Is forex a scam

Online Broker Scams - These Trading Platforms Are Ripped Off!

Broker scam is widespread on the Internet. The scam that is used here is simple but effective: advertisements are placed which lure potential victims to an online broker that is often deceptively reputable. There are often unrealistic promises of profit, which should ensure trust and lead to the highest possible deposit.

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List of Fraud Brokers

Partly from research, but to a large extent from reports from aggrieved investors reported to us, we collect in this list all brokers [What is a broker?], Which have been clearly identified as trading fraud or are suspected.


Trading Teck

Suspected case *

Commerce wealth

Suspected case *

Horizon Invest

Suspected case *

German broker FX

Suspected case *

Interactive trading

Suspected case *

PrimoTrade

Suspected case *

StockCore

Suspected case *

Finocapital

Suspected case *

Pibexa

Suspected case *

Professional assistant

Suspected case *

Finexics

Suspected case *

FX Optex Group

Suspected case *

24option

Suspected case *

FX Global CFD

Suspected case *
* The assessment is based on submitted experience reports in combination with indices such as lack of regulation within the European Union, offshore headquarters, etc. In some cases also through tests.

3 important notes


  1. No reputable broker will promise you a certain return or urge you to deposit a certain amount.
  2. Particular caution is required with trading bots and other automated trading systems.
  3. NO reputable broker will ask you to transfer taxes. If this request should come, it is definitely a fraud! It's a ploy to help you send more money to the platform. With some products, taxes are withheld directly from the profit at brokers based in Germany or you transfer it directly to the tax office. No way however, taxes are transferred directly to the broker!

Trading Scams: Important Tip To Detect


The broker is based in "Commonwealth of Dominica" (Dominican Republic), "Vincent and the Grenadines" (Saint Vincent and the Grenadines), "Marshall Islands" or the Maldives? Then we generally advise against trading with the broker! You can often find this information in the footer of the page or in the imprint.

If you have been caught by a scam broker yourself or if you know of one, please report them to us. We look at the provider and include him in the table if necessary!
Report Broker Fraud »

Scammers to attract customers via social media

Scam brokers are usually not represented in the top Google search results (there is no guarantee that this will be the case!). This is ensured by the now sophisticated algorithm, which does not make it easy for new websites in highly competitive areas to quickly position themselves at the top. And speed is an important point for fraudulent online brokers, which allows as many people as possible to be withdrawn before the fraud becomes known.

The means of choice for scammers are therefore often social networks such as Facebook or Instagram. Even if advertisements are checked algorithmically and sometimes manually by employees of social media groups, there are always fraud networks that find ways to get an advertisement through.

Another strategy are profiles with a bot behind them. This engages you in a conversation that quickly ends in praise for a certain broker, with whom you can allegedly triple your capital within a very short time.

Usually such things are easy to expose because only a few branches of conversation have been programmed. However, this is about the masses and there are enough users who fall for the fraud.

Sometimes it's not even a bot, but a real person who tries to get you to log in to a pyramid system. In this case there are often connections to fraudulent network marketing networks.

Cave of the Lions, Dieter Bohlen & other celebrities

In Germany, the fraudsters in this country like to use familiar faces such as Frank Thelen or Dieter Bohlen. Some of these fake ads contain thematically appropriate headings:

  • "That's how Frank Thelen got rich within 1 week."
  • "Bill Gates - Secret software makes him even richer."
  • "There are already thousands of millionaires through this system - and you can become one too."

Others, on the other hand, initially have nothing to do with the topic and only have the purpose of luring as many users as possible to the website through "clickbait":

  • "Dieter Bohlen - His family is in deep grief."
  • "Incredible invention from the lion's den finally revealed."

Logos of major newspapers to build trust

As soon as you get on theScam website ends up, it is often no longer about the first announced topic. Instead, you will find an article that advertises, for example, a mysterious trading bot that automatically trades Bitcoin or another currently popular financial product for you. At the end there is a link to the promising scam broker.

In order to make the deception perfect and to increase the readers' trust, the website is structured like a daily newspaper known in Germany, including the logo of BILD, Spiegel, Focus, FAZ or Süddeutsche Zeitung. For visitors from Austria, logos from the Kronen Zeitung, AUSTRIA or Heute are often used. Of course, none of these publishers actually had anything to do with the fraud.

CFDs, Forex, Cryptocurrencies & Binary Options are especially popular with scam brokers

Three financial products are particularly popular: CFDs, Forex and cryptocurrencies.

Although all three products are fundamentally legitimate, they have one thing in common: In theory, high profits can also be achieved in reality. And of course that works. Everything that - supposedly - makes you rich quickly is popular.

Broker fraudsters take advantage of this effect and play with basically unrealistic expectations of their victims.

