Table of Contents
There are no boundaries when it comes to scams. Similar is the case with forex scams, there has been a massive rise in forex scams, and hence many companies have been getting blacklisted for that very reason. Investment scams make large payments, rapid money, or guaranteed profits. Always be wary of investment offers that promise a high return with little or no risk — if it looks too good to be true, it definitely is – and is almost certainly a scam. Even in 2022, naive traders are being duped by shady Forex brokers, but the good news is that this is no longer the norm but rather on the fall. There are numerous primary reasons for this shift. Blacklists of Forex scam brokers are now kept up to date and regularly uploaded by Internet users. Brokers who engage in forex scams are not usually represented by the brokers themselves. They are most frequently individual players who do not have corporations but position themselves as brokers. They have frequently experienced Internet users capable of fabricating misleading information on the site they developed.
The owners of such scam sites lack a license and hence are not properly regulated. Sometimes they don’t even understand the basics of the Forex market. However, not everything is clear to a beginner trader who has not studied economics or finance. For example, a person may visit a nicely designed website and notice appealing profit claims as well as words or phrases such as “spread” and “rapid execution of orders.” For the uninitiated, this could lend legitimacy to the dishonest website. As a result, a person registers up, makes a deposit — and now comes the most intriguing part — and there is technological deceit.
There are Three Sorts of Forex Scam Brokers’ Who Are Blacklisted
1. Inexperienced brokers
Until recently, this was the most common sort of scam. A site is created by a group of people (or even one person). Often, it is only a landing page that encourages people to invest and make a lot of money. PAMM accounts may also be included. Scammers don’t care what they say; what matters is that they lure people and their money. As a result, they may collect deposits from traders and close the site, declare pre planned insolvency, or make no disclosures at all.
2. Forex exchange stores
This form of scam is more polished and takes more meticulous planning, but the scammer’s potential payoff is also greater. In this situation, they build a full-fledged platform that mimics the features of top Forex brokers. The trader does not compete on the global interbank market but rather with other traders who are only registered on their fake website or perhaps with the platform itself. Naturally, Forex bucket shops establish impossible conditions in order for the site to remain profitable while traders continue to lose money.
Lost money to online fraud? We will recover your funds !
3. Ponzi schemes
This is possibly the most well-known sort of scam that is utilized everywhere, not just in the foreign exchange industry. This type of scam has nothing to do with Forex brokers. It is about the company posing as a broker while, in fact, it just collects deposits from traders frequently without even seeming to be active on the interbank market. They just keep making bogus promises and chanting slogans. This form of scam is now less widespread than others. Forex robot scammers entice newcomers with the promise of large profits with little work or understanding. They may use fictitious or deceptive numbers to persuade customers to purchase their product. Their claims are faulty because no robot can adapt to and succeed in every environment and market. Professionals typically utilize software only to analyze past performance and discover trends. All software should be formally and independently tested, but be wary of believing the reviews themselves because they can be bought. If their product accomplished exactly what they claimed, they would not be selling it and would instead be utilizing it exclusively.
The unfortunate reality of the foreign exchange trading market is that there are those out to defraud unsuspecting traders who are attempting to develop their portfolios. Whether it’s insider trading or another form of market manipulation, trading fraud may take many forms – and it can even have ties to the larger stock markets. As a result, it’s important to stay up to date on what the brokers you’re considering are up to – and to make decisions to avoid those that don’t provide the level of safety and security you demand.
Discover Blacklisted Forex Firms to Stay Away From
The notion of easily earning money through internet trading is appealing, but it is not as simple as it appears. There are also hundreds of forex scammers in the industry who prey on all types of traders. Although no one can promise you 100 percent, you should avoid brokers and middlemen with a hazy past. Another thing we want you to be aware of is that some scammers use long-term planning. Because they do not target every trader, they can go undiscovered for years. So, just because one of your friends is doing business with a broker safely does not mean you will be safe as well. You may be wondering who you should trust after reading the preceding lines. To answer your query, you can only trade with a broker after consulting with a respected firm such as Claim-Justice. However, there are some brokers with whom you should never, ever work. We’ve compiled a list of brokers with the worst track records. The following is the blacklist.
1. UPME Group
The merchant appears to be too nice to be real. We’ve all seen the infomercials in which a man stands in front of a great automobile and a mansion, bragging about how he made millions in the real estate market. It appears to be both corny and false. You would never fall for that!
Except that’s exactly what you get from so-called gurus. They entice you with promises of wealth and grandeur fit for a king. They boast about how simple it is to make money and how soon you may become a millionaire. They frequently offer their thoughts in relatively basic language that makes sense on the surface. Their techniques may occasionally work.
The harsh reality is that trading does not become second nature overnight. Many experts require years and often numerous blown-up accounts before they can consistently earn a profit. Sure, there are many traders looking to earn quick money in the market. More often than not, this is due to lucky timing rather than a strategy or trader that can outperform at such a significant level for extended periods of time.
Lost money to online fraud? We will recover your funds !
We frequently have difficulty when they straddle the border between believability and plausibility. What they offer appears almost too wonderful to be true, but it is still within the realm of possibility. However, spotting these traders is easier than you would think. There are some basic indicators that everything isn’t right, such as a success rate of more than 90%, a lack of tangible proof, excess returns, and so on. Here’s what people have to say about this company.
“Respected all I am telling about the company www.fxupme.com this is a scam company and not paying my money or withdrawal I have opened an account with fxupme 8034650 is my account number in this account I have my initial deposit + profit = 2300 USD I make a request for withdrawal, and they delay my withdrawal, and at the end, they refused me and closed my account I have mail to this company and my account manager Halena but no reply for my mail from anyone and disabled my account,” says Kashif k Khan on https://www.forexpeacearmy.com/forex-reviews/8163/upmegroup.com.
