forex scam

What To Consider To Prevent Forex Scams And Fraud

Forex Market is a legitimate trading market which is responsible for generating business worth of USD 5 trillion on daily basis. Forex is beneficial for the spectaculars as it is opened 24 hours and 5 days a week.
This market has some scams too which may swish your money as your eye winks.

How to detect a scam in Forex Trading?

  1. If the forex trader asks you to invest money and is over-promising about the refund in claim of his investment he might be a con.
  2. If he brings alluring offers of great profits with your investments without any loss, then it might be a scam. Because forex trading also involves a great risk of loss of money as well as profits.
  3. A forex scammer will always put pressure on you to deposit money. He will try to manipulate the investor emotionally by the crucial circumstances of world or economy.
  4. If you ask about her previous track record in order to check the ability of the forex trader then he will simply refuse or might take some days to fool you by showing fake details.
  5. He will show vigilance to your legal queries about his company. He will also try not to acknowledge about the details of your money being invested in forex.

Types Of Scams

Unregistered Platform Scam

There are some companies that are not registered and don’t have any kind of legal entity. A proper Forex trading house is always registered according to the country regulation. For example, if broker is from UK he must be regulated by FCA, if from Australia he must be regulated by ASIC. Investors lost their investments because the company is not legal and even they don’t have their official bank account by which transactions can be done.

Scam Through Software

Forex robot scammers lure novices by making promises of big gains with some knowledge and struggle. They might use the figures that misguide the investors so they are convinced by the scammers. Many unregistered companies have their own software which show real prices but trades execute in them are not genuine. Their promises are fraud as no robot can adopt in all markets.

Manipulation Of Pips

It is commonly the spread or pip game. It involves the spread of 8-10 pips which is a large spread to trade instead of having minimal spread of 2 -3 pips only.

High Yield Investment Or Pyramid Scheme Scam

This is one of the most common type of forex trading scams. A forex scammer firstly show you green garden by promising a big refund from to your investment. At initial stages, the investor is bestowed with some ample amount which is actually a small portion from his own invested money. The investor’s money is also distributed among previously existing clients. In this way the investor is prompted by his achievement and he refers his circle to invest. At the end the money collected by all investors is used by the scammer.

Signal Scammer

Some so-called researchers or anyalist scam people by selling some forecast or information that succor the trader in forex trading. They charge a pretty handsome amount as their fee. They make their own un-registered advisory platforms that charge the forex trader daily, weekly or monthly. They use testimonials from allegedly legal sources to achieve trader confidence either by fake reviews on their websites or by hoax cetificates.

Boiler Room Scams

The scammer offers the investor to buy shares of a company which might not privatized it. The company may not exist in real but the investor stuck all his money by buying a large number of shares by finding it cheap at that time. At last, all the money of the investor is being a victim of a scam. The scammers may use a fake company name, fake website or address to fool people.

Rookie Trader Or Broker Failure

A trader is might be new to trading. It is possible that he don’t have a solid trading plan or he don’t know about technical and fundamental analysis of the market. This type of broker is failed to trade properly with your money. And at last when you ask for your money, he will left speechless without any money to pay back to investor.

Commission Scam Of Broker

Some proper registered and legal brokers are habitual to CHURN the commission. They place the trades despite of being concerned of the profit or loss of their client. But the security exchange commission of Pakistan (SECP) fines that brokers who are guilty of this dirty work.

Fix Profit Scam

This is very common type of scam in forex trade. Scammer generally offers the investor a fix and lump sum amount every month after some investment. He also gives the profit for a month or later. In this way the investor starts taking interest in the forex trade and hand over more money to the broker. At last he made a great loss in all of his investment. Forex trading does not provide a fixed profit monthly or annually. You may face bereavement of money some times in it. If a broker gives you offer of a fix profit in claim of an investment then terminate your plan of forex trading.

Steps To Avoid Scam

  1. Always check the company or broker is registered by the country regulation systems. Every country has different regulatory system.
  2. Trade with a minimum amount or try to trade with the demo account to avoid such scams.
  3. Don’t rely on the reviews of related websites or software because the ratings are paid off now a days mostly.
  4. Try to understand the basics of trading and be skeptical for refunds of big amounts. Get educated about forex trading to avoid a fraud.
  5. Never rely on the broker about your trades. Ask your broker about every trade.
  6. Find a reputable broker who has a good background. A person who deals in stock market or commodities might help you a bit more than a person new to forex market.

