead of this they scam them. Now let me tell you how this works, mainly Forex traders get attracted by the unbeatable offers of these brokers which include high returns, huge profits, and success in the forex market. These new traders are very vulnerable and hence far attracted to this type of fraud and scams and thereby they work with such brokers. 

Now once they start working with such brokers they soon realise that these brokers are only causing their trade to suffer. Once these brokers get their commissions they vanish and never reply to the innocent trader.

HAVE YOU BEEN SCAMMED AND NEED HELP IN FIGHTING BACK?

Scammers can create complex scams that can trap even the most cautious of people. But it’s not too late because we can help you track the damage done by scammers. We can help you get your money back!

Why are they risky?

Forex scams are incredibly risky and are detrimental for all traders. These forex scams are harmful and risky for a number of reasons. Forex scams are able to attract customers very easily as these scams seem very attractive and are highly sophisticated offers that sound too good to be true. These Forex scams include several types of advertisements which lure and attract customers. The victim who is the trader suffers at the hands of these scams and fraudulent activities. 

Forex is an incredibly dynamic and complex trading platform. The overall environment of the entire Forex platform is based upon sudden and unforeseen price changes and price movements that are not guaranteed. The major drawback of this platform is its dynamic nature since there is no sure shot at getting profits or being successful at forex trading.

question mark

These Forex platforms are dynamic in nature which is also an advantage since many traders get rich overnight for a favorable price movement. The market is incredibly volatile and continuously changing and altering. Anyone who assures you of guaranteed success and profits in Forex is definitely lying and is a potential scammer. 

Experienced forex traders are incredibly hard to scam as they are aware of the nature of the market and they’re aware of how it functions, however the beginners are vulnerable to all types of Forex scams. These beginner traders can easily be manipulated and lured through fake advertisements, fraudulent brokers and phoney websites that pose as legitimate forex trading platforms. These beginners are unable to actually know when a broker is scamming them because they’re new to this. 

The number one tip I could give you while trading on Forex is that you’re taking a big risk and don’t expect to earn millions overnight. Forex trading is an incredibly complex trading platform that has several returns but only if you actually put time and effort into learning the tactics and skills of forex trading. You can’t become a billionaire overnight and the biggest risk of these forex scams is that they actually lead people into believing that this is possible. In addition to this, Forex scams lead to exposing of private and confidential information which is only meant for the user.

forex chart

It leads to these scammers getting their hands on your account balance, credit cards, cash and all other types of private information whether it is financial information or whether it is personal information such as address, contact information, banking information and passwords. This is all information that could be exposed and these forex brokers can easily use this to make transactions and empty your account balance. 

Another major risk of Forex trading scams is leverage. This primarily means leveraging your account and your trade. Many investors who have gotten scammed on forex have lost thousands and millions of dollars due to being leveraged.

Forex pyramid scheme

Have you ever heard of the word pyramid scheme or Ponzi scheme? If you haven’t, let me explain it to you in simpler words! A pyramid scheme is primarily a fraudulent money-making system that makes money based on hiring an increasing number of investors. The initial promoters hire investors who then in turn hire investors and this goes on. This is known as a pyramid scheme because each level features an increase in the investors. 

The main purpose of the pyramid scheme is to use products and services to act as if they are a legit business but their main motive is to collect money from all the investors at the bottom levels to pay investors at the upper levels. Hence the upper investors are the ones who benefit the most from pyramid schemes. There are several famous pyramid schemes which include Mary Kay consulting, United Sciences of America, Vemma, Herbalife, and lastly Amway.

what is pyramid

So what’s the conspiracy behind this popular question? Let’s find out whether Forex is yet another pyramid scheme or whether it is legit. Many experts argue that Forex is indeed another pyramid scheme. Let’s explore whether this is true or whether it’s just another pyramid scheme. Forex pyramid schemes are very common and are popular. These pyramid schemes are a combination of digital brokers, deception and tons of unsolicited marketing. 

The main way a pyramid scheme functions is on deceptive practices such as lying about the company and overall lying and deceiving vulnerable traders on this platform. There are several ways through which traders are constantly deceiving people and being dishonest. This includes traders guaranteeing high returns to brokers and telling them to trust their company when in reality they will simply take your money and scam you.

How do they work?