On another platform (https://tradersunion.com/brokers/forex/view/fxup_me/#review), prabhukanth1 states,
“Transferred $ 6,500 to UPME GROUP. I traded for half a year, and I wanted to withdraw my capital. I made an application for withdrawal. But they blocked my account and called my actions fraudulent. I fought with UPME GROUP for a long time, but my money was never returned.”
Hence, it can be concluded that the forex company UPME in fact, is running a scam!
2. FX VIP
A look at their website reveals that they are not governed by any regulatory body. That is a VERY BIG RED FLAG!! That should be reason enough not to invest with them. They also collaborate with websites that provide “Automated trading software,” which is another red flag because these websites are renowned for scamming schemes. So Vip Forex Pro is just another unregulated forex broker, which means clients are not protected, and it is very probable that they will get away with your hard-earned money with no governing organization to hold them accountable. The bodies of brokers who came and left litter the history of Forex. When vast areas of the market see outlier fluctuations, they frequently fail to hedge. However, it does not take a black swan catastrophe to drive brokers out of business. There are many people who work on the outskirts, appear to be legal, and then disappear the next day. Furthermore, there are many brokers who are legally compliant but do not act in the best interests of their clients. So, with that in mind, let’s go over some of the warning signs of a broker scam.
One of the most important things to check for in any broker is who and where they are regulated. The Commodities and Futures Trading Commission, for example, regulates brokers in the United States (CFTC). The Financial Conduct Authority exists in the United Kingdom (FCA). Brokers that operate in different jurisdictions will frequently hold multiple certifications from various government authorities.
Any broker who has been in business for a while will have customer reviews for you to read. However, if they work with professional and institutional clientele, you can request a referral list. These are always the most reliable sources of information about a broker’s reputation.
Customer service and support
Although automation does a lot these days, you should be able to chat with a person no matter who you’re working with. While brokers do not have to be available 24 hours a day, they should be available when you need them. They should also have a built-in dispute resolution system to manage larger difficulties.
Fee arrangements that are transparent
Not every broker is open about how they make money. Any professional broker should make it readily apparent where they collect costs, whether straight commission, spread-based, or otherwise. You should always be able to determine whether the broker is an A-Book or B-Book that takes the opposing side of the trade. If they don’t recognize the distinction, you should probably back off.
In accordance with https://www.forexpeacearmy.com/forex-reviews/9821/www.gainsy.com, gainsy.com is a scam. It gives the readers a warning as a third FPA Traders Court guilty vote was cast against Gainsy in July 2015. Gainsy has been blacklisted by the FPA until these and other concerns are remedied. The FPA advises AGAINST making a deposit with Gainsy. If you have money there, the FPA advises you to withdraw it as soon as possible. Investing online, particularly in the Foreign Exchange Market, can be dangerous. Forex scams abound in the world of online trading, fueled by scammers who benefit from the anonymity of dealing online. Recognizing a risky broker in advance can save investors from catastrophic consequences. Investing online, often known as trading (buying, selling, or investing in financial assets), is as simple and straightforward as it is perilous.
The combination of internet/retail brokers (brokers that cater to the needs of individual consumers) has made trading possible for anybody, anywhere. This has made it possible for everyone, regardless of skill level or financial resources, to invest, creating opportunities for both respectable brokers and scam artists. Foreign exchange fraud is defined as any business approach intended to mislead traders by convincing investors that trading on the foreign currency market will result in large returns. The foreign currency market is a zero-sum game, which implies that while one individual profits, someone else suffers. A legal protection mechanism has been formed for each case of Forex exchange fraud, consisting of lawyers skilled in trading, particularly Forex, who explore all potential means to recover money for investors who have lost money through trading.
4. Global Clearing Group LTD
Receiving unsolicited phone marketing calls (also known as cold calling) pitching everything from vacation packages to TV subscriptions is now standard practice for anyone with a phone. Although many of these conversations conclude with a polite message saying the person is not interested. However, an average of 1% to 4% of these calls are successful, and this little number is enough to keep the practice going. A Forex phone hoax will usually try to get your attention right away – within seconds, the caller will either 1. propose an opportunity to invest almost nothing and obtain inflated gains, or 2. identify themselves as a professional trading expert representing a Forex firm. Although some of these calls may be legitimate, the majority are Forex scams. E-mail, SMS, and WhatsApp messages from fraudulent brokers are becoming increasingly popular, similar to Forex phone scams. Once again, it is critical to remain watchful in the face of any unsolicited messages, regardless of format.
Global Clearing Group is considered a risky site as it is an unlicensed broker. Furthermore, the company has been suspected of being a hoax. We researched the firm and found no authorization or registration of the address; therefore, the company appears to be highly suspect and may be operating from a completely different place.
Ranga on https://tradersunion.com/brokers/forex/view/global_clearing_group_ltd/#review states:
“Global Clearing Group Ltd are scammers, moreover, experienced scammers. They have been blacklisted on all sites and ratings since 2010. But despite this, they continued to work and deceive customers. And only recently is the site 2pipforex.com. But the money of the clients of the Global Clearing Group was stolen.”
5. Global Markets Group GQFX
GQFX Brokerage is a financial services firm specializing in Forex and CFD trading. The organization provides its services all around the world using a simple but effective trading terminal. GQFX is governed by the International Financial Services Committee of Belize (IFSC) and hence follows tight guidelines. GQFX provides modern trading technology to users, as well as very competitive trading conditions and tight spreads on CFDs and other commodities. GQFX promises its customers a strictly regulated and secure trading environment.
