Forex Trading Scams - Get Your Money Back!
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Forex Scams: Recover Lost Funds
The forex industry is one of the favorite areas for scammers. Because the industry is often portrayed as a legitimate investment option, it can be difficult for ordinary people to distinguish between scam brokers and legitimate ones. Often, most people don't even realize they've been scammed—they just think they've had a "bad trading day." If you feel that your losses were more than just a "bad day," contact us immediately. If your broker is a scammer, we may be able to recover your money.
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How Does It Work?
We strive to help clients who have fallen victim to forex trading scams. Our recovery specialists will work to recover your losses and rectify the wrongs you have experienced at the hands of fraudulent individuals and companies. Additionally, our information guides will help you avoid such scams, preparing you for possible future attacks.
We want to ensure you have all the information about forex scams and fraud. While our primary job is to help clients who have been scammed or involved in some form of fraud recover their financial losses, ideally, we want to help you avoid these scams in the first place. So stay vigilant and well-informed.
What Is Forex Trading?
Forex is the world's largest single trading market, with daily trading volumes as high as $5 trillion, considered decentralized because there is no central processor for trading—in other words, there is no entity like NASDAQ or the New York Stock Exchange acting as a central exchange. Instead, millions of traders use millions of various forex brokers worldwide to complete orders.
Forex trading is also one of the most leveraged markets in the world. In the U.S., regulations cap a person's leverage at 50:1. In other countries, they place zero limits on leverage. It's not uncommon for some non-U.S. brokers to offer 1000+:1 leverage. Because of these factors and some other factors we'll discuss, that's why scams are so prevalent in the forex market. Is Forex Trading a Scam?
In the investment world, forex is the wild west of traditional financial instruments. However, most participants are large institutions like banks, helping companies manage payroll or purchase cross-currency rates for goods. But it's by far the most accessible and cheapest investment for anyone. A futures broker might require a $5,000 minimum investment; many companies in the forex market only require $1. U.S. day trading stocks require a minimum balance of $25,000; forex requires none.
The ease of obtaining significant leverage and the fact that it is open 24 hours a day make it the most attractive market. But it also attracts many bad actors. Some countries regulate the forex market—but the degree is not always the same as in the U.S. Many countries have little to no regulation, allowing anyone to open a brokerage account in their country. There are many, many bad brokers globally—so it's best to stick with brokers located in the U.S., the EU, or the UK.
There are many scams in the investment world. For new and aspiring traders, one of the hardest things to overcome is the sheer amount of misinformation, bad actors, and blacklisted scam brokers trying to take advantage of you.
Here are some different types of forex trading scams:
Broker Leverage
1. The U.S. and EU (recently) cap leverage at about 50:1.
2. If you see a broker offering 500:1, 1000:1, or anything beyond a conservative amount, stay away. This is a predatory action.
3. Avoid any broker that is unclear about margin requirements.
Broker Undisclosed Parameters
1. Avoid brokers that require minimum stop loss or profit targets.
2. Avoid brokers that require you to trade within a certain time frame to exit.
3. Avoid any broker that does not allow you to create your risk management profile.
Broker Spreads
1. The spread is the difference between the buy (bid) and sell (ask)—this should be clearly defined or avoided.
2. Avoid brokers that do not warn you that spreads will increase periodically, such as at the end of the day or during certain holidays.
Signal Sellers
1. Forex signal sellers are individuals who want to sell you signals or recommendations—they want to tell you which currency pairs to buy or short, when to exit with a profit, where to set stop losses, and more.
2. Millions of signal sellers market their success to you with messages like "3,000 pips per week!"—pips are a measure of currency exchange rate changes. The average daily movement for EUR/USD is between 30 and 50 pips.
3. Avoid individuals or companies that promise or imply guaranteed profits. Avoid entities that promise unbelievable returns, such as "90% win rate!" or "188 winning trades, 12 losing trades!" or "huge profits."
Recovering funds in the forex trading market is difficult. When you use unregulated brokers, it becomes even more challenging. Worse still, it is almost impossible to obtain compensation from the scammers who defrauded you.
But we have a successful track record of helping investors who have fallen victim to scams or fraud. We are a regulated fund recovery company that specializes in some of the more complex financial investments: forex, binary options, cryptocurrency, and stocks.
In addition to our professional forex recovery services, our expert team also focuses on client outreach, where we attempt to mitigate the damage caused to our clients by fraudulent actors.
Contact us immediately for a free consultation, and our professionals will work with you throughout the process to maximize your recovery! Is Forex a Pyramid Scheme?
No—but some scams and fraudsters create pyramid schemes. This behavior is pervasive and endemic to all trading financial markets. If you're looking for a broker and they're willing to put you into a "team" to build a network, then this is very likely a pyramid scheme.
Who Regulates the Forex Market?