There are several major signs which indicate forex pyramid schemes and how they function. Let’s talk about how these pyramid schemes work and how they operate.  Firstly these pyramid schemes offer high returns and profitability which is common in all forex scams. Secondly, these forex pyramid schemes have an opaque earning mechanism which clearly states that you simply invest and earn money. This is what forex pyramid schemes say and this is how they attract and lure in people. 

There is no explanation as to where the money is coming from and how this money is being generated. There are common phrases that will be on pyramid scheme sites which include “ you receive dividends from investments in Forex” and “ we increase your deposit by trading with various assets” the most common one is “ experienced managers invest your money into stocks etc”.

Ponzi Scheme

These are common phrases that will indicate whether a forex pyramid scheme is taking place. This is simply a common way through which forex scammers which are generally fraudulent brokers attract and manipulate people. This is especially true for all the new traders who are in a hurry and are in a rush to make profits and get rich overnight. 

So please to all the new traders there is no broker that can guarantee great returns to you and certainly, no broker can make you a forex billionaire overnight. You need to wait and you need to be patient enough for these trades to actually generate money. Whoever and whichever broker offers you a guarantee is most likely to be a fraud or a scammer. These Forex pyramid scams include several types of advertisements that lure and attract customers.

The victim who is the trader suffers at the hands of these scams and fraudulent activities. Forex is an incredibly dynamic and complex trading platform. The overall environment of the entire Forex platform is based upon sudden and unforeseen price changes and price movements that are not guaranteed. The major drawback of this platform is its dynamic nature since there is no sure shot at getting profits or being successful at forex trading. These Forex platforms are dynamic in nature which is also an advantage since many traders get rich overnight for a favorable price movement.

Why are they risky?

question mark

Forex scams are incredibly risky and are detrimental for all traders. These forex scams are harmful and risky for a number of reasons. Forex scams are able to attract customers very easily as these scams seem very attractive and are highly sophisticated offers that sound too good to be true. These Forex scams include several types of advertisements which lure and attract customers. The victim who is the trader suffers at the hands of these scams and fraudulent activities. 

Forex is an incredibly dynamic and complex trading platform. The overall environment of the entire Forex platform is based upon sudden and unforeseen price changes and price movements that are not guaranteed.

The major drawback of this platform is its dynamic nature since there is no sure shot at getting profits or being successful at forex trading. These Forex platforms are dynamic in nature which is also an advantage since many traders get rich overnight for a favourable price movement. The market is incredibly volatile and continuously changing and altering. 

Anyone who assures you of guaranteed success and profits in Forex is definitely lying and is a potential scammer. Experienced forex traders are incredibly hard to scam as they are aware of the nature of the market and they’re aware of how it functions, however the beginners are vulnerable to all types of Forex scams. These beginner traders can easily be manipulated and lured through fake advertisements, fraudulent brokers and phoney websites that pose as legitimate forex trading platforms. 

These beginners are unable to actually know when a broker is scamming them because they’re new to this. The number one tip I could give you while trading on Forex is that you’re taking a big risk and don’t expect to earn millions overnight. Forex trading is an incredibly complex trading platform that has several returns but only if you actually put time and effort into learning the tactics and skills of forex trading. You can’t become a billionaire overnight and the biggest risk of these forex scams is that they actually lead people into believing that this is possible.

In addition to this, Forex scams lead to exposing of private and confidential information which is only meant for the user. It leads to these scammers getting their hands on your account balance, credit cards, cash and all other types of private information whether it is financial information or whether it is personal information such as address, contact information, banking information and passwords. 

This is all information that could be exposed and these forex brokers can easily use this to make transactions and empty your account balance. Another major risk of Forex trading scams is leverage. This primarily means leveraging your account and your trade. Many investors who have gotten scammed on forex have lost thousands and millions of dollars due to being leveraged.

Managed Forex account scams

Scam

Now not all Forex account managers are scammers but most of them are scamming people. Any forex account manager that hides their identity online and promises you high returns and profits is definitely a scammer. Now let me differentiate between Forex account managers that are actually reliable and Forex account managers that are scammers. 

A reliable forex fund account manager has only one motivation and rule which is to make money for the investor or the trader and in return they want to receive a 20-30% profit. Now you might wonder what a scammer is? A forex account manager who is a scammer will most likely have only one purpose which is to make tons of money for himself and himself alone.

They aim on making tons of money from several sources. The biggest conflict appears when the forex account manager asks you to open an account with his specified broker and using a referral link. That’s where you can clearly notice that something is not right and it’s clearly fishy. Now you might think how is this a red flag? Let me tell you how. 