GQ X is a Belize City, Belize-based online trading broker operated by GQ Capital Inc. and located at 3289 Sarstoon Street. They may be reached at 18008393105 or via e-mail at [email protected] / [email protected] Gqfx.com is their website address. It is also important to note that this broker is unregistered and based in another country. When looking for brokers to work with, the first and most significant step should always be to discover their certification (s). This will inform you whether GQFX is regulated by a central body or if it is offshore and/or unregulated.
When a broker is unregulated or regulated by an institution located outside of your jurisdiction, you have little to no legal remedy if your funds are compromised. Complaints about the theft can only be filed if the broker is regulated by the regulation in your jurisdiction. Regulatory authorities that issue brokerage licenses include:
- Cyprus Securities and Exchange Commission (CSEC)
- The Financial Conduct Authority (FCA)
- The Australian Securities and Investments Commission (ASIC) is a regulatory body in Australia.
If a trader is not authorized by the regulatory authorities in your jurisdiction, they are likely unregulated and should be avoided. Even if the brokerage is regulated, avoid it if the regulator is based in another country.
The first step in protecting yourself from fraudulent internet parties is to conduct extensive due research on the firms and organizations to which you intend to transmit payments. There have almost certainly been other people who have utilized the same service and have offered their ideas and feedback online on numerous forums.
Following some investigation on several social media platforms (Facebook, Twitter, and Instagram), as well as online trading forums, a common pattern arose in which individuals were disappointed with their experience with GQFX. Based on this user feedback, it appears that GQFX is not a reliable broker, and as a result, extreme caution should be exercised before investing through their brokerage platform. There are many brokers out there who use fictitious company names or engage in other fraudulent activities. A little preparatory study can go a long way toward safeguarding you and your assets.
6. Liquid Markets
Founded in 2006 as Liquid Markets, the company swiftly established itself as a prominent European online Forex and CFDs Broker with an emphasis on offering quality brokerage services to individual and corporate clients via its customized MetaTrader 4 platform. The broker “Liquid Markets” has turned into a con artist. This company has stopped meeting its duties to customers and partners, as well as paying payments. In a review on liquid markets, Bilabrain states, “Liquid Markets are seasoned con artists. They’ve always been trading against the client. Many reports on the Internet describe how Liquid Markets distorted price charts, prohibiting traders from trading normally.” The broker “Liquid Markets” has turned into a con artist. This company has stopped meeting its duties to customers and partners, as well as paying payments.
Forex scams can be found through website adverts or on social networking platforms like Facebook or Instagram. They are frequently accompanied by photographs of well-known business or entertainment figures who have almost never allowed the use of their image. These photos are utilized because they subconsciously create curiosity, causing the user to click and learn more. Another strategy utilized in these marketing schemes is the “from rags to riches” narrative, which uses images to tell the story of someone who formerly struggled to make ends meet but is now living the highlife owing to Forex investments.
7. Lucror FX
Lucror Capital Markets LP is an Auckland, New Zealand-based privately held brokerage firm. Lucror FX is a member of the Financial Services Providers Register (FSPR) as well as Financial Services Complaints LTD (FSCL).
Selikhon on the https://www.ratingfx.com/lucror states, “I have been trading with LucrorFX for five months now. The requotes and withdrawals are really awful. Last month, I had a few trades open when I was on a good trend or a recovery from a bad trade; all of a sudden, my trades were closed. Besides this, they simply have no concept of customer service. They also have a limited payment system.”
In another review on the https://forex-up.com/broker-reviews/lucrorfx-review, Novice states, “My mind recoils at the memory of the day I bought into an ad on some website and followed the link with a promise of additional income. They promised passive income but simply vanished without a trace in the end, with a bag of somebody else’s money. My $1,070 was also in that bag. After a negative experience with this company, it was difficult for me to trust Forex brokers again, but now, I’ve been working with Swissquote for two years, and I’m happy with the quality. There are many good brokers with reliable regulations. Just don’t be too lazy to check everything!” Hence it can be established that this broker is a scam. As Novice states, it is crucial to fact-check as if you are lazy to check into the legitimacy of a broker, it is best you do not invest in it at all.
Trading in Forex and CFDs often takes time to become profitable, so be skeptical of any forex broker who offers the chance to “get wealthy quick” or to make large and fast returns on small deposits. Earning money in the Forex market is possible, but it is rarely simple or quick. Phony Forex brokers typically approach prospective clients in a friendly manner, inquiring about the client’s personal lives and assuming a friendlier approach over a professional one. Client information regarding their personal lives is frequently used as fuel for their deceptive tactics, which they employ throughout the course of the client’s investments. These relationships that the investor and the Forex broker develop are largely the consequence of broker manipulation.
This is why, while courtesy is always appreciated, a good broker should always handle oneself professionally with clients. Reputable Forex brokers should never discourage their clients from self-educating themselves on trading or the Foreign Exchange market in general. A further tactic employed by sham brokers is to discourage their clients from learning about trading and instead push them to rely on the broker’s expertise and make their own decisions. They have the ability to make judgments on behalf of their customers that are not in their best interests.
“MaxFX” is the trading name of “TOPFX” Ltd., a CySEC-regulated firm that provides financial services. “MaxFX” provides traders with varying levels of education and experience with unique trading conditions.
LB, on account of his bad experience with the broker, states that he wouldn’t trust the company on https://www.forexpeacearmy.com/forex-reviews/11769/www.maxfx.com and mentions, “Took at random call at one time and whilst I have an interest in trading I don’t really have the time to devote to it. Despite this, I had a look at some options and even created an account and downloaded and installed the trading software. Didn’t seem to have any uninstall option, and I still haven’t managed to find anywhere on the website to close the account I opened. Callers are professional and ring back when you ask them to, but the calls started getting more aggressive the longer I didn’t invest any money. Eventually, I had a shouting match with a caller, and even after requesting that they don’t contact me again, I have spent the last 10 mins declining calls from the various numbers which they seem to use.”
