HFM information and reviews
Octa information and reviews
FXCC information and reviews
FxPro information and reviews
FBS information and reviews
Vantage information and reviews

Scam Forex Brokers

The world of Forex trading, with its promise of high returns, attracts millions of investors worldwide. However, this lucrative field also lures numerous scammers looking to exploit unwary traders. Understanding the importance of avoiding Forex Scams and knowing how to identify them is crucial for anyone involved in or considering Forex trading. This section lists  scam forex brokers and delves into the main categories of scam brokers, offering insights into their operations and the red flags that can help traders avoid falling victim to these schemes.

The Importance of Avoiding Forex Scams

  • Financial Loss: The most direct impact of falling for a Forex scam is financial loss. Victims can lose their entire investment, and in some cases, end up owing money due to leveraged positions.
  • Emotional Distress: Beyond financial loss, being scammed can lead to significant emotional and psychological distress, affecting one's well-being and trust in future investment opportunities.
  • Time Wastage: Recovering from a scam, both financially and emotionally, can consume a considerable amount of time, during which victims might miss out on legitimate investment opportunities.
  • Legal Complications: In some instances, engaging with scam brokers can lead to legal issues, especially if the broker operates in a regulatory grey area.

Classification of Scam Brokers

Scam brokers in the Forex market can be classified into several categories, each with its own set of deceptive practices. Understanding the classification of these scam brokers is vital for anyone navigating the Forex market. 

Signal Sellers

Signal sellers occupy a unique niche in the Forex scam ecosystem. They claim to offer expert advice or "signals" on when to buy or sell currency pairs, supposedly based on market analysis or insider information. These services are often marketed with the promise of significant profits, requiring traders to pay a subscription fee, a one-time purchase price, or a percentage of profits.

Characteristics of Signal Sellers

  • Promises of High Accuracy: They often guarantee high success rates that seem too good to be true.
  • Subscription Fees: Traders are asked to pay recurring fees to access these signals.
  • Lack of Verifiable Track Record: Signal sellers rarely provide a transparent and verifiable history of their trading performance.

High-Yield Investment Programs (HYIPs)

HYIPs are essentially Ponzi schemes dressed up in Forex market attire. They promise exceptionally high returns on investment over incredibly short periods, claims that are unsustainable and unrealistic in any legitimate financial market. These schemes operate by paying earlier investors with the money brought in by new investors, creating a cycle that eventually collapses once there are not enough new participants.

Characteristics of HYIPs

  • Unsustainable Returns: Promises of exponential growth in investments within a very short timeframe.
  • Recruitment Incentives: Often, there are incentives for participants to recruit others into the scheme, further fueling the Ponzi structure.
  • Evasiveness About Strategies: Vague or secretive about the investment strategies being used.

Broker Manipulation

This category involves Forex brokers who manipulate their trading platforms to ensure that traders end up losing money, thereby increasing the broker's profits. These manipulations can take various forms, including creating artificial slippages to worsen execution prices, causing delays in order execution to benefit from price movements, or unjustly adjusting spreads.

Characteristics of Broker Manipulation

  • Slippage Manipulation: Traders experience consistent negative slippage, never in their favor.
  • Order Execution Delays: Orders are executed at prices that are not optimal for the trader, often explained away by technical issues.
  • Spread Widening: Unexplained and inconsistent widening of spreads, particularly during times when it benefits the broker.

Phony Trading Programs

In this scam, fraudsters sell automated trading systems or robots, claiming they can consistently outperform the market with little to no risk to the investor. These programs are advertised as being based on sophisticated algorithms or proprietary techniques, but in reality, they often fail to deliver the promised results and may even be designed to generate losses.

Characteristics of Phony Trading Programs

  • Guaranteed Profits: Claims of guaranteed profits or extremely high performance.
  • Lack of Independent Verification: Absence of credible, independent back-testing or proof of the system's performance.
  • High Upfront Costs: Significant costs associated with purchasing the system, with no refund policy or guarantees.

Avoiding Scam Forex Brokers

Avoiding these scam brokers requires vigilance, due diligence, and a healthy skepticism of anything that seems too good to be true. Prospective traders should:

  • Verify the regulatory status of brokers or entities.
  • Seek out independent reviews and testimonials from other traders.
  • Be wary of any service that promises guaranteed returns or requires an upfront fee without offering verifiable evidence of performance.
  • Test any system with a demo account before committing real funds.

By understanding the landscape of scam brokers within the Forex market, traders can arm themselves with the knowledge necessary to navigate this challenging environment safely. It's crucial to remember that while the market offers legitimate opportunities for profit, it also demands a disciplined approach to risk management and a commitment to continuous learning.