Now once you’ve opened following the forex account managers instructions they get your funds under a certain link and can easily contact your broker which is again the one that the account manager selected. Now with this dishonest broker the account manager will be receiving returns and profits  for every position whether you win or lose. That is primarily how these forex account managers scam people.

How do they work?

sunglass and codes

Let’s talk about how these scams occur and how Forex account managers scam people. Now, this type of scam mainly operates by having an investor invest with a professional trader who is mainly responsible for trading the investor’s capital for a percentage of the profits. This might sound very appealing and attractive, especially to beginners and beginner forex traders. However, in reality, there are significant issues. 

For example, you’re putting your entire trust into a broker who will manage everything. This is similar to taking candy from a baby or blindly trusting someone with important information. In several cases of managed forex accounts, the manager appropriates funds towards luxury items that are completely unrelated from forex. This results in the manager buying tons of unrelated stuff for himself in the case of a dishonest account manager. The manager and client relationship involves complete and blinding trust but in the case of a dishonest account manager consider yourself doomed.

Since the manager had the power to use the funds in whichever way he pleases this results in the manager scamming traders. Now let’s imagine a hypothetical scenario of where a new trader gets a dishonest manager and trusts him with all of his funds. The trader is already inexperienced and does not have any knowledge of how the forex market works and on top of that he’s hanging his funds to a broker who he knows little about. 

Now don’t expect the fraudulent broker to treat the trader nicely instead he’ll invest the funds wherever he pleases be it buying a private yacht and sailing away into the deep blue waters. You’ll never even know since you’re new to this. This is how managers scam forex traders. This is something that has gained a lot of popularity and many brokers nowadays scam new traders through this method.

Why are they risky?

type writer

Forex scams are incredibly risky and are detrimental for all traders. These forex scams are harmful and risky for a number of reasons. Forex scams are able to attract customers very easily as these scams seem very attractive and are highly sophisticated offers that sound too good to be true. These Forex scams include several types of advertisements which lure and attract customers. The victim who is the trader suffers at the hands of these scams and fraudulent activities. Forex is an incredibly dynamic and complex trading platform.

The overall environment of the entire Forex platform is based upon sudden and unforeseen price changes and price movements that are not guaranteed. The major drawback of this platform is its dynamic nature since there is no sure shot at getting profits or being successful at forex trading. These Forex platforms are dynamic in nature which is also an advantage since many traders get rich overnight for a favorable price movement. The market is incredibly volatile and continuously changing and altering. 

Anyone who assures you of guaranteed success and profits in Forex is definitely lying and is a potential scammer. Experienced forex traders are incredibly hard to scam as they are aware of the nature of the market and they’re aware of how it functions, however the beginners are vulnerable to all types of Forex scams. These beginner traders can easily be manipulated and lured through fake advertisements, fraudulent brokers and phoney websites that pose as legitimate forex trading platforms.

broker on laptop

These beginners are unable to actually know when a broker is scamming them because they’re new to this. The number one tip I could give you while trading on Forex is that you’re taking a big risk and don’t expect to earn millions overnight. Forex trading is an incredibly complex trading platform that has several returns but only if you actually put time and effort into learning the tactics and skills of forex trading. You can’t become a billionaire overnight and the biggest risk of these forex scams is that they actually lead people into believing that this is possible.

In addition to this, Forex scams lead to exposing of private and confidential information which is only meant for the user. It leads to these scammers getting their hands on your account balance, credit cards, cash and all other types of private information whether it is financial information or whether it is personal information such as address, contact information, banking information and passwords. 

This is all information that could be exposed and these forex brokers can easily use this to make transactions and empty your account balance. Another major risk of Forex trading scams is leverage. This primarily means leveraging your account and your trade. Many investors who have gotten scammed on forex have lost thousands and millions of dollars due to being leveraged.

CHAPTER 3: Blacklisted Forex Companies Known for Committing Scams

STforex

STF Logo

STForex is a broker situated in Saint Vincent and the Grenadines that has been in business since 2014. This broker has been identified as a fraud and as a scammer and is prohibited from facilitating trading operations.  The method for this scammer was mainly demanding a minimum deposit for a live account and claimed to give a 200 percent deposit bonus as well as a US Dollar 10 no-deposit bonus.  In addition to this, the scammer offered PAMM accounts as well as other various trading accounts. The broker’s website was available in Russian and this website claimed to use mobile trading as well as an NDD model. This website also used a number of features and claimed to have a high maximum leverage.