Hence it can be established that MAXFX is a scam run by an unauthorized authority, and one should not be in business with them. If you are looking to protect your assets from firms such as MAXFX, check out the signals of a fake forex broker below.
- You didn’t go looking for them
Proceed with caution if you are often approached by a Forex broker company that you have not directly contacted. It is usually preferable to seek information from acquaintances or reputable sources rather than reacting to an unsolicited message or phone call.
- They are extremely aggressive
Brokers who run forex scams use more coercive and aggressive tactics than genuine brokers. They often do not respond to requests to discontinue contact and will use various persuasive techniques to do everything in their power to persuade you to spend your money.
- They guarantee inflated returns
Exaggerated returns on tiny investments are a common indicator of a Forex scam. When trading in Forex, promises of large and/or guaranteed profits are a significant red flag. Because returns are contingent on an exceedingly volatile market, these “guarantees” are practically impossible to forecast.
- They have a wide range
In EUR/USD, the usual spread (or relative value trade range) is two to three points. Be wary of those who offer seven-pip spreads (the smallest price movement). Most major currency pairs have four decimal places in their prices. Therefore the smallest fluctuation is that of the last decimal point).
- They provide complex “Terms of Service” and “Risk Disclosures”
Forex scammers use sophisticated jargon and long ‘terms of usage’ agreements and ‘risk disclosures.’ The significance of these agreements is that they are legally enforceable, and each clause can conceal problems for the investor, who may have to seek alternative means of recovering trading losses.
9. Maxi Markets
Maxi Markets is suspected of providing financial services or products in the United Kingdom without our permission. Learn why you should be wary of doing business with this unlicensed firm and how to protect yourself. All firms and individuals in the UK who offer, promote, or sell financial services or products must be authorized or registered. Trading with MaxiTrade is risky. Strategy One Ltd., an offshore corporation established in St. Vincent and the Grenadines, owns MaxiTrade.
Dani on https://www.forex-ratings.com/forex-reviews/maxiforex/ states, “Maxi is a dying broker. No chances to get new customers. That’s why they’ve made me an offer to get a new book of successful trading strategies. I recently closed my micro account in maxi due to a lack of normal trading conditions. What they did was a massive spam attack just to offer me a book. Suspicious, right? But after that, it was an endless flow of phone calls about opening an account again. They said about a new liquidity provider and software, but I know what it is really like. Don’t even listen to anybody from that company. They have nothing to offer, only fees and commissions.”
Dani 18 Aug 2016
If you invest through a Forex broker, it is recommended that you always be vigilant by keeping track of your trades and staying aware of any changes to your investments or account.
When to be concerned:
- If you are unable to withdraw your funds
Be concerned if you attempt to remove funds from your account and are unable to do so. If, when you inquire as to why you are unable to withdraw your funds, the broker offers an ambiguous apology or fails to react to your request, you should be concerned.
- The broker has been blacklisted
Many investors now enquire about the broker’s qualifications before allowing them to manage their account, and if they have been thoroughly evaluated and their license is in good standing, it is more probable that one can invest with confidence. However, “pending licenses” may exist, or the scenario may change in which a license is suspended, or a broker is investigated. As a result, it is recommended to check the websites of regulatory agencies (Consob for Italy, Cysec for Cyprus, FCA for the United Kingdom, NFA for the United States, and so on) on a regular basis to ensure that the broker’s legal standing has not altered.
North-West Financial Broker was established in Sweden in 2005. The company’s major purpose is to provide consumers with a comprehensive set of services for trading on the worldwide currency market Forex, as well as CFDs for metals, indices, and stocks.
The “NWFB” broker has turned into a con artist. This company has stopped meeting its duties to customers and partners, as well as paying payments. A consumer stated in a review, “Clients’ troubles with North-West Financial Brokers began a long time ago.” Many clients mistook this for a regular broker and invested tens of thousands of dollars. The NWFB broker, on the other hand, delayed withdrawals, canceled transactions, and did not react to claims. Since 2010, there have been numerous bad evaluations concerning the NWFB broker!”
It was mentioned in another review, “For a year and a half, I worked for North-West Financial Broker, also known as NWFB. Everything was in order. But then came the bad times. Technical assistance is no longer available, no one answers phone calls, and e-mails are disregarded. Later on, the site was transferred. Broker NWFB was discovered to be a fake resource.” As a result, it is possible to conclude that this broker is a swindler.
Ponzi schemes are often difficult to identify as such, especially in their early phases. Ponzi schemes are fraudulent investment schemes that promise big returns with low risk. Ponzi schemes generate profits for previous investors by attracting new ones. This is comparable to a pyramid scam in that both use new investors’ monies to pay off previous investors. Most Ponzi scheme scammers do not actually engage in the Forex market; instead, the money is cycled internally, with earlier “investors” receiving stage returns that do not exist. Because of the ongoing and expanding membership of “investors,” some of these Ponzi schemes can continue for years.
11. One Market East
One Market East LLC was formed in accordance with Belarusian law (reg. No. 192817451). One Market East LLC is registered with the National Bank of the Republic of Belarus. Furthermore, it is one of the few investment firms that has been certified by the National Bank of the Republic of Belarus (NBRB). It demonstrates that One Market East LLC complies with all compliance, corporate, and regulatory criteria imposed by Belarusian authorities. One Market East provides market execution at the best pricing available, with no rejections or requotes.
