The Forex market ranks among the most dynamic income-generating financial markets with life-changing potential. It is also why countless Forex scammers attempt to enrich themselves, exploiting misinformed and uneducated beginners. Knowledge is the primary defense against Forex scams, and I will provide a few examples in this Forex scammer list, which covers common scams and how to avoid them.
Top Forex Brokers
What Are Forex Trading Scams?
Forex trading scams are a way for opportunists to enrich themselves on the back of the knowledge vacuum of the $7.5+ trillion daily turnover of the Forex market.
Not every Forex scammer list identifies scams accurately, as they often list off-shore brokers as a scam. Some of the best-known and most massive scams unfolded in tier-1 regulatory jurisdictions.
With Forex scams popping up daily, what should Forex traders do?
- Always research the reputation and history of a Forex broker, as a regulatory license does not offer protection against Forex scams. I always recommend Forex brokers with 10+ years of operational experience and a spotless regulatory record.
- Avoid regulated brokers with a history of fines, as they show that the management team attempted to mislead traders.
- Never trade with unregulated Forex brokers.
- Do not rely on social media as a source of information.
Signs You Might be Dealing With a Forex Scam
When it comes to identifying the various types of Forex scams, you will find that any list of well-known scammers shares several characteristics that will help traders spot danger.
Here are signs that you might be dealing with a Forex scam:
- Claims of massive profits in short periods with little capital
- Requests for money
- Request for phone calls
- Creating a sense of urgency that does not exist in Forex
- Social media accounts displaying a lavish lifestyle
A List of Common Scams
- Clone firms of reputable Forex brokers
- Social media scams
- Fake signal providers
- Scam fund managers
- Fake copy trading services
A List of Potential Scam Brokers to Avoid
Below are examples from my Forex scammer list to help traders understand what a Forex scam can look like.
Broker | Type of Forex Scam |
|---|---|
DD Futures | Eight-tier hedge fund Ponzi scam promising unrealistic returns in a short period |
Prime Trading | Does not allow traders to withdraw funds while claiming to resolve the issue or asking for more deposits |
Tradorax | Binary options scam, blacklisted by several global regulators |
PanaMoney | High-yield investment program (HYIP) scam claiming outsized returns for managed Forex accounts |
NAS Broker | Typical scam broker operation, denying withdrawals or implementing unreasonable requirements to process withdrawals, splitting orders and applying tremendous slippage, stop-loss hunting, demo environment presented as live trading conditions |
Bottom Line
Forex trades must conduct due diligence with in-depth knowledge and avoid using social media as an information source. While tier-1 jurisdictions have superior protection, traders may need to accept less competitive trading conditions. Less attractive trading conditions can result in a significant loss of earnings potential but the losses from a Forex scam can be far higher. Finding a Forex broker is not about a regulator that can help you recover funds if you get scammed but about avoiding a scam and trading with a reliable and reputable Forex broker.