Prophet Moral Monareng

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This is yet another fraudulent broker who advertised services on social media platforms and claimed to be a legitimate Forex broker regulated by the Financial Services Provider, or FSP, with a licence number which in fact was false information. In addition, this fraudulent broker went as far as claiming to work for Lebone Risk Solutions. The FSCA has exposed this fraud of Prophet Moral Monareng as a trading hoax, as well as exposing that he has no connection with Lebone Risk Solutions. In addition to giving information on the prosecution of con artists acting as legitimate Forex traders in a distinct fraud from that using Prophet Moral Monareng, the FSCA issued an official and public warning.

Grand Trade

Grand Trade is an unregulated offshore broker based in Belize and owned by Oracle Stone, Ltd. Traders who have had a variety of troubles with this broker have left several negative evaluations and reports. Grand Trade is primarily a futures trading broker that allows traders to trade Forex, cryptocurrency, and some precious metals on a web-based platform. This offshore broker promised almost 85% of the payment rate on the website and multiple traders have reported numerous losses at the hands of this phoney broker. The International Financial Services Commission, or IFSC, has issued repeated warning notices  about Grand Trade’s parent business, Oracle Stone, Ltd., and traders are advised to refrain from both these companies.

MaxCFD

MaxCFD

This particular broker received a warning from the Australian Regulatory Authority, ASIC,  and the Forex Peace Army  which has labelled MaxCFD as a fraudulent broker. Traders who have a live trading account with this broker are advised to immediately withdraw all of their funds because MaxCFD has been linked to numerous shady and fraudulent schemes. These include the following fraudulent activities such as deposit bonuses into trading accounts without first obtaining permission, which leads to the account being frozen or the account balance being counterfeited. All traders should be aware that, while the incentives appear to be more lucrative, they are tied to severe terms and conditions that expose the account and balance to the broker’s whims and wishes.

Panamoney

When it comes to examining brokers and offers, the rule of thumb is that if something seems too good to be true, it usually is, and this is true in the case of the scam broker Panamoney. The Financial Industry Regulatory Authority, or FINRA, issued a warning in 2010 labelling Panamoney as a scamming service. This fraudulent broker provided a few returns before going out of business and never being seen or heard from again. When this happened, many traders still had money in their trading accounts, and these traders were unable to access these funds because the broker’s website was shut down.

panamoney

This fraudulent website was known for deducting cash from trading accounts and forfeiting gains for false ‘early money release requests’ which were not made by the afflicted traders. Some traders have claimed to have lost as much as $160,000 when trading with Panamoney. Panamoney also reserved the right to suspend a trading account at any moment and without notice. The trader would then be unaware that their trading account had been wiped of all funds until they attempted to access it and discovered that it had been barred.

ActiveoptionTrade

Activeoption Trade is a non-regulated broker claiming to be situated in New York. There have been countless reports and negative evaluations and trader reviews about this broker, as well as red flags that raise doubts about its credibility. There are various reviews warning traders that this broker may be a fraud because there is no method to assure the security of trader cash. Furthermore, there is little information accessible about the trading circumstances it provides. 

Therefore, all traders are advised to avoid utilising the services of this broker and instead use a broker that is regulated by respectable organisations that gives clear and straightforward information about its offerings, among other things to consider.

Cannabis Trader

This is yet another broker that has manipulated and persuaded numerous traders to invest in cannabis stock CFDs. This fraudulent website required the first investment of almost 250 US dollars which was to be paid directly to the broker when the trader was being registered. After registering, Cannabis Trader uses proprietary software to place trades on Cannabis Stock CFDs on the trader’s behalf, based on real-time market signals. The broker also provides trading recommendations to help traders learn everything they need to know about trading, as well as encouraging traders to invest in Cannabis Stock CFDs while the market is still open. There are several warnings with this broker, as well as a lot of evident qualities that traders should be aware of when dealing with scam brokers.

Bull Trend Trader

Bull Trend Trader claims to have been established in 1997 and is a Bulgarian-based NDD broker licensed by the Bulgarian National Bank to facilitate the trading of a variety of financial products. This broker has been flagged as a fraud, and traders should avoid it to avoid significant losses. The broker claims to have a US$130 minimum deposit requirement and a number of trading accounts from which traders can choose. PayPal, debit and credit cards, and wire transfers are the only payment options accepted.