We can promise: There is no such thing as a financial product or automated trading that can make you rich quickly. Such a claim in itself would be dubious.

Manipulated demo trading software

The use of manipulated demo software is popular.

The idea behind it is as follows: Demo accounts are also available from reputable brokers in order to be able to test the functions.

With fraud brokers, however, the demo account is a fake software that simulates trading and - "coincidentally" - always generates more profits than losses.

That creates trust. The user feels like the best trader in the world, which inspires him or her to try it with real money.

Winnings withheld: The "You need to deposit more money" scam

If you have accumulated a certain profit, you would of course like to have it paid out. Of course, this is not possible. When asked by "Support" there is often the information that more money has to be paid in so that a payout can be made.

Now you have to basically say that a certain threshold is not uncommon for some brokers. If, however, this is in the range between € 50, - and € 200, -.

In the case of fraudulent brokers, however, it is claimed that the trading account, for example, must have at least € 20,000 in order for it to be paid out. In any case, absurdly high amounts.

It's just an excuse to get more money out of the unsuspecting traders. In the end, nothing is paid out.

Other excuses are that there are currently technical problems that make a payout impossible.

Why aren't fraud brokers being shut down?

If you are wondering why so-called "fraudulent brokers" are not paralyzed, then the subject is often more complex than it first appears.

The real people behind often hide behind international networks and have their headquarters in small countries (mostly offshore) where legal prosecution is extremely difficult or the authorities do not cooperate.

If a website is switched off, a new one will be opened under a similar name.

How can I recognize dubious online brokers?

Experts recognize dubious brokers at first glance. This can be seen in the semi-professional design, the generic icons and the weird slogans. Understandably, laypeople find it much more difficult here.

  • The broker is based in a country within the European Union (EU).
  • There is an imprint and it is clear who is responsible for the operation.
  • Particularly with speculative financial products such as CFDs, there are corresponding risk warnings.
  • The provider is supervised by a European regulatory authority.
  • Conspicuous misspellings on the page
  • Promises of profit and no balance between reference to the chance of profit and the risk of loss.
  • Everything that has to do with "automatic trading", "bots", "arbitrage" must be viewed with a certain amount of skepticism.

No regulation - the most obvious indicator of dubious brokers

There are only a few regulatory authorities in the EU where the brokers operating here are supervised:

  • FMA (Financial Market Supervision - https://www.fma.gv.at)
  • BaFin (Federal Financial Supervisory Authority - https://www.bafin.de)
  • CySec (Cyprus Securities and Exchange Commission - https://www.cysec.gov.cy)
  • FCA (Financial Conduct Authority - https://www.fca.org.uk)

Every reputable broker is registered with one of these institutions. If this is not the case, we advise against registering!

Unusual deposit methods

Unusual deposit methods are a fairly simple indication of scam brokers. The most obvious of these is the Paysafecard payment service, which offers anonymity to a certain extent, or the difficult-to-track Western Union.

Credit cards such as Visa or Mastercard are also very popular with some fraudsters. Conversely, however, it cannot be said that every broker who offers the latter types of deposit is dubious at the same time.

The full range of diverse methods is key. For example, hardly a scammer would offer a means of payment such as PayPal or normal bank transfer (Wire) to a European IBAN.

What can I do if a broker has scammed me?

If you have come across a fraudulent broker and in the worst case even lost money, we recommend the following procedure:

  • Stop all payments, no matter how plausible the reasons may sound on the part of the broker. The scammers will try to sell you more deposits.
  • Even if the prospect of success is manageable, try to get a full or at least partial payout in conversation with the respective broker. Set a reasonable period of time of, for example, 3 days.
  • If you paid in via PayPal or credit cards such as Visa or Mastercard, you can try to get a chargeback through these companies.
  • If nothing helps, only a report to the financial market supervisory authority and a report to the police will help.
  • In the future, trade only with reputable providers. You can find an overview of regulated alternatives »here.
Always be one step ahead on the financial market ...

100% free & exclusive newsletter for the FINANZSACHE community.
Get tips that are really noticeable in your wallet and that you have never seen before!

Contents of the newsletter: Exclusive tips & helpful information on investments, stock exchanges & Co. (finances). Including news from FINANZSACHE and competitions only for newsletter subscribers. The dispatch takes place via the service provider Mailchimp. By subscribing to the newsletter, you agree to the relevant data protection provisions.

Report Broker Fraud Here

If you have become a victim of online broker fraud yourself, we would be happy if you could tell us about your case in the comments so that we can add the respective provider to our list and inform other visitors about certain scams.

Please note, however, that we cannot offer any legal prosecution or legal advice ourselves.

information

Update: From now on we are changing the reporting system to public comments so that other traders are warned immediately.

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