Several major regulatory bodies/agencies regulate the forex market globally. In the U.S., brokers are regulated by the NFA (National Futures Association) and CFTC (Commodity Futures Trading Commission) but are not regulated by FINRA (Financial Industry Regulatory Authority). In the UK, the primary regulator is the FCA (Financial Conduct Authority). In the EU, each member country has its own regulatory body—but the standards each member state must maintain are established in MiFID (Markets in Financial Instruments Directive).
How Do I Know If a Broker Is Legitimate?
Great question! The first sign that the broker you're looking at is legitimate is whether they disclose they are registered with a specific regulatory body, such as the FCA (UK) or CFTC (U.S.). Another good way to determine legitimacy is to read reviews from current and past clients.
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Forex trading is also one of the most leveraged markets in the world. In the U.S., regulations cap a person's leverage at 50:1. In other countries, they place zero limits on leverage. It's not uncommon for some non-U.S. brokers to offer 1000+:1 leverage. Because of these factors and some other factors we'll discuss, that's why scams are so prevalent in the forex market. Is Forex Trading a Scam?
The ease of obtaining significant leverage and the fact that it is open 24 hours a day make it the most attractive market. But it also attracts many bad actors. Some countries regulate the forex market—but the degree is not always the same as in the U.S. Many countries have little to no regulation, allowing anyone to open a brokerage account in their country. There are many, many bad brokers globally—so it's best to stick with brokers located in the U.S., the EU, or the UK.
Key Points
1. Using a regulated broker ensures: Your funds are safe, the data and information provided by the broker adhere to industry standards, and the broker operates legally and ethically.
2. The forex trading space is filled with services and individuals eager to deceive new traders. Avoid bad brokers, fake educational programs, performance history lies, and fraudulent automated trading systems.
3. If you've been a victim of forex scams—our Payback LTD experts have several options for you.
How to Spot Forex Scams?
1. Using a regulated broker ensures: Your funds are safe, the data and information provided by the broker adhere to industry standards, and the broker operates legally and ethically.
2. The forex trading space is filled with services and individuals eager to deceive new traders. Avoid bad brokers, fake educational programs, performance history lies, and fraudulent automated trading systems.
3. If you've been a victim of forex scams—our Payback LTD experts have several options for you.
Here are some different types of forex trading scams:
Broker Leverage
1. The U.S. and EU (recently) cap leverage at about 50:1.
2. If you see a broker offering 500:1, 1000:1, or anything beyond a conservative amount, stay away. This is a predatory action.
3. Avoid any broker that is unclear about margin requirements.
Broker Undisclosed Parameters
1. Avoid brokers that require minimum stop loss or profit targets.
2. Avoid brokers that require you to trade within a certain time frame to exit.
3. Avoid any broker that does not allow you to create your risk management profile.
Broker Withdrawal Rules
1. You should be able to withdraw funds from your brokerage account at your discretion—but some do not allow this.
2. Avoid minimum volume requirements before you can withdraw.
3. Avoid any broker that does not disclose its withdrawal rules.
4. If a broker advertises deposit bonuses, ensure you can withdraw the bonus within a reasonable time—it should be clear what the requirements are for withdrawing the bonus.
1. You should be able to withdraw funds from your brokerage account at your discretion—but some do not allow this.
2. Avoid minimum volume requirements before you can withdraw.
3. Avoid any broker that does not disclose its withdrawal rules.
4. If a broker advertises deposit bonuses, ensure you can withdraw the bonus within a reasonable time—it should be clear what the requirements are for withdrawing the bonus.
Broker Spreads
1. The spread is the difference between the buy (bid) and sell (ask)—this should be clearly defined or avoided.
2. Avoid brokers that do not warn you that spreads will increase periodically, such as at the end of the day or during certain holidays.
Signal Sellers
1. Forex signal sellers are individuals who want to sell you signals or recommendations—they want to tell you which currency pairs to buy or short, when to exit with a profit, where to set stop losses, and more.
2. Millions of signal sellers market their success to you with messages like "3,000 pips per week!"—pips are a measure of currency exchange rate changes. The average daily movement for EUR/USD is between 30 and 50 pips.
3. Avoid individuals or companies that promise or imply guaranteed profits. Avoid entities that promise unbelievable returns, such as "90% win rate!" or "188 winning trades, 12 losing trades!" or "huge profits."
Broker Spam
1. Avoid websites with side ads and banners promoting a single broker.
2. Avoid anyone or anything that promotes a single broker.
3. Individuals promoting a single broker usually have some deal with them. Many non-U.S. brokers offer various incentives for people to find new clients. They may offer the seller your deposit or a rebate on any trade you make.
4. If someone tells you about a broker or a website is promoting a broker—ask if they have an IB (introducing broker) agreement—they must disclose this in the U.S. when asked.
1. Avoid websites with side ads and banners promoting a single broker.
2. Avoid anyone or anything that promotes a single broker.
3. Individuals promoting a single broker usually have some deal with them. Many non-U.S. brokers offer various incentives for people to find new clients. They may offer the seller your deposit or a rebate on any trade you make.