How to Identify and Avoid Forex Scams

Being able to identify and steer clear of these scams is crucial for anyone looking to trade in the Forex market. Use a comprehensive approach to recognizing and avoiding Forex scams, ensuring traders can protect their investments and trade with confidence.

Verify Regulatory Status

The first and perhaps most critical step in avoiding Forex scams is to verify the regulatory status of the brokerage or trading platform. Reputable brokers are registered with and regulated by financial authorities that ensure compliance with legal and ethical standards. These authorities include the U.S. Commodity Futures Trading Commission (CFTC), the UK Financial Conduct Authority (FCA), and other similar bodies worldwide.

How to Verify

  • Check the Broker's Website: Regulatory information is usually displayed at the bottom of a broker's homepage.
  • Use Online Databases: Regulatory bodies provide online databases where you can look up the regulatory status of brokers.
  • Contact the Regulatory Body: If in doubt, contact the regulatory body directly to confirm a broker's status.

Research the Broker

Before committing to a Forex broker, it's essential to conduct thorough research. This involves looking up reviews and feedback from other traders. The internet hosts a wealth of forums, review sites, and social media platforms where traders share their experiences and insights about different brokers.

Effective Research Practices

  • Read Multiple Sources: Don't rely on a single source for reviews. Look for a pattern of feedback across various platforms.
  • Beware of Fake Reviews: Be mindful that some reviews might be fake, either overly positive reviews posted by the broker themselves or negative ones by competitors.
  • Check for Recurring Complaints: Pay special attention to any recurring issues mentioned by multiple traders, such as problems with withdrawals, order execution, or customer service.

Demo Accounts

Most reputable brokers offer demo accounts, allowing traders to test the platform using virtual money. A demo account is an invaluable tool for assessing the broker's trading platform, order execution speed, spread sizes, and other trading conditions without risking real money.

Benefits of Demo Accounts

  • Platform Familiarity: Get accustomed to the platform's tools and features.
  • Order Execution: Test how quickly and accurately orders are executed.
  • Risk-Free Testing: Evaluate the broker's services without financial risk.

Read the Fine Print

The terms and conditions, including withdrawal conditions and fees, are where brokers often hide important details that could impact your trading experience and financial outcomes. Reading the fine print is vital to avoid unwanted surprises after you've already invested money.

Key Details to Look For

  • Withdrawal Conditions: Check for any conditions or fees associated with withdrawing your profits.
  • Account Fees: Look for information on account maintenance fees, inactivity fees, or other charges.
  • Leverage and Margin Requirements: Understand the broker's policies on leverage and margin calls, as these can significantly affect your risk level.

Use Common Sense

Ultimately, a healthy dose of skepticism is one of the best tools against Forex scams. If a broker or an offer seems too good to be true, it likely is. High returns with low or no risk, guaranteed profits, and other too-good-to-be-true promises are classic signs of a scam.

Applying Common Sense

  • Question Unrealistic Promises: Be wary of anyone promising guaranteed returns or secret trading strategies.
  • Verify Claims: Independently verify any claims made by the broker or trading program.
  • Seek Professional Advice: If unsure, seek advice from a financial advisor or experienced trader.

