Forex Trading Scams – List Of Scam Brokers

Is Forex Trading legit? Is it possible to trade safely? The forex market is challenging, and trading on Forex is difficult & entails risk due to scams, but forex trading is legit. However, you must be aware of the forex scam brokers in order to avoid loss. Forex trading frauds can damage your investment, and it’s impossible to recover money once you fall prey to the fraudsters.  

Moreover, the forex market is volatile and has ample risks. It’s not a place to put all the life savings that you cannot afford to lose. The CFTC has observed and reported a sharp rise in forex scams in recent years. So whenever you want to invest in forex trade, it’s essential to identify trustworthy and reliable brokers and avoid the ones that are not. However, it is quite challenging to spot a scam. So in this blog, we have mentioned some basic red flags that can help you spot a fake broker and also check out the list of fake brokers to avoid dealings with.

Forex Market Scammers

Brokers do not always represent foreign exchange brokers as they are individual players who act like reliable & professional brokers. Often they are expert internet users who can fabricate fake details on the site they have made. However, these fake scammers do not have licenses and are, therefore, not authentic and regulated by authorities. They just made their sites so catchy with the promise of high returns.

As a result, a novice trader signs up and makes a deposit. And here, the exciting part starts, and there is the fraud by the technology and a broker. However, forex scams are of two types:

1.      Fly-by-Night Brokers

Fly-by-night scam brokers are the most common. A group of individuals create an attractive site as a copy of original trading platforms and maintain the home page with attractive promises. They often use fake ratings and attractive graphics to urge people to invest and get high returns. As a consequence, they gather deposits from different investors and disappear overnight and also close their websites. Sometimes, they call it a pre-planned bankruptcy and sometimes don’t even make any statement.

2.      Forex Bucket Shops

This type of scam is more polished and needs more careful preparation, but the potential profit of the fraudster is also higher. For this, they generate a full-grown platform that copies the functionality of leading forex brokers. The trader does not play on the world interbank market but with the people registered on their fake site or even with the platform itself. However, forex bucket shops generate unfeasible conditions so that the site itself remains in the black while people constantly lose their investment.

List of Forex Scam Brokers

List of Forex Scam Brokers
List of Forex Scam Brokers

Since the beginning of online trading, scammers have been making difficulties for investors. Every day you will encounter fake forex scammers or other types of blacklisted brokers looking to fraud unsuspecting victims. Sometimes, they duplicate everything like an original site, and even professionals can’t differentiate between a fake and a real platform. And sometimes, they even make pyramid schemes, and traders unknowingly pull themselves and their friends into this fraud. So, here we have made a list of fake brokers recently reported by different recovery platforms. The list will assist you in avoiding fake brokers.

  3. IGM Forex
  4. IQTrade24
  5. Margin Elite
  6. Matrix Capital Trade
  8. OlympusMarkets
  9. Platinex
  10. Roiteks
  15. TradeWFX
  17. Calibur
  18. FTE FX
  19. PrimeXBT
  20. Tradersway
  21. Circleforex
  22. EvisionFX
  23. CFreserve
  24. InvestTeck
  25. Capital88
  26. 4xincome
  27. TopTradePro
  28. Monfex
  29. UproFx
  30. IC Finance
  31. TraderUR
  32. 70Trades
  33. Tradelnvest90
  34. ADN Markets
  35. Brokerz
  36. FXNobels
  37. Blue Trading
  38. The55thFx
  39. TheCryptoLimited
  40. Pro X Finance
  41. OriginalCrypto
  42. 4xCube
  43. FinmarkFX
  44. Golden FX
  45. SpearTrader
  46. Gulf FX
  47. Bristol Consulting FX
  48. Meta Investing
  49. Swiss Assets FX
  50. iFOREX
  51. Adamant Finance
  52. AGM Markets
  53. Alpha Trade
  54. Atiora
  55. AXEForex
  56. Axes
  58. BFSforex
  59. Boston Merchant Financial
  60. Circle Markets
  61. DV markets
  62. ECMarkets
  63. Evotrade
  64. FinFx
  65. Forex MMCIS group
  66. Forex Optimum
  67. Forex-Metal
  68. ForexCent
  69. ForexCT
  70. FOREXer
  71. FortFs
  72. FrontStocks
  73. FW Markets
  74. Fx-Trend
  75. KonoFX
  76. Capitals Banks
  77. AAFX Trading
  78. MyFintec
  79. 31FX
  80. HBC Broker
  81. GDM FX
  82. Primus Trades
  83. True4X
  84. EuroPrime
  85. SigmaCFD
  86. AlphaCapital
  87. Mplus Social
  88. CFDs100
  89. Roiteks
  90. 365 FX
  91. Boom Xchange
  92. ECM
  93. TeamFX
  94. FXBTG
  95. Option Expert