Jookie writes in a review, “At first, everything seemed more or less decent, but over time, it grows worse and worse.” The terminal freezes more frequently, pending orders do not work (despite losses made via their error were almost always compensated), and they have recently breached the deposit/withdrawal mechanism. Even with a validated bank card, it became impossible to deposit or withdraw funds. As a result, I departed.” It was mentioned in another review, “My deposit was leaked by One Market East. I didn’t want to work with a manager since I wanted to attempt it myself, but I was persuaded otherwise. So my analyst insisted on working in shares rather than currency, and I consented. After a few days, the meeting had been depleted, all because this analyst had failed to inform me of the spreads and fees associated with this transaction. Stupidly, there is no money!”
The broker for “One Market East” has turned into a con artist. This company has stopped meeting its duties to customers and partners, as well as paying payments.
‘High Yield Investment Programs are a common sort of scam. HYIPs are the most complex type of Forex Ponzi scheme since they frequently pay investors’ interests or ensure a high return on their capital using new investors’ money. The saddest effect of this type of Forex Ponzi Scheme is that those who invest are very driven to involve friends and family members, who are then duped. As is common in these situations, the forex trader’s money is never actually placed on the market but is instead diverted to either the scammers’ accounts or to pay new investors to temporarily gain their trust.
12. Tenko Fx
Tenkofx has the ability to inflict massive losses on his clients and, as such, is a possible scammer in our perspective. This element, on the other hand, necessitates close scrutiny because it is frequently a target for brokerage frauds. Many dishonest brokers, for example, charge exorbitant withdrawal costs that do not just cover service fees. Unfortunately, many non-withdrawal brokers utilize these arguments to disguise themselves as not being fraudsters.
If Tenkofx is a no-withdrawal broker, there is most certainly an issue with their licensing. Working with an unauthorized broker provides no protection against broker fraud. A broker can do whatever he wants with your money as long as it is not regulated. Although a money recovery expert can assist you in recovering your assets, it is always a good idea to study a broker from the start. You can make money through a broker, or at least seem to make money, but that is insufficient. The broker begins to cause issues, and you believe you are losing money.
If you come to the following one with Tenkofx, you have most certainly been defrauded or are involved in a scam. Do not be perplexed if you have been a victim of a Tenkofx or another broker scam. While investigating a broker’s case, contact customer service, but bear in mind that even rogue brokers might appear nice and helpful at first, only to reveal their true colors. Traders should only deal with well-regulated brokers, such as those in the United Kingdom or Australia, and with reputed brokers. All investors and traders are advised to avoid Tenkofx and other Vanuatu brokers. We do not advocate dealing with Tenkofx since this broker has been linked to fraud. The FCA generally advises UK investors not to invest with this broker.
However, the Forex broker lacks the necessary FCA license to do so. The VFSC regulates the Forex broker, but this is insufficient to provide financial services or products in the United Kingdom or Europe. Some fraudulent brokers restrict their clients to their own platform, which may or may not exist at all. However, if the broker no longer provides contact channels such as e-mail, phone, text messaging, and chat and has a support team that does not appear to understand the transaction or is evasively asking particular questions, this could be a sign of a scam or a low-quality broker.
If Tenkofx is attempting to keep your funds, it may try to force you into another transaction when you request a withdrawal. They may even claim that local taxes oblige them to charge a fee for withdrawals. However, accepting large minimum deposits is a frequent practice with fraudsters, whose main purpose is to take as much money from a trader as possible before they notice anything suspicious. Tenkofx is more likely to be a fraud if it requests a higher-than-average fee. If Tenkofx provides higher leverage than that, it may be a hint that Tenkofx is a scam. Tenkofx conceals the majority of the trading conditions, raising suspicions. The primary issue when exploring Tenkofx was that the broker did not offer his physical address in the contact area. There are also no predicted spreads, making calculating the cost of trading with this broker impossible.
If you like to get your funds refunded from a broker, you should look into whether it works or has been working for the last 1 or 2 months so that it appears that the broker has been in operation for a long time, which may be a mistake that the developer should address in the near future. Time for your money to be released without difficulty. A number of unregulated brokers, like Tenkofx, have been accused of defrauding customers. If you have lost money in the Tenkofx scam, you can contact us through a chatbot. Please visit our contact page if you have been contacted by scammers. We have considerable expertise working with regulators and brokers and can assist you in filing an effective claim.
The quantity of results for forex broker scams on the Internet is staggering. While the forex industry is gradually becoming more regulated, there are still many dishonest brokers who should be avoided. When wanting to trade Forex, it’s critical to select brokers who are trustworthy and viable and to avoid those who are not. Before depositing a substantial amount of capital with a broker, we must go through a number of processes to separate the strong brokers from the weak and the reputable ones from those with shady practices. Trading is difficult enough on its own, but when a broker employs methods that work against the user, profiting becomes practically impossible. An old forex fraud involves the automated manipulation of bid-ask spreads. Fraudsters offer wide bid-ask spreads (at least seven pips) on particular currency pairings, making it more difficult to benefit from trades; in fact, all possible returns from a solid investment are canceled out by commissions, which wind up in the brokers’ pockets.
Spreads are being better regulated, with only modest spreads permitted. Such scams can only be carried out by retail Forex brokers who are not authorized by regulatory agencies.
13. Think Forex
Think Forex is a Forex liquidity provider that allows clients and money managers to trade spot Forex in the OTC (Over the Counter) market. Think Forex was created by a group of brokers and traders looking for the ideal atmosphere for their automated trading systems. Think Forex is a scam. After doing in-depth research regarding its credentials and its history, this verdict has been reached. According to a review, “I have traded with ThinkMarkets (Think Forex) a few months ago and made some profits, then all of a sudden they canceled 17,000 USD of my profits claiming that I have violated the TOS. I informed them that I would be filing a complaint with the FCA. But it turns out that I work for Think Capital Limited, which is registered in Bermuda. And this company is not regulated by anyone!! Beware, ThinkMarkets are lying on their website!”