4. If someone tells you about a broker or a website is promoting a broker—ask if they have an IB (introducing broker) agreement—they must disclose this in the U.S. when asked.
Educational Services
1. Be wary of the countless free or paid trading education opportunities.
2. Many websites look very professional and may even link to certifying institutions without permission.
3. Check for quality education providers from the CMT Association (Chartered Market Technicians Association), IFTA (International Federation of Technical Analysts), or STA (Society of Technical Analysts).
4. Even a lot of the education provided by professional U.S. brokers is decades out of date.
1. Be wary of the countless free or paid trading education opportunities.
2. Many websites look very professional and may even link to certifying institutions without permission.
3. Check for quality education providers from the CMT Association (Chartered Market Technicians Association), IFTA (International Federation of Technical Analysts), or STA (Society of Technical Analysts).
4. Even a lot of the education provided by professional U.S. brokers is decades out of date.
Automated Trading or AI (Bots or Robots)
1. It's best to avoid anyone selling forex robot trading systems.
2. AI systems for retail investors have existed since the 1990s, but nearly 100% of them have failed.
3. The buzzword in current investment scams is "artificial intelligence." Avoid anyone claiming they use AI. Only two known private hedge funds have anything close to true self-learning AI. They won't sell their bots to anyone.
4. Think about it logically: If you created a profitable AI (essentially a money-printing machine), would you tell anyone? Would you sell it? Probably not—your advantage disappears once others can use this tool.
5. Automated trading systems are a common way for forex scammers to perpetrate fraud.
1. It's best to avoid anyone selling forex robot trading systems.
2. AI systems for retail investors have existed since the 1990s, but nearly 100% of them have failed.
3. The buzzword in current investment scams is "artificial intelligence." Avoid anyone claiming they use AI. Only two known private hedge funds have anything close to true self-learning AI. They won't sell their bots to anyone.
4. Think about it logically: If you created a profitable AI (essentially a money-printing machine), would you tell anyone? Would you sell it? Probably not—your advantage disappears once others can use this tool.
5. Automated trading systems are a common way for forex scammers to perpetrate fraud.
Flashy Ads or Fake Lifestyles
1. Avoid any service or individual that uses images of "high-end lifestyles," such as bikini-clad girls on yachts, Lamborghinis or Ferraris in the background, large mansions or homes, or private jets.
2. A good rule to follow for any investment or speculation activity: If it looks or sounds too good to be true, it probably is.
How to Recover Funds from a Forex Scam?
1. Avoid any service or individual that uses images of "high-end lifestyles," such as bikini-clad girls on yachts, Lamborghinis or Ferraris in the background, large mansions or homes, or private jets.
2. A good rule to follow for any investment or speculation activity: If it looks or sounds too good to be true, it probably is.
But we have a successful track record of helping investors who have fallen victim to scams or fraud. We are a regulated fund recovery company that specializes in some of the more complex financial investments: forex, binary options, cryptocurrency, and stocks.
In addition to our professional forex recovery services, our expert team also focuses on client outreach, where we attempt to mitigate the damage caused to our clients by fraudulent actors.
Contact us immediately for a free consultation, and our professionals will work with you throughout the process to maximize your recovery! Is Forex a Pyramid Scheme?
Partner Authorized Agencies
Office Locations
Commodity Futures Trading Commission (CFTC)
Financial Industry Regulatory Authority (FINRA)
Consumer Financial Protection Bureau (CFPB)
Federal Financial Supervisory Authority (BaFin)
Autorité des marchés financiers (AMF)
Swiss Financial Regulator (FINMA)
Financial Conduct Authority (FCA)
Hong Kong Monetary Authority (HKMA)
Monetary Authority of Singapore (MAS)
Financial Futures Association of Japan (FFAJ)
Financial Industry Regulatory Authority (FINRA)
Consumer Financial Protection Bureau (CFPB)
Federal Financial Supervisory Authority (BaFin)
Autorité des marchés financiers (AMF)
Swiss Financial Regulator (FINMA)
Financial Conduct Authority (FCA)
Hong Kong Monetary Authority (HKMA)
Monetary Authority of Singapore (MAS)
Financial Futures Association of Japan (FFAJ)
Office Location in California, USA:
900 Wilshire Blvd, Los Angeles, CA 90017, USA Office Location in Bern, Switzerland:
Schanzenstrasse 4a, 3008 Bern, Switzerland WCXP+7X Office Location in Hong Kong:
8 Financial Street,Central,Hong Kong Office Location in London, UK:
30St May,Axe,London EC3A 8BF
900 Wilshire Blvd, Los Angeles, CA 90017, USA Office Location in Bern, Switzerland:
Schanzenstrasse 4a, 3008 Bern, Switzerland WCXP+7X Office Location in Hong Kong:
8 Financial Street,Central,Hong Kong Office Location in London, UK:
30St May,Axe,London EC3A 8BF