Forex Scams since 2006

# Forex Broker Year Status Reviews Type
1101investing Information & Reviews101investing2016Scam 104 Reviews and comments STP
23TG Brokers2011Scam 7 Reviews and comments Broker
34XP2007Scam 1 Reviews and comments Broker
4770capital Information & Reviews770capital2010Scam 3 Reviews and comments Broker
5ABInvesting Information & ReviewsABInvesting2020Scam 65 Reviews and comments Broker
6ACFX2007Scam 35 Reviews and comments Broker
7ACM Information & ReviewsACM2002Scam 274 Reviews and comments Broker
8Adamant Finance2015Scam 0 Reviews and comments Broker
9AFB FX2000Scam 7 Reviews and comments Broker
10AFX Capital Markets2010Scam 6 Reviews and comments Broker
11AL Trade Information & ReviewsAL Trade2003Scam 6 Reviews and comments Broker
12Armada Markets2011Scam 9 Reviews and comments Broker
13Askobid2000Scam 41 Reviews and comments Broker
14AtlaseForex2010Scam 3 Reviews and comments Broker
15Atom82013Scam 1 Reviews and comments Broker
16AussieTrust Information & ReviewsAussieTrust1997Scam 53 Reviews and comments ECN
17Berkeley1986Scam 3 Reviews and comments MM
18Bforex2009Scam 4 Reviews and comments Broker
19BNFX Information & ReviewsBNFX2010Scam 4 Reviews and comments STP
20Broco1998Scam 14 Reviews and comments MM
21Brokereo Information & ReviewsBrokereo2020Scam 104 Reviews and comments Broker
22BTG Capital Information & ReviewsBTG Capital2021Scam 123 Reviews and comments STP
23CapitalXP2015Scam 64 Reviews and comments Broker
24CBFX Markets2006Scam 13 Reviews and comments Broker
25CitiFX Pro2008Scam 5 Reviews and comments Broker
26Citypoint Trading Information & ReviewsCitypoint Trading2008Scam 3 Reviews and comments Broker
27CMS Forex1999Scam 11 Reviews and comments Broker
28CMSTrader Information & ReviewsCMSTrader2012Scam 7 Reviews and comments ECN
29COESfx1999Scam 1 Reviews and comments Broker
30Core Spreads Information & ReviewsCore Spreads2014Scam 2 Reviews and comments Broker
31Crown Forex2006Scam 37 Reviews and comments ECN
32DBFX2006Scam 1 Reviews and comments Broker
33DF Markets Information & ReviewsDF Markets2010Scam 4 Reviews and comments Broker
34DMM FX Australia2016Scam 5 Reviews and comments Broker
35ETFinance Information & ReviewsETFinance2018Scam 40 Reviews and comments STP
36EverFX Information & ReviewsEverFX2016Scam 54 Reviews and comments Broker, ECN
37eXcentral Information & ReviewseXcentral2019Scam 214 Reviews and comments Broker
38Exto Capital2007Scam 3 Reviews and comments Broker
39Falcofx2008Scam 1 Reviews and comments Broker
40Falcon Brokers2012Scam 5 Reviews and comments Broker
41Finex2006Scam 49 Reviews and comments Broker
42Finexo Information & ReviewsFinexo2003Scam 6 Reviews and comments Broker
43FinFX2010Scam 4 Reviews and comments Broker
44Finmarket Information & ReviewsFinmarket2015Scam 69 Reviews and comments Broker
45Finotec Information & ReviewsFinotec1998Scam 16 Reviews and comments Broker
46Forex MMCIS2007Scam 0 Reviews and comments Broker
47Forex-Market2009Scam 6 Reviews and comments Broker
48ForexCycle2006Scam 2 Reviews and comments Broker
49Forexite Information & ReviewsForexite1999Scam 5 Reviews and comments Broker
50ForexTrading2011Scam 4 Reviews and comments Broker
51ForexYard1999Scam 6 Reviews and comments Broker
52Formax2014Scam 0 Reviews and comments STP, ECN
53FortFS Information & ReviewsFortFS2010Scam 83 Reviews and comments Broker, ECN, STP
54FX Giants Information & ReviewsFX Giants2015Scam 15 Reviews and comments MM
55FX Solutions2001Scam 28 Reviews and comments Broker
56FX Universal2011Scam 2 Reviews and comments Broker
57FXA Securities2000Scam 1 Reviews and comments Broker
58FXall2012Scam 4 Reviews and comments Broker
59FxCast2006Scam 4 Reviews and comments Broker
60FxCompany2011Scam 1 Reviews and comments Broker
61FXdirekt Bank2011Scam 1 Reviews and comments Broker
62FxNet Information & ReviewsFxNet2012Scam 33 Reviews and comments Broker
63FXTG2005Scam 3 Reviews and comments Broker
64FXTSP2006Scam 3 Reviews and comments Broker
65Gain Capital Information & ReviewsGain Capital1999Scam 26 Reviews and comments Broker
66GFT Forex Information & ReviewsGFT Forex1997Scam 26 Reviews and comments Broker
67GO Markets2000Scam 3 Reviews and comments Broker
68GulliverFX2014Scam 3 Reviews and comments Broker
69HiWayFX2014Scam 14 Reviews and comments Broker
70HMS Markets Information & ReviewsHMS Markets1972Scam 4 Reviews and comments Broker
71Hotspot FX2010Scam 8 Reviews and comments Broker
72IBCFX2012Scam 5 Reviews and comments Broker
73Ikon-Royal2006Scam 4 Reviews and comments Broker
74InterbankFx2006Scam 10 Reviews and comments Broker
75InvestiGram Information & ReviewsInvestiGram2019Scam 110 Reviews and comments Broker