Things to know when you have been a victim of a forex scam
Fraudsters enjoy selling systems that provide programs at extravagant fees, which are justified by the promise of huge financial returns. The ‘signal seller’ is a well-known Forex scam. Signal sellers are retail organizations that offer a system on a daily, weekly, or monthly basis that prides itself on recognizing favorable times to purchase or sell a currency pair in order to maximize earnings. Debt recovery in internet trade is not easy, but it is also not impossible. If you have encountered a scammer, or an alleged scammer, to whom you have committed your money, know that the best method to facilitate the recovery of what you have invested is to rely on a reputable law company that specializes in Forex Litigation. No lawyer can guarantee the full amount lost in trading, but a professional firm will do everything feasible with the right instruments to recover as much as possible. Lawyers in the Forex Litigation Department of the Boccadutri law company have successfully supported several customers in recovering their assets.
The creation of the Cyprus office physically placed us in one of the most successful Forex markets, putting our firm in an even better position to carry out Forex Scam Litigation.
Although you may be more familiar with their parent firm, BetFred, TradeFred is one of a new wave of online brokerages that have emerged in recent months. Despite the success of its parent company, which is one of Europe’s most well-known sports betting platforms, TradeFred has remained under the radar since its inception in 2016. Despite a rather modest start, TradeFred has worked hard in the last few years to steadily develop a name for itself, and they now have an ever-growing customer base. Much of this early growth can be attributed to the natural cross-over potential of the BetFred sports betting platform.
“Do not trust Tradefred,” warns Lesley Jones on https://www.trustpilot.com/review/tradefred.com.
In September of 2019, I put $250 in this company. I wasn’t looking to do this, but I was hovering over a page about Bitcoins when my phone called. It was a person who talked to me and told me that someone would ring telling me what to do all the time, and he did it for me. His name was Dan Weiss or something close, and he was really polite and conversational. Would call me whenever I was at home. My money increased, which pleased me because I hoped it would enhance my pension… After Christmas, I received an email informing me that they were no longer dealing, so I responded by email, requesting any funds owed to me, says Lesley.
He claims to have heard nothing. Beginning of March 2020, someone named James called and informed him that the company had taken over the cash owing to people, showed me graphs, and informed me that it was in Bitcoins and would have to be converted into the currencies of the country you reside in. Lesley was not very tech-savvy, so he did everything they asked him to do, which took them 2.1/2 days before he finished everything he was asked to do eventually. At one point, he says he was so frustrated because he couldn’t do what they were asking that he nearly pulled out, but with all the interest they spoke about, because of this, that, and the next thing, which he didn’t understand but trusted them, he says he did everything.
When Lesly checked his account later to see if the payments were still pending, he saw them in red 960€ & 500€ and another €500. It had a green circle around it, ready to go because they’d already taken the first 1.460 and expected they’d get the rest, but he didn’t have any more for them to steal. Lesly went to the police, wrote out a crime sheet all through Spanish lockdown, which was difficult enough, waited over a week, got it back, and was told the bank would give it back. He asked again after weeks of waiting and hearing nothing, only to be told he was not getting it from them. Lesley was forced to borrow money due to his dire circumstances.
An old and new fraud manifests itself in some sorts of forex-developed trading systems. These con artists boast about their system’s ability to generate automatic trades that earn large sums of money even while you sleep. Because the procedure is now entirely mechanized with computers, the new terminology is “robot.” In any case, many of these systems have never been submitted for formal review or evaluated by a third party. The assessment of a trading system’s parameters and optimization codes must be included in the examination of a forex robot. If any of the parameters or optimization codes are incorrect, the system will create random buy and sell signals. As a result, naïve traders will do nothing but gamble. Although tested strategies are available on the market, prospective forex traders should conduct their own study before investing in one of these methods.
Many trading systems have traditionally been fairly expensive, costing up to $5,000 or more. This might be considered a scam in and of itself. Today, no trader should pay more than a few hundred dollars for a good method. Be especially wary of system salesmen who provide programs at outrageous prices in exchange for a guarantee of spectacular outcomes. Instead, look for legitimate sellers whose systems have been thoroughly evaluated so that they can potentially generate money. Other scams and warning signals arise when brokers refuse to enable withdrawals from investor accounts or when there are issues with the trading platform. Can you, for example, enter or quit a transaction during a tumultuous market movement following an economic announcement? If you are unable to withdraw funds, warning lights should illuminate. If the trading platform fails to meet your liquidity requirements, warning lights should flash once more. Conduct due research on the forex broker you’re contemplating by visiting the NFA’s Background Affiliation Status Information Center (BASIC). Many improvements have driven out the crooks and old schemes while also legitimizing the system for the many decent businesses. However, be aware of new forex scams; the draw and temptation of enormous earnings will always attract more and more adept scammers to this market.
A look at TurboForex’s website reveals that they are not governed by any regulatory body. That is a VERY BIG RED FLAG!! That should be reason enough not to invest with them. They also collaborate with websites that provide “Automated trading software,” which is another red flag because these websites are renowned for scamming schemes. So, Turbo FX is just another unregulated forex broker, which means clients are not protected, and it is quite likely that they will get away with your hard-earned money with no regulatory organization to hold them accountable. Trading with TurboForex is not secure. TF Trading Ltd., an offshore corporation registered in the Marshall Islands, owns TurboForex.
