Forex Trading Scam

The Forex market is the biggest financial market in the world. It is advantageous for Forex traders if they get the chance to trade with honest and reliable brokers. Unfortunately, scammers have made Forex trading one of the biggest platforms for scams, causing massive losses for traders. Scam Forex brokers cheat innocent traders in many ways — sometimes the lost amount is small, and sometimes it is very large.

Common Scam Tactics

• Unfair rules, bonuses, and withdrawal policies that trap traders after depositing larger amounts.
• Frequent calls pressuring traders to invest higher amounts using fake promises.
• Discouraging traders from learning Forex and urging them to rely solely on the broker’s "expertise".
• Closing the website suddenly and disappearing with investor funds.
• Unauthorized transactions from trader accounts.

Lack of Regulation

Regulation is critical when trading with a reliable broker. Most Forex scams are done by unregulated brokers. Several recognized authorities regulate brokers within their jurisdictions:

Similarly, each jurisdiction has its own recognized regulatory authorities. A legitimate Forex broker is regulated by a well-known authority in its area. Forex traders should always trade with regulated brokers to avoid scams.