These scam brokers have been reported as looting investors by using different scams. The list also includes some forex bucket shops & pyramid scheme launchers as well. So, you must avoid scam brokers with no track record or license because they are usually fly-by-night brokers. However, there are lots of scam brokers in Forex, and we can’t give you the name of all scam brokers.

How to Spot Forex Trading Scams?

The most significant thing a person can do to avoid being scammed is properly understand how to trade on the Forex market. However, the most difficult task is to find a reliable broker. As Forex is the largest trading market, it takes years to be master in trade accurately. If anyone claims high returns, don’t fall for them. Below are some warning signs you must consider while selecting a broker.

  1. If any broker promises high returns, don’t believe them because no reliable broker can pledge high profits to the trader.
  2. Another fraudulent dialogue is that you will not encounter risks; it clearly warns of scams.
  3. If you encounter a broker that has no registration by law or does not have any regulation. Don’t trade with them. Hence, you can find the details about regulators on the broker’s site, and you can also check it from the regulator’s website.
  4. Unprofessional activities include calling another way of blacklisted forex scammers who offer you high profits and force you to pay. This is a 100% scam. Don’t deposit any amount.
  5. Many scam brokers point out their top position with some rating tools. But they only display ratings on their site or on a third-party resource that really belongs to the same person and has no influence in the forex market.
  6. Every broker sets its own charges, but scammer operations will be more hostile to these fees and try to loot some additional fees with cheap tactics.
  7. Sometimes, lack of communication is a sign of a scam, as they will not give you many details. If they are not responding to your queries, it’s a red flag.

However, if you encounter any broker that claims the abovementioned promises or is not regulated by any law, then don’t trade with them.

Protect Yourself From Fraudsters

Protect Yourself From Fraudsters
Protect Yourself From Fraudsters

The forex market is the largest trading market where trillions of currency units are traded daily. To protect oneself from fake scammers, you must be very vigilant. Do your own research and check reviews. It will give you insights about a person. Ensure there are no such negative comments. If you find any reviews about scams, contact them to get a clear understanding.

Moreover, it’s also important to check the regulation status of the broker, whether the broker is legally operating in the market or complying with the rules and conditions of the regulator. If they are not, then they may be scammers. However, each regulator body has its own ways of checking forex brokers. You can confirm the reliability of a broker through regulatory bodies such as CFTC registration and NFA membership status of a specific broker. So, you must check the broker’s license before giving them your personal information.

Final Words

To avoid being scammed by fake brokers on the forex platform, you have to do some research to know the history of a broker and its regulatory status. Observe the red flags and ask as many questions as you want before investing. However, the surge of forex trading scams is alarming, and due to that, the genuine broker also faces the issue. That’s the reason many people are afraid to trade in Forex, even with authentic brokers. We have mentioned the list of scammers, so if you come across any fake brokers, let us know in the comment section, and we will include them in a list.

If any broker scammed you, you should file a complaint with us. We have a great team that will help you in recovering your funds.

Leave a Reply

Your email address will not be published. Required fields are marked *