The Marshall Islands is well-known for its lack of rules and restrictions. Because it has a cheap setup cost and does not control FX trading. As a result, it became an offshore haven for dodgy forex brokers like GoldmanCFD, Osbit, and others. TurboForex, according to its website, is an industry-leading provider of CFD brokerage services for Forex, commodities, and stocks/indices. The company provides no information regarding its location or, more significantly, regulation; nonetheless, there are numerous contact lines with phone codes from the United Kingdom, New Zealand, Australia, Brazil, Norway, Sweden, and others. Naturally, TurboForex has no branches or offices in these countries, and it is not regulated in any of the aforementioned or other nations.
Furthermore, the National Securities Market Commission (CNMV) of Spain has issued a warning against TurboForex/TF Trading Ltd:
“TURBOFOREX is not authorized to provide investment services, including investment advice, or to provide auxiliary services in respect to financial instruments, including foreign currency transactions for such reasons.”
15. Vector Securities
Vector Securities Investment Company provides a comprehensive range of financial services in the forex markets to its clients. The broker “Vector Securities” has turned out to be a con artist. This company has stopped meeting its duties to customers and partners, as well as paying payments. “Vector Securities are arrogant crooks,” one consumer stated in a review. Arrived in 2015 and exchanged for a year. They stole $3,000 from me as well as the profit. They simply vanished, the site was closed, and the terminal ceased to function.” It was said in another review, “I’d like to tell you about my bad experience with Vector Securities. I’ve drunk nearly $500 here! The divorce is rash and shameless. You must continue to hunt for such con artists! Don’t believe a firm like Vector Securities if they entice you!” Countless other similar evaluations have been written, indicating that this website is a hoax.
The prospect of making money while you sleep is enticing. After all, we all want to make money passively. In the case of Forex, scammers would promise trading systems or robots that will perform all of the hard work for you. This trade is carried out by computers, which make purchases and sell choices based on predefined factors. Needless to say, these forex robots have not been tested or vetted by any third party to ensure their credibility. In any event, relying entirely on a system to make financial and investing decisions is not a good idea. As much as we would like to believe that computers are error-free, they are not. Furthermore, no one (not even a computer) can forecast global events or other economic indicators that will have an impact on the market. Although having a robot trade for you may appear interesting, you should avoid them since they may be one of the robot frauds.
16. Vertical Markets
The rise of multi-level marketing (MLM) enterprises centered on forex trading has contributed to the currency’s appeal. These industries already have their fair share of mistrust, and FX is no exception. Members of some famous forex MLMs must pay a monthly fee in exchange for daily trade signals and forex educational materials. Members are then rewarded for recruiting more persons through tiered commissions. The emphasis in these firms is less on trading and more on recruiting new members. The truth is that you do not need to join a company or pay a membership fee to trade in the FX market. A forex broker is a business that provides you with access to a trading platform where you can buy and sell currencies. Forex trading requires the use of a broker. Unfortunately, not all brokers are honest and legitimate, and some will steal your money or bombard you with fees. Some are even unregulated, which means they have no accountability to any regulating authority. As a result, legal redress is limited in the event of a scam. It is usually a good idea to do your homework on any broker you intend to employ. The National Futures Association’s Background Affiliation Status Information Center (BASIC) website allows you to conduct a background check of sorts.
“Vertical Markets,” which was founded in Europe in 2008, operated in an offline manner until 2015. Nowadays, this broker is actively growing and successfully providing traders with services in the European, Russian, and CIA markets. Vertical Markets is a trading name of TS Basis LTD, a Seychelles-based corporation. The company is not subject to any financial regulations. The combination of offshore registration and a lack of control is risky.
When you deal with an unregulated broker, you are essentially taking the corporation at its word. Different countries have different agencies that supervise the activity of financial services companies in order to avoid fraud. The Cyprus Securities and Exchange Commission is one such agency (CySEC). To register with the commission, a firm must demonstrate that it has at least EUR 730,000 in capital to assure long-term stability. Furthermore, CySEC mandates the separation of client accounts. This rule states that a broker is not permitted to freely access client accounts and “borrow” money from them. A compensation program is also in place. This is a process comparable to that of an insurance firm. All CySEC-regulated brokers are required to contribute a portion of their profits to a communal pool on a regular basis, which later serves as a guarantee against broker insolvency. If you trade with such a company and it goes bankrupt, your account will be protected for up to EUR 20,000. Vertical Markets additionally provide a type of fund management that is not clearly presented. Whatever the circumstances, a broker who provides this type of service has a high risk of conflict of interest. In these cases, extra caution is advised, especially when dealing with an unregulated company.
A vertical market is a non-regulated offshore broker. If it wasn’t enough to steer you away from the company, their trading conditions are deceptive. Nothing comparable to the ones listed on the website is available in the broker’s demo account. As a result, it is a hoax.
17. Verum Fx
Verum Option was created to help traders earn money in a modern and simple approach – trading binary options and profiting with a single click. This company is untrustworthy! Since 2015, the company “VerumFX” has been offering brokerage services. “VerumFX’s” fundamental purpose is honesty and transparency. This broker says that its key advantage is access to the finest liquidity, dependable products, and excellent support. This broker has stopped fulfilling its duties to customers and partners, as well as paying payments.