76InvestLite Information & ReviewsInvestLite2020Scam 10 Reviews and comments STP
77Investtechfx2006Scam 7 Reviews and comments Broker
78ITradeFX2006Scam 11 Reviews and comments Broker
79ITrader Information & ReviewsITrader2013Scam 3 Reviews and comments STP
80JFX Information & ReviewsJFX2011Scam 4 Reviews and comments Broker
81LQD Markets2006Scam 2 Reviews and comments Broker
82Mada FX2000Scam 2 Reviews and comments Broker
83Marketiva2009Scam 3 Reviews and comments Broker
84Markets Cube Information & ReviewsMarkets Cube2011Scam 10 Reviews and comments Broker
85MasterForex  Information & ReviewsMasterForex 2006Scam 50 Reviews and comments Broker
86Maxi Forex Information & ReviewsMaxi Forex2008Scam 6 Reviews and comments Broker
87MAYZUS2008Scam 2 Reviews and comments Broker
88MB Trading1999Scam 3 Reviews and comments Broker
89Mega Trader FX Information & ReviewsMega Trader FX2000Scam 18 Reviews and comments Broker
90MGI2006Scam 5 Reviews and comments Broker
91MIG Bank2003Scam 5 Reviews and comments Broker
92Money Gram2006Scam 10 Reviews and comments Broker
93MoneyForex2010Scam 0 Reviews and comments Broker
94MoneyForex2006Scam 7 Reviews and comments Broker
95MRC Markets2002Scam 151 Reviews and comments Broker
96Nas broker2013Scam 5 Reviews and comments Broker
97Noble Trading1999Scam 3 Reviews and comments Broker
98NordMarkets2006Scam 5 Reviews and comments Broker
99NorthFinance2006Scam 35 Reviews and comments Broker
100Ntwo Capital Markets2004Scam 0 Reviews and comments Broker
101OBRinvest Information & ReviewsOBRinvest2012Scam 3 Reviews and comments STP
102ODL2010Scam 8 Reviews and comments Broker
103OptionTrade2004Scam 10 Reviews and comments Broker
104PIPTrade 2000Scam 2 Reviews and comments Broker
105Prime 4X2006Scam 26 Reviews and comments Broker
106PrivateFX2015Scam 3 Reviews and comments Broker
107Realtime Forex Information & ReviewsRealtime Forex2009Scam 6 Reviews and comments Broker
108RetailFx2006Scam 1 Reviews and comments Broker
109Spot Trader2008Scam 4 Reviews and comments Broker
110STIFX1998Scam 19 Reviews and comments Broker
111STO2010Scam 0 Reviews and comments MM
112STOCK.com2004Scam 7 Reviews and comments Broker
113Stratton Markets Information & ReviewsStratton Markets2018Scam 5 Reviews and comments STP
114Sunbird2005Scam 5 Reviews and comments Broker
115TFI Markets1999Scam 6 Reviews and comments Broker
116The Uptrend Center Information & ReviewsThe Uptrend Center2002Scam 167 Reviews and comments Broker
117Trade122015Scam 71 Reviews and comments Broker
118TradedWell Information & ReviewsTradedWell2020Scam 78 Reviews and comments Broker
119TradeFort2010Scam 6 Reviews and comments Broker
120TradeFreedom2010Scam 1 Reviews and comments Broker
121TradexFx2005Scam 7 Reviews and comments Broker
122UFX Information & ReviewsUFX2007Scam 7 Reviews and comments Broker
123United World Capital Ltd 2001Scam 11 Reviews and comments Broker
124Vinson Financials Ltd2012Scam 4 Reviews and comments STP, MM
125Vlom Information & ReviewsVlom2019Scam 83 Reviews and comments MM
126WestCapFX2006Scam 14 Reviews and comments Broker
127xCFD2013Scam 3 Reviews and comments Broker
128XForex2003Scam 7 Reviews and comments Broker
129YoutradeFX2011Scam 6 Reviews and comments Broker
130Zecco2011Scam 6 Reviews and comments Broker

* Forex Broker Rating accepts no liability for any errors in the information, trading conditions and forex reviews. For the most recent information please visit the Forex Broker's site. If you want to compare several brokers or analyze their trading conditions, please use our free comparison and research tool which will vividly show you the main benefits of the best forex brokers.

The Forex market, while offering legitimate opportunities for profit, is also rife with scams targeting unwary traders. By taking a proactive approach — verifying regulatory status, researching brokers, testing with demo accounts, reading the fine print, and using common sense — traders can significantly reduce their risk of falling victim to scams. Remember, in the world of Forex trading, being well-informed and cautious is your best defense. By staying informed, vigilant, and skeptical, traders can protect themselves from falling victim to these fraudulent schemes, safeguarding their investments and well-being in the process.
MultiBank Group information and reviews
MultiBank Group
XM information and reviews
FP Markets information and reviews
FP Markets
FXTM information and reviews
AMarkets information and reviews
BlackBull information and reviews

© 2006-2024 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.