Porter Finance

Porter Finance

PorterFinance is part of the Greymountain Management Group, which has received a countless number of Forex Peace Army Court Verdicts. The FPA Trader’s Court has also declared all linked companies to be fraudulent and scams. In an attempt to protect traders from PorterFinance and other shady brokers, the Australian Securities and Exchange Commission has issued a slew of warnings. PorterFinance is also famous  for doing things like trading Forex on behalf of its traders on weekends, preventing traders from withdrawing money from their accounts despite satisfying all of the conditions, and more.

BitOptions 24

According to the BitOptions website, this broker is Europe’s leading online and mobile consumer. It is claimed that they use cutting-edge technology and data to provide comprehensive services to traders in over 17 countries. There is also a provision for a company certificate to demonstrate that they are registered, but BitOptions 24 is a scam that has received multiple warnings. The website and offerings may appear authentic to novice traders, but the truth is that it is a site lacking in specific information and promising unrealistic profits to naïve users.

HFX

Connecting Block

HFX is designated by the Financial Services Authority, or FSA, as an illegal firm engaged in criminal and fraudulent acts and has been identified as a scam broker by Forex Peace Army. HFX is well-known for using trading account funds to make deals without the traders’ approval. This results in significant losses and the clearing of funds in the trading account. There have also been multiple complaints of traders having significant problems withdrawing monies from their accounts. Several traders have also had their accounts frozen after being suspected of trading in an unethical manner.

Prime Trading

It claims to be a licensed investment firm that provides traders with services, as well as investing strategies, products, and other solutions. Prime Trading claims to have over 135 investment teams based in 30 locations across the world that share their knowledge and experiences with traders in order to help them create positive results. The Malta Financial Services Authority, or MFSA, issued a warning to traders, informing them that Prime Trading is a scam. 

Despite claims to offer a guarantee of success, the reality is that there is no assurance that profits will be made when trading. Trading is a dangerous and difficult business that necessitates a lot of time, effort, dedication, research, and consistent efforts. It is not something that a broker, software, or trading bots can supply.

DDFutures

DDFutures logo

This broker claimed to provide significant profits through investment strategies that were believed to be dependable as a Forex and cryptocurrency investing website. After only 25 days, the website offered investors returns of up to 1555 percent on their investment. On the website, there is no explanation of how large profits might be obtained, how the broker operates, or who the broker is. The only information accessible on the website is that DDFutures is a private firm situated in the United Kingdom that specialises in the development of high-return goods. There are a number of red signs that traders should be aware of, and in the case of DDFutures, there were three separate red flags:

  • The promise of easy money
  • The website’s vagueness and lack of company information, as well as
  • An illegitimate licence is one that has been issued by a third party.

NoaFX

There have been few complications for many traders who used NoaFX to deal in various financial products. Traders would trade on worldwide markets and build gains in their trading accounts, but there would be issues and red flags when they attempted to withdraw funds from their accounts. Traders stated that when they emailed NoaFX, they received generic responses that were delivered mechanically. NoaFX had not responded to my repeated attempts to contact them about these difficulties over the course of several months. 

Traders had no way of getting their money back, despite the fact that NoaFX claimed to be regulated by the Financial Markets Authority in New Zealand. However, this was not the case, and traders lost their money. Forex Peace Army has blacklisted NoaFX, and the FPA Traders Court has issued three guilty votes against the broker. Learn more on how to protect yourself by visiting our website!

Watch Out For The Current Forex Scams & Protect Yourself!

This article talks about the various types of scamming techniques which include signal seller scams, Forex robot scams, Forex Broker scams, Forex pyramid schemes and managed forex account scams. Moreover, the best way to avoid all such types of Forex scams is to find a broker that is actually reliable. This is only possible if you conduct thorough research, ask around and hire a broker who has a good reputation and isn’t associated with fraudulent services. 

Let me give you a few tips on how to identify that your broker is a scammer. You need to look out for a number of things, for example if your broker doesn’t respond to you this is definitely a red flag which means that they are not looking out for your best interests.  Moreover, you need to see if there are any complaints related to your broker and if you find even a tiny complaint you should immediately stop working together with that broker. So watch out for Forex trading scams!

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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