You can come across forex funds that guarantee a return on your original investment. Fake funds will advertise very high annual returns that appear highly appealing. But, as the saying goes, if something appears to be too good to be true, it probably is. Instead, consider investing in less risky and more proven index or mutual funds. And don’t fall for FX scammers’ gimmicks. Scammers, as one would imagine, do an excellent job at concealing their dishonest methods. Nonetheless, there are a few red flags that indicate that something is a forex trading scam.
a. Assurity of success and/or significant revenues
Nothing in the market, particularly the currency market, is guaranteed. The market is influenced by too many variables that can alter at any time. So, if someone boasts of massive earnings, guaranteed profits, or precise results, they are operating a fraud.
b. There is no meaningful evidence or background information
It’s fairly easy to find images of profit charts on the Internet. Scammers are astute, and they will only show profits rather than losses over time. In the worst-case scenario, they may even display charts from demo trading accounts that aren’t even representative of genuine trading. Based on this or any other restricted information, do not decide to work with someone or buy a product. Request background information as well as complete disclosure of earnings and losses. If they deny or continue evasive, it’s most likely a forex scam.
c. Aggressive marketing tactics
Unsolicited and repeated marketing is usually a symptom of deception. If you are being pressured to buy a product or service with little information and time, it could be a fraud. Be especially wary if they start asking for personal information that might be exploited for things like identity theft. Avoid it if it feels awkward and pushy.
If you are a victim of a forex scam and need help in getting your money back then please reach out to us to help you!
Common Signs of Warning in A Forex Scam
When the Forex market became accessible to everyone and was nearing its peak of popularity, it was impossible to identify a scam broker from a legitimate broker in the interbank market. In this day and age of globalization and informatization, however, generic information can be found on the Internet in a matter of minutes. It is now much easier to protect yourself from the deceptive practices of blacklisted Forex brokers. The most convenient option is to study our website because we have already saved you time by choosing both real brokers and scammers from all companies. All you have to do is browse our lists. Forex is still a popular form of investment, but it can be difficult to recognize scammers online. Check out our guidelines to help you identify trustworthy forex trading platforms and avoid being scammed.
Foreign exchange fraud is a catch-all term for any scheme aimed to deceive traders into believing they can make large profits by trading on the forex market. The foreign exchange market is essentially a zero-sum game in which one individual wins and another loses. We’ve all heard that investing online is risky. This is particularly true in the foreign exchange market. There is an abundance of forex frauds online, begun by scammers who get confidence from the anonymity of the Internet. It is critical to distinguish a scam from a real forex trading activity in order to protect yourself from financial devastation.
Forex brokers who are aggressive
Recovery from currency fraud can be complicated and time-consuming. It is advisable to recognize the common warning signs before becoming one. Legitimate forex traders are not aggressive when it comes to offering their knowledge or service to prospective investors. However, if a few forex brokers or organizations contact you on a regular basis and you do not know them personally, proceed with caution. Seek recommendations from people you know if you are interested in FX trading.
Lost money to online fraud? We will recover your funds !
High-return claims that are exaggerated
Exaggerated boasts of big returns on minor investments are a common hallmark of a forex fraudster. If you are assured large returns, it is most certainly a scam. Your investment’s performance is greatly contingent on an unpredictable market. You may or may not obtain results fast. However, a company that claims to provide regular high returns is making misleading claims because it is not possible in the foreign exchange trading industry.
Offers with a wide reach
In USD/EUR, the usual spread is two to three points. Be wary of any forex trader who offers spreads of up to seven points. Keep in mind that major currency pairs have four-decimal pricing.
Use of difficult jargon
Restrictions on withdrawal
If you are unable to retrieve funds from your account, it may be time to start thinking about your investment. If a broker gives you a hazy explanation or an ambiguous apology when this happens, you should reconsider your investment or, better yet, withdraw before losing more money.
Broker on the blacklist
At all costs, avoid brokers who do not give you the necessary credentials. You want someone you can trust to administer your account. Do your homework and look into governing agencies to see if a forex broker has a strong legal standing in the forex market.
To prevent being a victim of a foreign exchange trading scam, it is recommended that you work with a regulated broker who has a well-established reputation, a flawless track record, and favorable feedback from previous and existing investors. While the draw of immediate profits is difficult to resist, it is preferable to err on the side of caution and conduct a complete vetting process.
Beware of Dangerous and Malicious Forex Brokers!
The answer to the question “Is Forex Legit?” is yes, Forex is legit. Forex, often known as FX, is a global marketplace where international currencies can be exchanged. The foreign exchange market is made up of currencies from every country. As a result, it is the world’s largest and most liquid market, as well as a legitimate marketplace. Currencies are traded based on an exchange rate, which is the value of one currency in relation to another. Traders and investors all over the world need to know what to look for in their partners. With so many frauds out online, you may protect yourself with a little research. Despite efforts to reform the Forex market, there are still many scams. Scammers are always inventing new techniques to deceive even pros into trusting their legitimacy.
Nonetheless, despite regulatory efforts around the world, many cases slip through the gaps. Some of them are complete scams designed to milk you for one huge transaction. Others pretend to be competent, drawing you in for weeks or months. Hence this article acts as a guide to 20 of the blacklisted companies and the signs to look out for a forex scam!
Lost money to online fraud? We will recover your funds !
The list includes blacklisted brokers, but not all of them; therefore, you must follow the advice below to avoid fraudulent brokers.
- Don’t be enticed by the prospect of exaggerated profits.
- Determine whether the broker is regulated or uncontrolled.
- Don’t enter credit card information until you’ve received confirmation.
- Only use reputable software, such as Quik, Libertex, and MT4-5.
You may expect anything in life, and even if you take measures, you may end up getting cheated. If this unfortunate event occurs, you must contact Global Payback as quickly as possible. The Global Payback is a money-recovery firm that has been in business for five years and is well-versed in dealing with con artists. Most professional traders suggest our firm, and you may even contact us for advice before registering with a broker. When looking for a possible forex broker, traders must learn to distinguish between fact and fiction. For example, when confronted with numerous forum postings, articles, and dissatisfied remarks about a broker, we could conclude that all traders fail and never make a profit. Traders who lose money post articles on the Internet blaming the broker (or some other outside influence) for their own failing strategy.