Here Is a list Of Regulatory Organization In Accordance Of Each Country

United States

  • Commodities and Futures Trading Commission (CFTC)
  • Financial Industry Regulation Authority (FINRA)
  • National Futures association (NFA)
  • US Securities and Exchange Commission (U.S. SEC)
  • Chicago Board of Trade (CBOT)
  • Securities Investor Protection Corporation (SIPC)

United Kingdom

  • UK Financial Services Authority (FSA UK)
  • The Financial Conduct Authority (FCA)
  • The Prudential Regulation Authority (PRA)
  • Financial Services Compensation Fund (FSCS)


Australian securities and investment Commission (ASIC)


Anguilla Financial Services Commission (FSC)


 Eastern Caribbean Securities regulatory Commission (ECSRC)


  • State Committee for Securities (Azerbaijan)
  • Baku Stock Exchange


Securities and Exchange Commission (SEC)


The Financial Services and Markets Authority (FSMA)


International Financial Services Commission (IFSC)

British Virgin Islands

BVI Financial Services Commission (FSC of BVI)


Financial Supervision Commission of Bulgaria (FSC Bulgaria)


  • British Columbia Securities Commission (BCSC)
  • Canadian Investor Protection Fund (CIPF)
  • Financial Transactions and Reports Analysis Center of Canada (FINTRAC)
  • Investment Industry Regulatory Organization of Canada (IIROC)
  • Ontario Securities Commission (OSC)
  • Ombudsman of Banking Services and Commission (OBSI)

Cayman Islands

The Cayman Island Monetary Authority (CIMA)


China securities and Regulatory Commission (CSRC)


Croatian Financial Services Supervisory Agency (CFSSA)


Cyprus Securities and Exchange Commission (CySEC)

Czech Republic

Czech National Bank (CNB)


Danish Financial Supervisory Authority (Danish FSA)


Financial Services Unit (FSU)


  • Dubai Multinational Commodities Centre (DMCC)
  • Dubai Gold & Commodities Exchange (DGCX)
  • Dubai Financial Services Authority (DFSA)
  • Emirates Securities & Commodities (SCA)


The Financial Supervision Authority (FSA)


FIN-FSA of Finland


  • Banque de France
  • Autorite des marches financiers (AMF)
  • Credit Institutions and Investments Firms Committee (CECEI)
  • French Autorite de Controle Prudentiel et de Resolution (ACPR)


Federal Financial Supervisory Authority (BAFIN)


The Hellenic Capital Market Commission (HCMC)

Hong Kong

Securities and Futures Commission (SFC)


Hungarian Financial Supervisory Authority (HFSA)


The Financial Supervisory Authority (FME)


  • Securities and Exchange Board of India (SEBI)
  • Reserve Bank of India (RBI)


Central Bank of Ireland 

Isle of Man

The Financial Supervision Commission (FSC)


The Israel Securities Authority (ISA)


Commission Nazionale per le Societa e la Borsa (CONSOB)


  • Financial Services Agency of Japan (FSA Japan)
  • Japan Securities Dealers Association (JSDA)
  • Japan Investor protection Fund (JIPF)
  • Tokyo Commodity Exchange (TOCOM)


Capital Markets Authority (CMA)



The Financial and Capital Market Commission (FKTK)



The Lithuanian Securities Commission, Bank of Lithuania


Commission de Surveillance du secteur Financier (CSSF)


The Financial Market Authority (FMA)


Malta Financial Services Authority (FSA Malta)



Financial Services Commission of Mauritius (FSC Mauritius)

New Zealand

  • Financial Markets Authority (FMA)
  • Financial Services Provider Register (FSPR)
  • Financial Services Complaints Limited (FSCL)




Securities and Exchange Commission of Pakistan (SECP)


  • Ministry of industry 7 Commerce
  • Superintendencia de marcado de Valories (SMV)


  • Securities & Exchange Commission Philippines
  • The Bangko Sentral ng Philipinas (BSP)


Polish Financial Supervision Authority (PFSA)


Comissao de Mercado de Valories Mobiliarios (CMVM)


Romanian Financial Supervisory Authority (ASF)


  • FFMS in Russia (FCFR)
  • Centre for regulation of Off- Exchange Financial
  • Instruments and Technologies (CRFIN)


  • Seychelles Financial Services Authority (FSA Seychelles)
  • Seychelles Licensing Authority (SLA)


  • Monetary Authority of Singapore (MAS)
  • Singapore Exchange (SGX)


National Bank of Slovakia (NBS)


Comision Nacional del Mercado de Valories

South Korea

Financial Supervisory Commission (FSC)

Sri Lanka

Securities and Exchange Commission of Sri Lanka (SEC)

St. Vincent and The Grenadines


Swedish Financial Supervisory Authority (Swedish FSA)


  • Association Romande des Intermediares Financers (ARIF)
  • Organisme d’autoregulation fonde par le GSCGI
  • PolyReg general Self- Regulatory Organisation
  • Swiss Bankers Association (SBA)
  • Swiss Federal Banking Commision (SFBC)
  • Swiss Federal Department of Finance (SFDF)
  • Swiss Federal Finance Adminstration (SFFA)
  • Swiss Federal Market Supervisory Authority ( FINMA)
  • Swiss National Bank (SNB)



Capital Markets Board – SPK

Our website helps you to save your money and time from all of the frauds and cons in forex trading. If you feel suspicious about any broker or any person who offers you forex trading even with minimal amount of investment contact us or leave a comment on our page.